Recruitment, Education & BusinessBusinessEnterprising over 50s contribute more than £24.4 billion to the UK economy Enterprising over 50s contribute more than £24.4 billion to the UK economy
02/11/2007
New research has shown that 'Senior Startup businesses' by the over 50s who decide to 'go it alone' by setting up their own businesses are contributing a staggering £24.4 billion to the UK economy per year. The study, which focussed specifically on new businesses established by older entrepreneurs, shows that the group are becoming a powerful force within UK plc, and account for approximately one in six fledgling businesses.
The study by Yellow Pages also revealed some interesting insights about those taking the plunge into enterprise later in life, including the benefits of being their own boss and using their experience, knowledge and self-confidence to get ahead in business.
According to the study:
· Senior Startups turn over an average £67,500 per year and tend to work alone, from home
· Most Senior Startups (61%) regret not having set up on their own earlier in life, with 44% claiming that they are now happier than they’ve ever been
· Most have no thoughts of retirement and see their business as their pension plan - in fact more than two thirds (71%) want to run their business for as long as they are able
· Businesses within this group tend to be financed by savings, with only 13% funded by bank loans
· The main motivations for starting up a company at this time of life are a desire to do something pleasurable (39%), obtaining a better work/life balance (29%) and not wanting to work for someone else (24%)
Mark Hart, professor of small business research at Kingston University said: “The research provides clear evidence that the entrepreneurial activities of this diverse group are capable of providing sustainable incomes as they engage in new business ventures resulting from many years of experience. This is an important finding in the context of a growing reliance upon state pensions by an ageing population.”
Not surprisingly, more than one in ten Senior Startups say they’re more ambitious and motivated than when they were younger, which has attributed to their business achievements. Half say that their age and experience has been a key advantage, and 51% claim that hard work and commitment is what makes their business tick.
Confident enough to go it alone, many Senior Startups are inspired to take the plunge by family and friends or work colleagues, with television shows like Dragon’s Den having less impact in terms of influence - and freedom and happiness at work are much bigger motivators than making money.
Around a quarter claim they were frustrated working for someone else, more than a third say that their main ambition for their business is to keep it small and ‘niche’. And women are more likely than men to be prompted to start up on their own following a lifestyle change such as ill health, divorce or moving house.
While it’s not all plain sailing, a large proportion say that they’re happier working for themselves than they have ever been, and more than half say that the key piece of advice they would give to other over 50s would be to ‘go for it’.
To find out more about the study as well as advice and tips on setting up a business as a Senior Startup can be found at the site linked below.