The Start Smart Series Pt 1: Entrepreneurship After 50

More People Over 50 Are Starting a Business (And It's Not About Age)

Entrepreneurship is no longer just for the young. More and more individuals over 50 are leveraging their experience, professional networks, and financial stability to start impactful businesses.

While inspirational stories about midlife entrepreneurs are everywhere, age itself isn't the true driver of success. So, what’s fueling this trend?

This two-part series dives into why entrepreneurship among those over 50 is thriving, highlights the economic influence of this demographic, and explores why age might be the least important factor in achieving entrepreneurial success

• Part 1: Meet the Rising Trend of Older Entrepreneurs (You're Here)
• Part 2: The Secret Advantages of Midlife Entrepreneurs

Part One: Meet the Rising Trend of Older Entrepreneurs

Economic Influence of Older Adults

Starting a business over 50 becomes more significant when we start to look at some emerging trends. One article in the Mailchimp blog emphasizes older adults as a vital consumer group, accounting for around 70% of disposable income worldwide by 2050.

Fashion spending alone in this age group is predicted to rise by $14 billion in the next 20 years, presenting significant growth opportunities.

Perhaps it's not surprising then that success in entrepreneurship knows no age.

In the U.S., the Kauffman Foundation conducted a study revealing that age is not a limiting factor. According to the survey, the average age of U.S.-born tech founders was 39, with twice as many older than 50 as were younger than 25.

Guidant's Financial 2022 Small Business Trends survey also shows similar results for the US, with Baby Boomers (ages 57 to 75) accounting for nearly half of all small-business owners, compared to only 7% for Millennials (ages 26 to 41).

Likewise, the U.S. Census's Annual Business Survey also reveals that those aged 50 to 59 are the most business owners.

We're also seeing the same trend across the pond in the UK, with an increasing number of individuals are starting businesses around or post-retirement. The Financial Times quotes UK Office of National Statistics data revealing that of 4.97m self-employed people in the U.K., "almost a third were 55 or over and about 45% are over 50."

Rest Less' analysis also shows a rise in self-employment among older workers in the UK. According to Rest Less, the likelihood of self-employment increases with age, with 16% of early 50s, 21% of early 60s, 41% between 70 and 74, and even 51% of those over 80 being self-employed.

intrinsic

Of particular note was a recent SixtyandMe article which did a great job of summarizing the key benefits of being an older entrepreneur over 50, as discussed widely on the internet.

Margaret Manning, Sixty and Me founder,as giving argued that it can often make a big difference when children grow up and fly the nest, with greater financial and personal flexibility being two major contributing factors.

Others cite management proficiency, deep industry knowledge, combined with the ability to spot market trends and opportunities as catalysts for building a great business over 50.

When I read the success stories of older entrepreneurs, some cited their deep personal networks as giving them an advantage. In contrast, others pointed to more intrinsic, qualities such as determination, discipline, and self-awareness.

Should We Believe the Inspirational Stories?

It's always tempting to reach out for inspiration when considering starting a new business, and there's something comforting in being able to follow in somebody else's footsteps.

That's why there's no shortage of inspirational stories like Arianna Huffington who, at 66, founded her first media company, The Huffington Post, in her 50s and recently launched her second, Thrive Global.

Then there's Richard Branson who recently joked he'd just set up another two businesses, arguing that age should never be a factor.

Numerous successful entrepreneurial ventures started by individuals over 50 are detailed in a recent Arkenea post.

And at NextAvenue, 64-year-old serial entrepreneur AnnMaria De Mars provides insights into what to do and avoid when starting a company later in life. I found De Mars' observations particularly noteworthy, so you should check out how she challenges some common misconceptions about setting up a business later in life.

But It's Not All Rosy

All this is excellent news for anybody over 50 considering moving into entrepreneurship. But we shouldn't ignore the fact that not everybody makes this choice as a lifestyle decision. Often, many people simply don't have the choice.

The Financial Times recently reported that there's a new generation of people who refuse to keep quiet on age discrimination at work. One business executive was awarded £125,604 in compensation after the judge found she had been unfairly dismissed.

But only some get to win in court. The recent Covid-19 pandemic highlights the extent to which company restructuring, redundancies, and early retirement packages can lead many older people to rethink their choices seriously.

While younger individuals tend to bounce back and re-enter the labor market more quickly, those over 50 often face significant challenges in finding another job.

Some of the statistics are quite astounding. For example, the UK website Rest Less reported that the number of over-50s claiming universal credit benefits in the UK rose by 93% within six months in 2020, while redundancies among the over-60s rose steeply.

When this happens, the fear of running out of money in retirement can often fuel the feeling that entrepreneurship is more necessary than desirable. In 2019, almost a third (1.58 million) of the 4.97 million self-employed individuals in the UK were aged 55 or over, while about 45% were 50 and above.

It's the same in the US, where a recent Forbes article covered the topic of older people being pushed out of a job "due to lack of opportunities." According to MarketWatch, "Millions of Boomers in their 60s still want or need to work, and are having a hard time finding jobs. It is reported that some 21.2 million Americans in their 60s are no longer in the labor force."

Summary

While age can bring advantages—experience, perspective, and vast networks—it isn’t the sole ingredient for entrepreneurial success. Success in entrepreneurship isn’t tied to age—it’s rooted in strategy, resilience, and an understanding of what truly powers impactful businesses.

Entrepreneurship after 50 is more than just celebrating years; it’s about proving that the barriers between age and business success are breaking down. It highlights the ability of midlife founders to leverage often-overlooked strengths, such as stability, refined decision-making, and lessons learned through years of life and career journeys. These are not just advantages for midlife founders—they are tools anyone with the right approach can harness.

Thriving entrepreneurs understand that their stage of life is not the differentiator—it’s how they transform their accumulated knowledge and skills into tailored strategies for success. Their ability to adapt, innovate, and strategically harness resources makes the difference.

Coming up in Part 2 of The Start Smart Series, we’ll explore the actionable strategies and unique insights you can use to turn a lifetime of experience into your greatest entrepreneurial asset. Your age isn’t a limitation—it’s the foundation for a new era of success.