Entrepreneurs Just Get Better With Age

QUESTION: Im thinking about starting a business after I retire next month. Ill be . Am I too old to start a business? -- Milton A. ANSWER: Milton, congratulations on your pending retirement. I find it admirable that after many years of hard work you are thinking about starting a business. While most men your age would be content to sit on the porch and watch the world go by, you are considering a ride on the entrepreneurial roller coaster. Youre certainly tall enough to ride this ride, but are you too old? Heres my standard answer: It depends. It depends on your health, your energy, your drive, your goals, and of course, your finances. If all those are in good shape and you have your spouses approval (thats a biggie), then there is absolutely no reason why you should not start a business at your age. In fact, the numbers are actually in your favor. According to recent studies percent of men and percent of women over are self-employed. Thats compared to just percent for other age groups. According to a Vanderbilt University study the number of entrepreneurs age to will grow by million by . Thats compared to a million decline for entrepreneurs age to . A survey of baby boomers conducted by the American Association of Retired Persons (AARP) revealed that percent of respondants planned to work beyond retirement age, and percent of those planned to launch new businesses. The study noted, "Self-employment among American workers increases with age, with the most dramatic jump occurring at age ." Older entrepreneurs may also find starting a business easier than their younger counterparts because older entrepreneurs tend to have more experience to draw from and more assets with which to finance a business. Further evidence comes from a report released by Barclays Bank entitled Third Age Entrepreneurs Profiting From Experience. The report shows that older entrepreneurs are responsible for percent more business start-ups than years ago. This amounts to around , business start-ups last year alone. The survey also showed that todays third age entrepreneurs (as the report calls entrepreneurs over the age of ) dont mind putting in the hours required to build their business. Nearly percent work an average of hours or more a week. Third agers also rated holidays, lack of stress and a balance between work and home life more important than their younger counterparts. The report further showed that only percent run the business as the only source of household income, with percent supplementing their pension. Other key findings showed that third age start-ups account for percent of all new businesses, and third age entrepreneurs are three times more likely to be male than female. There is a downside (isnt there always?). Many businesses fail within the first few years and older entrepreneurs may be less able to handle the financial loss than younger entrepreneurs. Its one thing to lose everything at , but its a much bigger deal to be financially ruined at . So my advice, Milton, is that if your health and finances allow (and the Mrs. gives the green light) by all means start your business. Climb on the entrepreneurial roller coaster and hang on tight. You get the senior discount, by the way. Just try not to lose your lunch when things get bumpy and youll probably do just fine.