Senior entrepreneurship, which has also been called senior-preneurship or silver entrepreneurship, may be considered unconventional. However, many entrepreneurs over the age of 55 already own businesses. Others are starting new ones, purchasing existing companies, or monetizing their knowledge, skills, and abilities. Though profit is necessary for any successful business, senior-preneurs often harness entrepreneurship as a second career that fulfills personal goals, fosters self-fulfillment, and builds family legacy.

Facts About Senior-Preneurship

Business ownership by people over the age of 55 is a normal, not a rare, phenomenon. An estimated 51% of small businesses in the United States are owned by senior-preneurs. They have continued to enter self-employment at a higher rate than younger adults for the past 25 years. This fact also reflects a changing demographic. With longer life expectancy, many older adults shift from retirement to business ownership. Unfortunately, many of these businesses lack a succession plan.

For many Alabama cities and towns, shopping and commerce on Main Street is a feature of daily life. Just as common, the service trades, farms, and family businesses that are staples of local communities and often owned by senior-preneurs matter. If these businesses are open, commerce is happening in towns, on farms, and in rural and urban communities. This translates not only into jobs but also into avenues for job skills training for youth and young adults. Just one business owner can influence an entire block, creating additional opportunities for their community.

Why Seniors Chose Entrepreneurship

Many older adults seek meaningful work once they reach the age of 55 or older. However, they may not seek work with as much involvement as a full-time job.

Reasons older adults may become entrepreneurs include the following:

• Fulfilling long-term passions.
• A desire to work for themselves.
• Making money using their practical wisdom.
• Producing value and solving problems for people and their local communities.
• Being forced by financial necessity due to layoffs, inadequate retirement funds, or fewer prospects in the job market.
• Greater control over scheduling, pace, and autonomy.
• Remaining engaged and the continual use of pertinent skills.

What Works in Their Favor

While entrepreneurship can be challenging at any age, older adults have experiences that can provide meaningful advantages in business ownership. Those could include the following:

• Access to existing resources that help start a business.
• Being more likely to have established relationships based on trust and experience meeting client needs.
• Having decades of experience in a particular industry, trade, or community service.
• Tapping into existing professional or personal networks for suppliers, lenders, and potential customers early in the process.
• Experience with setbacks, budgets, and making adjustments to changing markets.
• The ability to make business decisions is based on reality.
• Being more likely to access outside support for start-up assistance, such as nongovernment help or public lending programs.
• Having fewer money issues. They may use their savings, home equity, retirement funds, and social networks, which put them in a better financial position.

What Can Go Wrong?

Starting a company later in life does not eliminate standard business risks. Senior-preneurs can face unique risks and should honestly evaluate business ideas before investing energy and finances. Although meaningful work promotes well-being in later life, the physical effects of illness, caregiving, or simple fatigue can disrupt a company’s operation, especially when the senior-preneur is the founder, sole proprietor, bookkeeper, and decision-maker.

Some senior-preneurs may lack persuasion or proficiency with technology, such as online banking, digital advertising, social media, inventory management, or cybersecurity. In addition, they may lack a succession plan for emergencies or the ability to exit a business.  Understanding these potential challenges is no cause for shame. Senior-preneurs should be aware of these challenges and plan accordingly for backup caregiving, skills training, cash requirements, and other work demands.

Plan for Succession

Succession planning needs to be a part of the planning phase for any business owner. The average age for a business transfer is 63. Putting off succession planning can leave a family, partner, or buyer with significant barriers to future success. Only an estimated 30% of small businesses succeed, which means many owners still lack a written succession plan. For more information on business succession planning, read the brief Success Planning: Is Your Business Future Ready?

The Bottom Line

Starting or expanding a business is normal for many individuals over the age of 55. Older adults will continue to contribute valuable knowledge in small business ownership. These individuals bring stability and deep connections that increase the likelihood of customer loyalty, a stronger workforce, and neighbor support. Senior-preneurs should consider changes in health, the development of caregiving responsibilities, cash-flow demands, technology challenges, and other factors affecting the lives of both the owner and those in the owner’s household.

The Alabama Cooperative Extension System at Alabama A&M University, the Alabama Small Business Development Center, SCORE, and the US Small Business Administration provide links to practical resources. Senior-preneurs are not too late and are not alone in their business pursuits. Their contributions are still vital to their family, customers, and community.

More Information

Starting a business can be overwhelming, considering all of the information and resources available. To be notified about upcoming Alabama Extension workshops, programs, and courses, be sure to sign up for the Community Resource Development (CRD) listserv at www.aces.edu/go/crdinfo. In addition, you can schedule a virtual appointment with a member of the CRD team and begin turning a dream into reality. Visit www.aces.edu/go/1on1s for more information.

For more information, contact Urban Regional Extension Agent Tiffany Bennett at tvb0006@aces.edu.