Starting a business: What the over-50s need to know?

This is the title of an article by Patrick Collinson in the Guardian on Saturday for which I was interviewed but I am suggesting that you read it not just because of personal vanity(!) but because the case studies that Patrick quotes are uplifting and examples of what we can do for ourselves even if traditional jobs are thinner on the ground. And who wants old style 9-5 traditional jobs any more anyway!

The over 50's entrepreneurs

A new report by the National Endowment for Science, Technology and the Arts (NESTA) found that so-called ‘third age entrepreneurs’, aged between 50 and 65, were behind 27% of successful UK start-ups between 2001 and 2005.

During this time, more than 350,000 new companies were established, with third age founders at the helm of 93,500, resulting in the creation of almost 400,000 jobs.

The report also suggested that the presence of more experienced entrepreneurs often translated to success for start-ups, with the businesses displaying the most impressive growth co-founded by a team of young and older entrepreneurs.

NESTA argued that older entrepreneurs would be critical to the UK’s future economic growth. By 2025, it is estimated that half the adult population will be aged 50 or over.

Jonathan Kestenbaum, chief executive of NESTA, commented: “At a time when an ageing society is being viewed as a problem, our study shows that there is a wealth of experience driving the UK economy today. Many third age entrepreneurs are setting up exciting new companies which are employing thousands of people.”

According to NESTA, there are 122,300 third-age entrepreneurs in the UK, of which 47,000 are the sole founders of their businesses.

Contrary to the preconception that tech companies are usually started by young people, the report found little difference in the sectors chosen by older and younger founders or their attitudes towards risk.

If anything, third age entrepreneurs were typically less concerned about having their homes repossessed, due to having other sources of income to fall back on, and just half had plans to retire at 65. Older entrepreneurs are also often motivated by the desire to give something back, NESTA added.

PRIME’s Olderpreneur Roadshow

PRIME, thanks to sponsorship of Bank of America, are running a series of roadshows for the over 50's who are considering self-employment, or wanting to start their own business.

The first is in Bristol on 23 September.

PRIME’s Olderpreneur Roadshow is part of a practical package of support the charity offers over 50s including a Business Club, Olderpreneur Loans Scheme and Mentoring.

At the FREE roadshow anyone over 50 who wants to find out whether self-employment or setting up their own business might be for them, can come along. They will hear from local ‘olderpreneurs’ about their experiences, and inspirational business speaker Tom Edge author of Age Is No Barrier. They will also be able to quiz local business support organisations and network with other 50s wanting to start up on their own.

After Bristol, the roadshow will be moving onto Leeds on the 14th October, Birmingham on the 4th November, and Manchester on 9th December. A London date is soon to be confirmed.

“The over 50s are an increasingly important part of our economy. Yet in many cases their energy, creativity, experience and sheer ingenuity is being unfairly discarded. At least 3.5 million 50 to 65-year-olds have no work. Over 50s who are out of work for six months after being made redundant only stand a one in ten chance of ever having the chance to be an employee again”, says Laurie South, Chief Executive of PRIME.

PRIME’s founder Prince Charles says. “The experience and skills which people build up over a lifetime are an invaluable resource”, he says. “It is madness for society not to make use of this.”

More self employment for the 50+'s in US

In our book we quote the increase in self employment for the over 50's and over 60's so it is with interest that I found an article describing the same phenomon in the US. Sadly of course we know that one of the reasons is the difficulty in getting a new job after 50 but also the research suggests that our age group are less interested in traditional jobs.

Looking at self-employment rates by age groups in November of 2007 to May of 2009,the numbers don’t suggest a big rise in entrepreneurship among young people. Self-employment rates rose among people aged 16 to 19, but were constant among those 20 to 24.

On the other hand, self-employment has risen dramatically among older people from November 2007 through May 2009. This rate has risen from 15.6 to 17.3 percent.

While the self-employment rate has been higher among people 65 and older for a while, the gap between the self-employment rate for the 65-plus age group and the next highest group (55 to 64) has grown.

The Death of Retirement

This is the title of a new report from Standard Life that provides even more evidence to back up the central themes of The Rainbow Years. One in three 46-to- 65 year olds want to keep working in new jobs – “on their own terms” – after the official retirement age. The same proportion will learn a new skill. VSO, the overseas development charity, recruits ten times more people aged over 50 than twenty years ago.

According to the Standard Life research, one in twenty would like to start a new business when they retire from their current full-time job. That amounts to one million new businesses. To give that context, there are only two million businesses registered in the UK today.
Honey Langcaster-James writes " The very word ‘retirement’ - coming as it does from the French ‘retirer’ literally means ‘to draw back’. This carries negative connotations as people are expected to opt out of life once they are no longer ‘useful’. This is no longer true. Increasing life
expectancy and prosperity means we will now spend close to a third of our life post 65. We will be healthier, wealthier and, for the first time, have the genuine freedom to define our own identity and direction, without being shackled by the need to ‘fit in’ or ‘tow the line’. This is the ‘third age’, an age of choice and freedom to do what you want, go where you want and be who you want to be".

And she probably hasn't even read The Rainbow Years!

Starting your own business?

We have already reported on the fact that more people over 50 are starting businesses and are successful compared with younger age groups so you might be interested to know that Business Link has created an on-line guide for over 50s thinking of starting their own business. Look at this and you will be able to check out as to whether or not self employment is right for you.