In an earlier column
, I explained that older people start businesses at a much higher rate
than younger ones. As I wrote there, “the incorporated self-employment
rate is 4 times higher among those aged 65 to 69 than among those aged
25 to 34—and a whopping 25 times higher than among those aged 20 to 24.”
This pattern worries some observers, who believe it reflects a lack of job opportunities for older Americans. For instance, writing in the True Slant, Anne Field argues that many older entrepreneurs today are being driven to start businesses because they have lost their jobs and cannot get new ones.
ENTREPRENEURSHIP AMONG SENIORS NOT DRIVEN BY JOB LOSS
It is doubtless true that in today’s economic environment, some
entrepreneurs of all ages have chosen to start businesses because they
were laid off and couldn’t find new jobs. However, the data don’t
indicate that the high level of entrepreneurial activity among those
over 55 can be attributed primarily to recent high levels of job loss.
As Dane Stangler explained in a report
he wrote for the Ewing Marion Kauffman Foundation, “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 20-34.” That
is, boom or bust – and we have seen several of each since the mid-1990s –
older Americans are more likely to run their own businesses than
younger ones.
To read the full, original article click on this link: Should We Worry About Older Entrepreneurs? | Small Business Trends
Author: Scott Shane
