The Coming Entrepreneurship Boom
As the U.S. economy emerges from the recession, “the primary determinant (of growth and productivity gains) is our level of entrepreneurial activity,” Stangler says in the summary of his study, “The Coming Entrepreneurship Boom.”
Despite an aging population, Stangler says, the United States may be on the cusp of an entrepreneurship boom because of older people starting business not in spite of them.
The highest rate of entrepreneurial activity is occurring in the 55 to 64 age group, Stangler says.
Other findings:
- In every single year from 1996 to 2007, Americans between the ages of 55 and 64 had a higher rate of entrepreneurial activity than those aged 20 to 34.
- For the entire period, the 55 to 64 group averaged a rate of entrepreneurial activity roughly one-third larger than their youngest counterparts.
- The average age of founders of U.S. technology companies is 39, with twice as many over age 50 as under age 25.
One key reason may be the erosion of big corporations keeping workers their entire careers. “Long-term employment has fallen dramatically for people aged 35 to 64 over the past 50 years,” Stangler says. “The most striking development today has been the deep drop in the incidence of lifetime jobs among men over 50.”
But Stangler raises a couple of other interesting questions: Will the deep recession make older people less likely to take risks? Are older entrepreneurs more likely to start “lifestyle” businesses rather than high-growth, world changing companies?
Thought you would enjoy this data that I copied from an OC Register article.
Best, Edwin Dearborn