In the UK, over 43% of new business owners are aged fifty or above. That means that four out of ten new business are started by the over fifties, this is a 66% rise from ten years ago. To most people there is no right time to start your own business but it seems the number of self-employed ‘olderpreneurs’ have doubled in recent years. There are roughly 4.6m self-employed people in the UK, with the number raising each year and 43% of them are over 50’s.
The budding business owners in their 50’s and above are capitalising on the recently introduced pension freedom and appear to be taking their tax free pensions to pursue their own business plans.
Older entrepreneurs have multiple elements on their side, which plays an important role in funding and supporting the growth of over 50’s start-ups. Low interest loans and mentoring, provided by start-up loan companies are encouraging entrepreneurs to take the jump and start up their own company. Transfer valuations on final salary schemes have soared in the last few years, allowing people to access money to fund their venture. Many take the unfortunate situation of a redundancy payment and turn it into a life changing venture.
PRIME research has found that start-ups created by those over fifty are nearly half as many times more likely to be successful their young counterparts, meaning there really is no wrong time to start the business you have always wanted. In fact older business owners and start-ups have many advantages compared to young business owners, they can use their experience and knowledge to their personal profit. Age discrimination doesn’t exist when you’re your own boss, especially as many people in this demographic struggle in finding and keeping full time employment. The number of self-employed people aged sixty-five has doubled, maybe due to more loans and funding or maybe due to the lack of employment. 60% of those who work over seventy are self-employed. The days of leisurely retirement in your sixties and seventies have been replaced by the need to continue to find income, yet workplaces are not offering this. The sector which has had the biggest growth in the self-employed over fifty market is business and finance, likely due to the difficulty there is finding and holding a career as an over fifty in this industry.
Unemployment for women have led them into starting their own business, the ever rising retirement age leaving many women without work and income. Two third of old women believe there is a strong culture of work place discrimination for middle aged women, this is why self-employment is a welcoming proposition. Age UK has found the largest change in self-employment statistics are with women in the over seventy category.
So next time you think you’re too old and past it remember there is always time to start a business.