Getting Old and Getting Down to Business

A huge huge huge segment of our population, the 'baby boomers', is moving into the traditional age of retirement. There is concern that this may cause a drain on the economy because of social security payments going out, a reduced work force, and retirement investments becoming a source of income.

Turns out this may not be so. Most entrepreneurs are seasoned citizens, not high energy, driven, creative younger people as conventional wisdom would have it. New businesses being created belong primarily to the group aged 55-64.

From the results of a study by 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.

For the entire period, the 55–64 group averaged a rate of entrepreneurial activity roughly one-third larger than their youngest counterparts.

These trends seem likely to persist: in the Kauffman Firm Survey, a longitudinal survey of nearly 5,000 companies that began in 2004, slightly less than two-thirds of firm founders are between the ages of 35 and 54.

Additionally, Kauffman research has revealed that the average age of the founders of technology companies in the United States is a surprisingly high 39—with twice as many over age 50 as under age 25.

With people living not only longer but healthier, it may be us seasoned citizens that keep the economic engine going. Hat tip to The American Enterprise Institute. Go here for the full detailed report.

Besides, never trust anyone under 30.