Senior entrepreneurs on the rise
Anyone founding a start-up today does not necessarily have to be young to do so: A study by the University of Applied Sciences Northwestern Switzerland shows that the proportion of senior entrepreneurs is on the rise. One in four company founders today is over 50 years old.
Becoming self-employed is popular in Switzerland - but by no means only among young people. The number of start-ups is also increasing in the 50+ age group. The University of Applied Sciences Northwestern Switzerland FHNW now wanted to know who these new senior entrepreneurs are and conducted a survey of companies founded between 2014 and 2019. A key finding of the survey: over the past 20 years, the proportion of founders who were already 50 years old or older when they started their own business has increased steadily. Today, one in four founders is already 50 or older when they become self-employed - twenty years ago, it was only one in six.
Senior entrepreneurs: experience as an advantage
Are there differences between "real" young women entrepreneurs and so-called senior entrepreneurs? And if so, what are they? The written survey of a good 300 start-up people did indeed reveal some clear differences between the younger and older self-employed. On the one hand, the older age is reflected in the previous experience and the existing network. Senior entrepreneurs have significantly more professional, managerial and industry experience. In addition, significantly more senior than junior entrepreneurs had previously been self-employed. Overall, the founders 50+ rate their knowledge in almost all areas as higher than their younger colleagues. On the other hand, younger founders are somewhat ahead of senior entrepreneurs in the areas of marketing and customer acquisition, especially in the keywords sales and social media. Here, the older founders rate themselves as less fit.
Many consulting companies
The greater experience of senior entrepreneurs is also reflected in the fact that they are much less likely to call on support in their environment, such as acquaintances, relatives or reference persons from school and university. On the contrary, many senior entrepreneurs immediately turn their many years of experience and relationships into a business model. The proportion of consulting companies founded by people 50+ is correspondingly high, namely around one third. They usually do this alone, without employees. The companies of the 50+ group are somewhat smaller from the start and grow less strongly in terms of employees than their younger colleagues. Thus, 50% are still one-person companies without employees after 3.5 years, compared to 40% among the younger founders.
Economically welcome trend
An important motive for the 50+ generation to take the step into self-employment is unemployment that has occurred or is imminent. According to the FHNW study, it is not surprising that only 25 % of senior entrepreneurs believe that they will be able to find a job again, compared to 64% of the younger age group.
According to the study authors, the trend toward late self-employment is positive for the national economy. This is because it makes sense that the knowledge, skills and experience of well-educated people with a track record (many years of industry, professional and management experience) would benefit not just one company, but various companies. According to one of the study's recommendations for action, society and universities should respond to this trend accordingly and increasingly offer support services for this group.
Source: University of Applied Sciences Northwestern Switzerland
