More over-50s than ever before are turning entrepreneur concludes study by Birmingham academic
MORE people than ever before are starting a business beyond the age of 50, a new study led by a Birmingham academic has concluded.
The Global Entrepreneurship Monitor (GEM) UK 2013 Report, which monitors new trends in entrepreneurial activity, said the conclusion was a reversal of the historically low levels of activity usually seen in this age bracket.
Led by Professor Mark Hart, of Aston Business School, together with Professor Jonathan Levie, of the University of Strathclyde, the report measures and compares activity, attitudes and aspirations throughout the UK as well as France, Germany and the US.
The surge in the number of older entrepreneurs is said to reflect a new trend in the UK’s changing economy. From 2002 to 2008, entrepreneurial activity among the over 50s has averaged out at around 4% – much lower than those in the 18-29 and 30-49 age brackets.
However, from 2008, the report shows the rate for the over 50s increasing markedly – reaching its highest ever level of 6.5% in 2013 and going against figures for the younger age brackets, which show a peak in 2012, followed by a decline 12 months later.
The increase among the over 50s applies to both men and women, although male rates were ‘significantly higher’ – and the research pinpoints that both sexes were launching their own businesses predominantly out of opportunity rather than necessity.
Prof Hart said: “The shake-up from the recession has provided the impetus for people over 50 to say that it’s time to do something that they’ve always wanted to do and to take an opportunistic approach to creating their own business.
“These are not people who are past retirement, but individuals with years of productive activity in front of them and their move into the ranks of entrepreneurs opens an interesting new aspect within the UK’s business culture, both socially and economically.”
However, he said while the majority of businesses started by the over 50s were driven by opportunity, there was an element of necessity behind this increase in new start-ups.
“That can point to an element of age discrimination, as people in this age group struggle to get into the job market and are forced into launching their own businesses to get back to work,” he added.
The Prince’s Initiative for Mature Enterprise (PRIME) is a national charity which supports business creation for the over 50s.
Alastair Clegg, PRIME’s chief executive, said: “Everyone is talking about the rise of self-employment and new businesses being started and this report confirms that it’s the over 50s who are driving this positive trend forward.
“The over 50s have the skills, experience and dedication that naturally lend themselves to enterprise and businesses started by older people help benefit the economy, provide jobs and work for other people and, more importantly, help keep older people in the workforce.”
As well as reporting the growth of older entrepreneurs, the report finds that overall levels of enterprise are slightly below the very high rates recorded in 2012, but still above the longer term trend, pointing to another change in the economy.
It also reveals that the UK outperformed European comparison countries such as France and Germany on almost all entrepreneurship indicators in 2013 and, while a dip in activity was recorded following a 2012 peak, levels still remained just above the longer-term trend.
