The Times Australia
The Times World News

.
The Times Real Estate

.

More older New Zealanders are starting businesses — and they’re motivated by more than just money

  • Written by Judith Davey, Senior Associate, Institute for Governance and Policy Studies , Te Herenga Waka — Victoria University of Wellington
More older New Zealanders are starting businesses — and they’re motivated by more than just money

You’re never too old to become your own boss, it seems. All over the world there has been an increase in people aged 50 and over setting up their own businesses.

In the United States, the highest rate of business start-up activity is among those aged 55-64. Japan is reporting people aged 60-plus now comprise over one third of new entrepreneurs. In the UK, “third age” entrepreneurs are responsible for over a quarter of new start-ups.

Similar trends have been observed in Australia, and there is also evidence businesses started by so-called “senior entrepreneurs” may have a higher survival rate than those started by younger people. Why is this happening?

New Zealand lacks comparable detailed data, but similar patterns are evident. To find out more about what’s happening here we drew on 20 in-depth interviews with people who had started new businesses after the age of 50.

Conducted as part of Massey University’s “Maximising Workforce Participation for Older New Zealanders” programme[1], our interviews suggest people’s motivations don’t fall neatly into the categories proposed in the existing literature.

The conventional view has been people are either “pushed” into entrepreneurship through redundancy, age discrimination or forced retirement, or “pulled” by the prospect of business opportunities, potential profitability, greater freedom and flexibility.

This is too simplistic and doesn’t reflect the diversity of people’s experience. Motives are often mixed, complex and overlapping. But there were some consistent themes.

Many motivations

We identified five broad “entrepreneurial orientations” to describe the process of starting a business for the first time later in life.

Opportunity takers: for this largest group of interviewees, opportunities arose in different ways but often reflected their backgrounds and work histories.

Some created their own opportunities, while others were offered an opportunity they embraced. This could be almost accidental — being offered a business loan, or meeting someone with complementary skills.

Difference makers: those in the second largest group were characterised by a vision of the impact and contribution they wanted to make.

Starting a business was not an end in itself, rather they were motivated by a desire to help others, save the planet or contribute to the public good. For example, a highly experienced nurse aimed to offer self-help workshops for women; an engineer became interested in developing green energy technology.

Read more: How business accelerators can help new startups succeed after COVID-19[2]

Direction changers: people in this group recognised they wanted change in their work. All had been in professional roles but a combination of self-awareness, insight and life-stage factors had them asking, “do I want to be doing this for the foreseeable future?”.

A new business offered the opportunity to use their skills and experience in fresh fields. A theatre nurse retrained as a counsellor; a man who had experienced business failure and redundancy resurrected his interest in painting and is a successful artist at the age of 70.

Needs must: this group had faced unsatisfactory work situations and creating a business seemed the best option to generate income. Factors such as redundancy, office politics and health setbacks triggered the decisions.

Even if they’d never before contemplated being entrepreneurs, starting a business, while challenging, was a silver lining and offered new prospects.

Investors: members of this small group had backgrounds in business. Their primary driver for establishing new enterprises was financial, building on their acquired skills and knowledge.

Unlike the others interviewed, they undertook extensive risk analysis and professional advice before pursuing their business opportunity.

Encouraging older entrepreneurship

Our interviewees do not exhibit the recognised “entrepreneurial” motivations of innovation, growth and maximising profits. Many were not purely economically driven, but often motivated more by personal well-being and altruism.

We feel there are both social and economic benefits in the trend towards senior entrepreneurship. Meaningful and appropriate work is beneficial to personal well-being. For individuals, it provides a sense of self-worth, accomplishment and social inclusion.

Read more: Ending furlough will hit older workers hard – here's how to soften the blow[3]

And there are benefits to society when older people have the opportunity to contribute their skills and experience as entrepreneurs and mentors, helping to break down ageism.

Increasing economic opportunities for older people will also contribute to economic and business growth, and better investment in human capital and institutional knowledge in mixed-age workforces.

It can also help offset the costs of an ageing population through increasing tax revenue and reducing older people’s need for support services.

As a society, we need to encourage and support this trend towards more older people starting businesses as we increasingly live longer and healthier lives.

Geoff Pearman, managing director of Partners in Change and Associate Researcher at Massey University’s Health and Ageing Research Team, co-authored this article.

Read more https://theconversation.com/more-older-new-zealanders-are-starting-businesses-and-theyre-motivated-by-more-than-just-money-163003

The Times Features

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Uncover the Elegance of Gorgeous Diamond Tennis Necklaces

Key Highlights Diamond tennis necklaces are a timeless piece of jewelry that exudes elegance and sophistication. They feature a continuous line of brilliant-cut diamonds, cre...

Dental Implants vs. Dentures: Which Is Better for You?

When it comes to replacing missing teeth, two of the most common options are dental implants and dentures. Both have their advantages and disadvantages, so choosing between them ...

What Neck Pain Really Means (And Why It’s More Than Just Poor Posture)

Neck pain is often brushed off as something temporary — a tight spot after a long day at the desk or a poor night’s sleep. But when the discomfort keeps returning, it could be a ...

The Work of Gosha Rubchinskiy: Fashion, Culture, and Youth

From Designer to Cultural Architect Gosha Rubchinskiy is not just a fashion designer—he's a cultural force. Born in Moscow in 1984, Rubchinskiy began his career in fashion in t...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping