Starting a business after 40. Despite what the media might say, older entrepreneurs are more likely to be successful than younger ones.
The general consensus is that older entrepreneurs are those above 50, often referred to as second career entrepreneurs.
They are also referred to as ”seniorpreneurs’, ‘third age entrepreneurs’, ‘elder entrepreneurs’ and, ‘grey entrepreneurs’.
Research has shown that those over 50 have a 70 percent chance of surviving their first five years in business compared with the mere 28 percent of their younger counterparts.
So, if you’re in this category, you probably have more to give than you realize.
So, if you are starting your business after 40 read on because this article highlights five benefits of starting a new business after 40.
Benefits of starting a business after 40
So, here are 6 amazing benefits of starting a business after 40.
Starting business after 40 – innovative entrepreneurship
Research has shown that there is a relationship between age and innovative entrepreneurship, and the two most active age groups in terms of innovative entrepreneurship are age groups 20–29 and 40–49; age group 30–39 is less active.
At 40-49, the experience and knowledge accumulated over the years contribute to being able to create an innovative enterprise.
Starting a business after 40 – retirement benefits
Research in another context, has also shown that businesses established by older entrepreneurs have a higher survival rate than those of younger entrepreneurs.
One of the reasons is that for many people, especially the over 50s category, starting a business at that age is a way to prepare for retirement.
Maybe you have been working for the same organisation for so long, and you’re now thinking about retirement.
In the past retirement is about shutting down and living off a pension.
Some still do depending on factors such as the nature of the job, the age of retirement, and other factors.
Nowadays, many also retire because they want to become self-employed by create new businesses.
For older people, self-employment give greater flexibility and control over the amount and pace of work.
Starting a business after 40 – network benefits
Another benefit of starting a business after 40 is that you possess a resource many young people do not have or are just starting to build; must do not have the human, financial and social capital that their older counterparts have gained over a long working career.
Networks are critical for a thriving business. Through networks, entrepreneurs can gain assistance in terms of mobilising resources and getting support.
Those who start a business after the age of 40 tend to possess this advantage as they have more developed networks.
Think about those customers you’ve served at your place of employment.
Think about the suppliers you know. What about those awesome colleagues that have become more like family.
These relationships, that have been developed over the years, help in creating legitimacy for your business as an older entrepreneur during start-up and growth of your business.
The social capital you have accumulated over the years, during your career employment, through these business relationships, can in turn be useful in your own business.
These network ties (close and further connections) may also help older entrepreneurs access finance and other resources that they may otherwise no have access to due to age limiting access to from sources such venture capitalists.
Starting a business after 40 – work and industry experience
Another benefit of starting business after 40 is that, as an older entrepreneur, you have more work and industry experience— a solid foundation, upon which you can build your business.
Older entrepreneurs tend to be successful in business because they have years of technical and managerial skills.
Many successful older entrepreneurs established businesses that build upon the industry knowledge they have gathered during career employment.
Thisd contributes to the success of older entrepreneurs because unlike younger entrepreneurs, their knowledge and experience helps to to avoid pitfalls that inexperienced people could, without the business skills, fall into.
Your in-depth knowledge of your industry can also help you, as an older individual, develop marketable business ideas because you can identify gaps in the current business offerings.
Starting a business after 40 – nature of industry experience
Individuals that have work experience in private organisations are more likely to be entrepreneurial than those who worked in the government institutions.
Research suggests that the reason is that government employees work in an environment and organisational culture that is not entrepreneurial oriented.
However, those with jobs in the private sector are more familiar with how to balance concepts such as: independence, teamwork, responsibility, performance-based pay etc.
These increases the possibility of such employees becoming self-employed afterwards.
Starting a business after 40 – low-cost benefits
Although, this doesn’t apply to only people over 40, it generally believed that the older you get, the less likely you are to embrace technology.
However, technology has made it easier and cheaper to set up and manage a business.
There are many low-cost and easy to use business tools that even the older entrepreneurs would find easy to adapt to.
With these website building tools and the growth of social media, many other traditionally large costs can also be significantly reduced.
Now, even after 40, you can start a new business that can begin trading without an office or physical retail premises by using technology.
Starting a business after 40 – conclusion
You might be starting the next most innovative business if you’re starting business after 40.
You’re building on the experience, knowledge and skills acquired over the years.
In addition, you have a wealth of accumulated social capital that increases the legitimacy of your business.
However, it is also believed that mindset and routines that you’ve established over time can make it more difficult for those over 40 to recognize entrepreneurial opportunities or creativity.
I personally believe that this shouldn’t be a stumbling block to your decision to create an innovative company.
That is, if you take the necessary steps to develop and improve your digital skills and problem-solving ability.