Entrepreneurs are not who you think they are

An interesting story from Newsweek — Innovation Grows Among Older Workers:

As it turns out, the average founder of a high-tech startup isn’t a whiz-kid graduate, but a mature 40-year-old engineer or business type with a spouse and kids who simply got tired of working for others, says Duke University scholar Vivek Wadhwa, who studied 549 successful technology ventures. What’s more, older entrepreneurs have higher success rates when they start companies. That’s because they have accumulated expertise in their technological fields, have deep knowledge of their customers’ needs, and have years of developing a network of supporters (often including financial backers). “Older entrepreneurs are just able to build companies that are more advanced in their technology and more sophisticated in the way they deal with customers,” Wadhwa says.
And the age at which entrepreneurs are more innovative and willing to take risks seems to be going up. According to data from the Kauffman Foundation, the highest rate of entrepreneurship in America has shifted to the 55-64 age group, with people over 55 almost twice as likely to found successful companies than those between 20 and 34. And while the entrepreneurship rate has gone up since 1996 in most other age brackets as well, it has actually declined among Americans under 35. That’s good news for one very simple reason: baby boomers are now in their prime, startup-founding years, which will unleash what Kauffman researcher Dane Stangler expects to be an entrepreneurship boom. Since new companies create the vast majority of jobs, the positive impact on a post-recession economy could be great.

So how do we give that 55 year old entrepreneur the tools they need to succeed? That is the public policy question.

One thought on “Entrepreneurs are not who you think they are”

  1. Thanks for sharing this very good information. Though there are many of us who support and promote the activities of baby boomer entrepreneurs, there are still many baby boomers who do not know that the entrepreneurial boom is happening.
    Secondly, the Gen X or Y entrepreneur trying to start might want to look for ways to partner with baby boomer entrepreneurs. There are some exciting possibilities to share knowledge, resources, and contacts.
    Thanks for keeping this opportunity in view.
    Shallie Bey
    Smarter Small Business Blog


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