The Times Australia
Business and Money
The Times Real Estate

.

Contrary to popular belief, middle-aged entrepreneurs do better

  • Written by Alex Maritz, Professor of Entrepreneurship, La Trobe Business School, La Trobe University
Contrary to popular belief, middle-aged entrepreneurs do better

Bill Gates was 21 when he and Paul Allen registered Microsoft. Steve Jobs was 22 when he and Steve Wozniak launched Apple. Mark Zuckerberg started Facebook in his Harvard dormitory.

The biographies of these tech billionaires who achieved great success in their twenties has helped cement the perception that entrepreneurship is a young person’s game.

Not true. Such stories are the exception rather than the norm.

Starting young can have some clear advantages. For one thing, it gives you much more time to fail the several times most enterprenuers do before they put it all together and succeed.

But overall, the research suggests, older age is associated with higher levels of entrepreneurial success.

That’s an important policy point for governments that want people to keep working (and paying taxes) longer even though employment prospects for job seekers decline significantly[1] from about the age of 45.

Rather than just putting money into “job ready” programs or subsidies to employers to hire older workers, more should be invested into programs to support the demographic with the best chance of successfully starting new businesses.

Read more: Employers need more than money to hire older workers[2]

Mature-aged enterprise growing

My research[3] with Bronwyn Eager (University of Tasmania) and Saskia De Klerk (University of Sunshine Coast) suggests mature-aged entrepreneurship – after the age of 50 – is growing faster than among any other age group in Australia.

Mature-aged entrepreneurs run about a third of all businesses that are less than three years old. (All up, mature-aged entrepreneurs have started about 380,000 businesses with a turnover of about A$12 billion a year.)

Younger entrepreneurs do have some advantages. As a group, they are healthier and tend to have fewer family obligations. They may be less risk averse, often because they have less to lose. The may also benefit from others’ positive perceptions of them as “youthful”.

But mature-aged entrepreneurs have three key advantages: human capital, social capital and financial capital.

Our research involved surveying more than 1,000 mature entrepreneurs and correlating the results to other studies on entreprenuers. Our findings indicate older entreprenuers have accumulated business and life experience, knowledge and skills, social networks and resources that better equip them for success. They tend to have better social skills, and are better able to regulate their emotions, than those younger.

They do have a lower risk tolerance than younger entrepreneurs, but that is offset by other factors, such as confidence in their abilities and experience. Their fear of failure is thus less than their younger counterparts.

Read more: Keeping mature-age workers on the job[4]

The numbers are with them

Our research supports previous studies finding no evidence to suggest younger entrepreneurs are more likely to succeed than those in middle age.

MIT Sloan School of Management professor Pierre Azoulay and colleagues, for example, analysed the data[5] on 2.7 million founders of US companies between 2007 and 2014 that went on to employ at least one person. The average age at founding was 41. For the “1 in 1,000” highest-growth ventures, the average age was 45.

The authors conclude “all evidence points to founders being especially successful when starting businesses in middle age or beyond, while young founders appear disadvantaged”.

Indeed, they found the “batting average” for creating successful firms rose dramatically with age. A 50-year-old founder was 1.8 times more likely to achieve “upper-tail growth” than a 30-year-old founder. Those in their early 20s had the lowest likelihood of success.

Read more: Most successful entrepreneurs are older than you think[6]

How government can help

Entrepreneurship may therefore be a viable alternative to mature-aged unemployment.

There is, however, compelling evidence that aspiring mature-aged entrepreneurs require specialised government support and incentives, both to start their businesses and grow their businesses.

Government initiatives such as the Entrepreneur’s Program[7] (formerly the Entrepreneurship Infrastructure Program) and Entrepreneurs Facilitators[8], for example, could be better designed to account for the specific needs of mature-aged entrepreneurs.

Such support will both enhance the success of these businesses – and employment prospects for young and old.

References

  1. ^ decline significantly (theconversation.com)
  2. ^ Employers need more than money to hire older workers (theconversation.com)
  3. ^ My research (journals.sagepub.com)
  4. ^ Keeping mature-age workers on the job (theconversation.com)
  5. ^ analysed the data (www.kellogg.northwestern.edu)
  6. ^ Most successful entrepreneurs are older than you think (theconversation.com)
  7. ^ Entrepreneur’s Program (business.gov.au)
  8. ^ Entrepreneurs Facilitators (www.dese.gov.au)

Authors: Alex Maritz, Professor of Entrepreneurship, La Trobe Business School, La Trobe University

Read more https://theconversation.com/contrary-to-popular-belief-middle-aged-entrepreneurs-do-better-159906

SME Business News

Brand Storytelling: How Video Marketing Can Enhance Your Brand Identity

In the competitive landscape of 2025, building a strong and recognisable brand identity is crucial for standing out in the marketplace. One of the most effective ways to shape and communicate y...

Future-Proofing Your Business with Strategic Defence Insight

In an era marked by rapid technological change, global uncertainty, and evolving security risks, the need for long-term resilience in business has never been greater. Organisations across indu...

Maximise Your Amazon Profits with These 5 Simple Seller Strategies

Selling on Amazon offers countless opportunities for individuals and businesses to grow their income. But with so many sellers joining the platform every day, it’s not enough to just list your ...

Why Professional Mining Electricians Are Critical for Mine Safety and Operations

The mining industry, with its complex and hazardous environments, demands high standards of safety and efficiency. One pivotal role in ensuring these standards is that of professional mining el...

The Times Features

Discover the Charm of a Girl's White Dress

Key Highlights Timeless elegance: White dresses feel pure and have classic charm. They are perfect for many types of events. Versatile styles: You can pick from lace, embroid...

Top Medical Grade Red Light Therapy Devices in Australia

Key Highlights Lumitter™ has advanced red light therapy devices that combine new ideas with wellness. Red light therapy helps lower pain and swelling and boosts skin health. ...

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Business Times

Brand Storytelling: How Video Marketing Can Enhance Your Brand Id…

In the competitive landscape of 2025, building a strong and recognisable brand identity is crucial for standing out in the ...

Future-Proofing Your Business with Strategic Defence Insight

In an era marked by rapid technological change, global uncertainty, and evolving security risks, the need for long-term res...

Maximise Your Amazon Profits with These 5 Simple Seller Strategie…

Selling on Amazon offers countless opportunities for individuals and businesses to grow their income. But with so many sell...

LayBy Shopping