Multiple research sources, including that of the SBA, suggest that mature individuals are actually more capable of starting and running a business than younger people (Singh and DeNoble, 2003; Weber and Schaper, 2004).
Compared to their younger counterparts, older entrepreneurs can possess advantages such as:
- more developed networks
- more work and industry experience
- a higher technical and managerial skills level, and
- a stronger financial position.
Networks can assist in mobilising resources, getting support and help, creating legitimacy
during start-up and growth, and establishing viable business relations (Lechner and Dowling,
2003). Older entrepreneurs are likely to have accumulated a good deal of such social capital
during their career employment, which can in turn be employed in their own business. In their
qualitative study comprising 22 older entrepreneurs in London, UK, Kibler et al. (2012)
found that older entrepreneurs that used existing social capital gained from a previous job had
fewer difficulties in starting and running their enterprise.
The technical and managerial skills as well as industry knowledge gathered during career
employment can assist older entrepreneurs in establishing a new venture successfully. For
example, managerial experience can help the older entrepreneur avoid such pitfalls that
people unfamiliar with business skills would be likely to fall into.
Similarly, in-depth knowledge of an industry can help the individual identify gaps
Full article by Teemu Kautonen