Why Older Entrepreneurs Are More Successful
Several studies indicate that people over-45 seem to be more successful at founding and running startups.
With all the news of young grads founding their own startups and venture capitalists initiating mentoring programs for them, it may seem that the under-35 segment makes for the most successful entrepreneurs. But new research suggests the contrary and that it is the older generation that tends to build more startups and have more success with them than younger people.
Slate reveals a study done by the Global Entrepreneurship Monitor:
The under-35 cohort made up just 19.1 percent of “total entrepreneurial activity,” meaning planning, setting up, or managing a new business. Plus, the report notes that in a “radical shift,” entrepreneurship has declined for the young and increased for the over-45 cohort during the recession. If trends continue, older workers will be the more entrepreneurial set in just a few years.
So what is it about older entrepreneurs that make them more successful at starting their companies? Besides having a long and stable credit history which helps in securing loans, they tend to have more assets which could be used in funding and the experience to manage a business adeptly, all of which are critical for running a successful company.