ECONOMY

The Age of Ageless Entrepreneurship

Colonel Harland Sanders founded KFC at the age of 65 after several business ventures and jobs. Arianna Huffington co-founded The Huffington Post at the age of 55 and Lynda Weinman co-founded Lynda.com, an online learning platform, at the age of 52.

The entrepreneurial landscape for older adults is rich with opportunities and challenges, yet it is often hampered by outdated and disproven conceptions that entrepreneurship is only for young people. In reality, entrepreneurship later in life can be a much needed alternative to retirement. It helps address ageing populations and shrinking workforces by tapping into the vast experience and expertise of older adults, fostering innovation and driving economic growth. By leveraging their experience, networks and resilience, older visionaries can thrive as entrepreneurs. Governments, support systems and inclusive policies can further cultivate a diverse and innovative entrepreneurial ecosystem.

We discussed the entrepreneurial landscape, mindset and opportunities with Anat Lechner Business Professor at Stern, NYU and Founder of Huedata, Professor Colin McLeod, Executive Director of the Melbourne Entrepreneurial Centre at The University of Melbourne, and Paul Coyle, Director at Entrepreneurial Mindset Network.

"Older entrepreneurs tend to be more experienced and in some instances have more degrees of freedom to experiment now that many life-responsibilities weigh less heavily in their lives (raising kids, paying mortgages etc.). Creating inclusion opportunities for older entrepreneurs can benefit business and business partners. This includes advantages such as mentorship, innovation, possible tax breaks and tapping into a deep pool of smart, motivated people and extensive networks."

Anat Lechner

What are the unique challenges and opportunities for older entrepreneurs?

Anat Lechner, Business Professor at Stern, NYU and Founder of Huedata: Traditionally we've lived with ideas of retirement age and pensions, but these are losing their relevance. Life expectancy increases, financial comfort at retirement age decreases, people have multiple careers instead of just one, the ability to act entrepreneurial in the world has changed with the arrival of the internet, the arrival of Application Programming Interfaces (APIs) and the ability to collaborate with many partners online. In short, entrepreneurship becomes ageless.

Older entrepreneurs tend to be more experienced and in some instances have more degrees of freedom to experiment now that many life-responsibilities weigh less heavily in their lives (raising kids, paying mortgages etc.). Creating inclusion opportunities for older entrepreneurs can benefit business and business partners. This includes advantages such as mentorship, innovation, possible tax breaks and tapping into a deep pool of smart, motivated people and extensive networks.

Colin McLeod, Executive Director of the Melbourne Entrepreneurial Centre at The University of Melbourne: I think there are a few challenges. The first is the perception that successful entrepreneurs are all people in their 20's. This is a myth, and in fact, extensive research in the US by the National Bureau of Economic Research shows that the average age of a successful founder is 44 at the time they start their business, so they are generally in their 50's by the time the new venture is successful. Even in the deep tech world of Silicon Valley, the average age at the time of founding the venture is late 30's.

The second challenge is risk. For many people, they only feel financially secure later in life, so their willingness to take on the risk of starting a new venture can be diminished. And it's not just financial risk, there is personal reputational risk as well.

As far as opportunities are concerned, older people can often have access to the type of resources that help new ventures succeed. For example, access to funding, experience in management, access to relevant networks (such as subject matter experts that can advise the new ventures) and expertise in a particular industry. About 70% of successful startups are based on the industry knowledge of a founder.

Paul Coyle, Director at Entrepreneurial Mindset Network: There are often stereotypes that older entrepreneurs must overcome. Traditional ideas of a retiree might discourage them from continuing their economic activity, while employers' biases against older workers can undermine the sense that they still have something to offer. Additionally, a lack of inspiring role models for disadvantaged groups can diminish their belief in what is possible. However, the entrepreneurial mindset, with its can-do attitude, provides me with tremendous encouragement.This mindset empowers individuals to stay motivated and find ways to continue making a meaningful contribution.

"Many countries have simplified the process of registering a new business and there is a vast amount of support available online, giving a growing number of older individuals the opportunity to remain active and engaged in the world of work."

Paul Coyle

What is the entrepreneurial mindset, and how does it relate to older individuals?

Paul: The entrepreneurial mindset is the way of thinking and acting that enables entrepreneurs to be successful. Increasingly, this entrepreneurial can-do attitude is something that employers want to see in their employees. In fact, an entrepreneurial mindset is now seen as increasingly valuable to employees in the private, public and not-for-profit sectors.

