PRIME Initiative

Fully 15 per cent of all new businesses in England and Wales are now started by people aged over 50, according to new research published by Barclays. But over a third (35 per cent) started a business because they had been made redundant, retired or were dissatisfied with their existing job.

The report “Third Age Entrepreneurs - profiting from experience” is based on telephone interviews conducted by Continental Research on behalf of Barclays Bank in April 2001. The sample consisted of business owners all currently over the age of 50 operating small businesses with a turnover of less than £1 million. Out of the 473 respondents, 400 were
aged over 50 when they set their businesses up, while the remaining 73 while over 50 now established their businesses when younger.

“Third age entrepreneurs” as the report describes them appear to be an expanding business sector. The number of businesses set up by the over 50s has gone up 50 per cent over the past ten years, and the trend is likely to continue as the proportion of over 50s in the UK population rises.

Redundancy emerges as the main reason for starting in business for 17 per cent of third age business owners, followed by the wish to make more money (16 per cent), retirement (11 per cent) and the freedom to be their own boss (11 per cent).

Developing a hobby into something that makes money or for enjoyment and fun, was the motivation for 10 per cent. So these are mostly not “lifestyle” businesses, but rather a means to make a livelihood.

Other stereotypes about older entrepreneurs were also untrue. For instance, the report found older business owners appear to own and use computers more than their counterparts who started in business when under 50 - 63 per cent compared with just 47 per cent.