You may be surprised if you start a business after the age of 50! Financial success in retirement Much more General More than you might think.
Can you guess which of the following statements are fact and which are fiction?
Most entrepreneurs worldwide are between 55 and 64 years old
fact
by Global Entrepreneurship Monitor (GEM)In 2010, the highest age group for entrepreneurship worldwide shifted to those aged 55-64. Additionally, entrepreneurial activity among those over 50 has increased by more than 50% since 2008.
In the United States, 34 million older adults want to start their own business.
Gig jobs are growing
fiction
A University of Michigan study found that older entrepreneurs are two to three times more likely to start a new business than get involved in the gig economy.
Uber, Lyft, and all other contract employers may need to worry about jobs (and competition).
Once you turn 50, your chances of success increase
fact
If you think about famous entrepreneurs, many of them were young when they started their companies: Mark Zuckerberg was still in college when he started Facebook, Elon Musk made his first big fortune in his 20s and started the company that would become PayPal before moving on to Tesla, and Bill Gates was only 23 when he started Microsoft.
But they turned out to be the exception and more likely to succeed later in life.
The times and high-growth entrepreneurship studyA study conducted by MIT in collaboration with the U.S. Census Bureau analyzed 2.7 million people who started businesses between 2007 and 2014, 50-year-olds are twice as likely to achieve great success Thirty-year-olds are more likely to succeed than teenagers, defined as the top 0.1% of performers.
“These findings strongly contradict the common assumption that emphasizes youth as a key characteristic of successful entrepreneurs,” the study authors wrote.
Starting a business after age 60 is much more likely to be successful than starting one at age 30
fact
The MIT study also found that a 60-year-old startup founder is three times more likely to launch a successful startup than a 30-year-old founder. Even more astonishing, a 60-year-old founder is 1.7 times more likely to launch a startup that ranks in the top 0.1% of all companies.
Success seems to grow with age.
- A 50-year-old startup founder is 2.2 times more likely to found a successful startup than a 30-year-old founder.
- A 40-year-old startup founder is 2.1 times more likely to found a successful startup than a 25-year-old founder.
- A 50-year-old startup founder is 2.8 times more likely to found a successful startup than a 25-year-old founder.
Businesses run by people over 50 are more likely to go bankrupt
fiction
GEM reports that five years after launch, 70% of ventures founded by entrepreneurs over the age of 50 are still in business, compared to just 28% of companies launched by younger entrepreneurs.
There are more people who want to start small businesses than those who want to retire.
fact
From the research UPS It turns out that 54% of respondents would rather start a small business than retire if money and health were not an issue in retirement.
It’s also reported that roughly two-thirds of Americans dream of being their own boss.
Productivity increases with age
fact
according to Gary Burtress“If the sudden influx of older workers into the workforce has hurt worker productivity, this is not evident in the earnings statistics of older workers themselves,” said John Myers, a senior fellow in economic studies at the Brookings Institution. “Today, workers ages 60 to 74 earn more on average an hour than workers ages 25 to 59. The hourly wage premium enjoyed by older men and women has been steadily increasing since the turn of the century.”
Higher-educated people tend to work longer than less-educated people
fact
Older Americans who remain in the workforce past age 62 are much more likely to have more post-high school education than workers who retire at a younger age.
Older entrepreneurs start businesses because they need money
fiction
From the research Guidant Financial The majority of entrepreneurs over 50 (42%) say they started a business because they wanted to pursue a passion, not because they needed money.
The majority of small businesses in America are owned by people over the age of 50
fact
According to a Guidant Financial survey, 54% of American small business owners are over the age of 50.
The specific details are also interesting.
- 33% of small business owners are between 50 and 59 years old
- 17% are aged 60-69
- 4% are over 70 years old
So why are older entrepreneurs so successful?
There seems to be no consensus on why older entrepreneurs are so successful. Some theories include:
Execution over ideas: Younger people may have great new ideas, but older entrepreneurs may be better able to execute them.
connection: If you’re in your 50s or older, you have more experience and know more people, and those connections may be crucial to the development of your business.
Confidence: With age comes experience, and the confidence comes from having been through some things before. You know you can overcome obstacles and make it through.
Access to capital: Older people tend to have better credit, and access to capital may make it easier for them to start successful businesses.
what are you going to do
If you are thinking about starting a business, your chances of success seem high.
Here are some tips:
With the NewRetirement Planner, you can model any type of future retirement income from your second career.
It’s fun to see how your efforts impact the plan.