When employees reach the age at which they can retire, some will choose to stop working, whilst others will want to explore their options to continue earning an income. As people are living longer and the cost of living continues to rise, a pension may be insufficient, and some people will have no choice but to keep working.

The age of retirement no longer means that everyone will stop working. On a positive note, this can be exactly the right time for people to start their small business, taking advantage of their life-long work experiences and professional networks. Many countries have simplified the process of registering a new business and there is a vast amount of support available online, giving a growing number of older individuals the opportunity to remain active and engaged in the world of work.

How does prior experience contribute to entrepreneurial success?

Anat: My experience as a business professor and management consultant has provided me with a comprehensive understanding of business management, leadership challenges, innovation, industry disruption and the critical role of vision. This background has deepened my appreciation for the complexities involved in translating theoretical ideas into practical applications. I've learned the importance of conceptualising, strategising and structuring initiatives to achieve desired outcomes, as well as the resilience required to adhere to one's vision.

Moreover, my experiences have highlighted the distinct difference between knowing what to do and knowing how to do it. I recognise the need for operational expertise—qualities typically found in a COO—as well as the necessity for high-performing team members.

How can we foster a more inclusive entrepreneurial ecosystem for older entrepreneurs?

Anat: Generally speaking I think the concept of age needs to be dropped altogether but as a bridge between now and that envisioned state, VCs can implement policies that explicitly include age as a factor in diversity targets, ensuring that a certain percentage of their investments go towards businesses led by older entrepreneurs. Incubators, likewise, can encourage diversity in entrepreneurship, promoting successful older entrepreneurs as role models and pairing different age brackets together against innovations, ideas and opportunities.

Colin: I think the most obvious way in which the government can and does affect innovation and early ventures is through the taxation system. I also think in Victoria (Australia) we have seen the significant impact of entities like LaunchVic which has supported the development of start-up infrastructure like accelerators/incubators, angel funds and training, as well as their own venture funds focused on important but previously largely unsupported areas like female founders and agriculture; more recently, we have seen the emergence of Breakthrough Victoria Fund to support the commercialisation of research that comes out of our universities and research institutes.

Paul: Our network explores the application of the entrepreneurial mindset in business, healthcare, higher education and social entrepreneurship. Each website includes inspiring stories from people all over the world on a wide range of topics and every aspect of the entrepreneurial mindset.

Intergenerational co-founding teams are becoming more common. From your experience, what are the benefits and challenges of having co-founders from different age groups?

Colin: I think you can sum it up as the value of different experiences and complementary skills. As an example, the tech industry has been under a lot of pressure in both public and private markets in the last few years, and many people in the entrepreneurial world, including founders and investors, haven't been through a downward trend in the business cycle before, whereas older team members have lessons learned from previous experiences. On the other hand, in a global market for talent, young people are much more likely to be linked to ‘hot’ professions like AI, software engineering and business analytics in their most advanced form. They can find talented individuals who are willing to take on the challenges of being involved in a startup, despite the attractions of working for one of the big tech companies.

We also see situations where an older founder has direct and relevant experience in a particular market or industry, while the younger founder has the expertise to build the product or service aimed at that market. I would emphasise the importance of 'direct and relevant' experience; for example, simply growing older doesn't make someone an expert in the ageing market, anymore that driving a car makes some an expert in the automotive market.

"The most critical thing is to just start. Almost 100% of the population have thought about starting a new venture, but only a very small percentage actually do it. There are always exceptions, but we would say that most successful entrepreneurs start with a problem and see if they can develop a solution people will pay for."

Prof. Colin McLeod

How does entrepreneurship impact the well-being and quality of life for older individuals?

Paul: There are many benefits from embracing entrepreneurship later in life. Running your own business can definitely have a positive effect. It is intellectually challenging and mentally stimulating. Interacting with suppliers and customers can be good for your emotional state. It is tremendously rewarding to still feel useful and valued. People can continue to work long past the traditional retirement age, striking a better balance between the demands of work and the enjoyment of life.

However, starting and running a business can also be challenging. There are obstacles to overcome, setbacks and disappointments to deal with, and possibly even failure. All these potential negatives can however be turned into a positive by seeing these experiences as an opportunity to continue one's life-long learning. Indeed silver entrepreneurs have so much experience and life lessons that they can share.

What advice would you give to aspiring entrepreneurs?

Anat: Resilience is key: The path of entrepreneurship is fraught with challenges and setbacks. Bouncing back from failures and maintaining persistence is crucial. Staying focused on the vision and the high-level goal is intertwined with staying resilient.
Adaptability: Being flexible and open to change is vital. Entrepreneurship tests your ability to handle the unknown, the path less travelled and the ability to learn quickly, course-correct, and stay dynamic on tactical decisions while all-along stay committed to the vision - these together create a nice positive tension that pulls you into your desired future with a sense of fun and adaptability.
Networks matter: Building and maintaining a strong professional network is so critical to have the support, insight and opportunities needed to make it. Often, the strength of the relationships can be as important as the business model.

Colin: Raising capital is hard work, and most founders significantly underestimate the amount of time involved. Most people think about venture capital when they think about startups, and in most cases, it can take six months and dozens of meetings to raise funds. More broadly, there are many forms of funding available to founders, and whether it is funding from savings, getting a loan or maxing out a credit card, the most important investment is time to learn the funding options available, the pros and cons of each form of investment, and the devil is well and truly in the detail.

But the most critical thing is to just start. Almost 100% of the population have thought about starting a new venture, but only a very small percentage actually do it. There are always exceptions, but we would say that most successful entrepreneurs start with a problem and see if they can develop a solution people will pay for. I would add that many unsuccessful entrepreneurs jump too quickly from the problem to a solution, without fully understanding the problem from the perspective of the customer. We think Einstein’s advice is very relevant to entrepreneurs: “If I had an hour to solve a problem to save the world, I would spend 55 minutes understanding the problem and 5 minutes working on the solution”.

Paul: The many challenges that humanity faces will only be solved through greater innovation and more sustainable use of resources. The solutions will only be found by capitalising on the ideas of people of all ages, cultures and backgrounds. To do this we must recognise the severe inequalities that exist in society and try to gain a greater understanding of the importance of diversity, equality and inclusion. The entrepreneurial mindset tells us that every individual has a valuable and important contribution to make in the world. This should inspire each of us to want to make our own contribution and also to encourage everyone around us to do the same.

We all have ideas about how the world could be better, the problems that need to be solved and the opportunities that are wasted. We ask ourselves “why is nobody doing anything to solve all this?” The entrepreneurial moment is when you turn that question back on yourself and you ask yourself what am I going to do? The opportunities to make your contribution, to continue to learn, to make a real difference can last a whole lifetime and they don't stop just because you are older or retired.
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By learning from these insights and experts, how can we pave the way forward to ensure change in this space? Here are some thought-provoking questions to consider how we can encourage more entrepreneurship later in life and the systems, programs and infrastructure required:

How can educational institutions adapt their programs to better support lifelong learning and entrepreneurship for older adults?

What economic impacts could a rise in entrepreneurship later in life have on local and national economies?

How can governments and private sectors collaboratively create environments that are conducive to silver entrepreneurship?

Anat Lechner is a Clinical Professor of Management and Organizations at NYU Stern. Professor Lechner's research focuses on how organisations can best structure to develop innovation capabilities and outcomes. Her current work looks at the complexities of managing high performance cross-functional teams, and the ways in which physical workplace environments enable organisation members to cope with uncertainty, change and the demand for increased innovativeness.

Colin McLeod is a Professor in the Faculty of Business & Economics at the University of Melbourne and the Executive Director of the Melbourne Entrepreneurial Centre. He was awarded the title of Enterprise Professor in 2016 for his contributions to industry and academia. He has served as a Director, Investor, and Co-founder of multiple early-stage companies spanning retail technology, wireless technology, employee management, aged care and wearable biotechnology. These companies have collectively secured over $75 million in venture capital funding and have expanded their presence to the US, Europe, Asia and the UK.

Paul Coyle is the Founder and Director of the Entrepreneurial Mindset Network, a global community of practice headquartered in France with members in 107 countries. His mission is to inspire people in all walks of life to adopt an entrepreneurial mindset so that they can make their unique contribution to the world. He is an expert in the entrepreneurial mindset, innovation, entrepreneurship, leadership and organisational change. He provides consultancy support for higher education institutions and also expert advice to organisations responsible for economic, social and cultural development.