A Guide to Starting a Successful Business After 50 – Kiplinger

Report on Senior Entrepreneurship and its Alignment with Sustainable Development Goals

Executive Summary

A significant trend has emerged wherein individuals aged 50 and over are increasingly engaging in entrepreneurship. This report analyzes the factors contributing to this phenomenon, the high success rates observed, and the strategic approaches for sustainable business creation. A primary focus is placed on how this trend aligns with and advances several key United Nations Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), SDG 10 (Reduced Inequalities), and SDG 4 (Quality Education).

The Rise of Senior Entrepreneurship and its Economic Impact (SDG 8)

Statistical Overview

Recent data indicates a substantial increase in business creation by older demographics, contributing directly to economic vitality.

• According to the Kauffman Foundation, nearly one-fourth of all new businesses are now initiated by founders between the ages of 55 and 64, a notable increase from 15% two decades prior.
• The U.S. Census Bureau reports that individuals aged 55 and older own more than half of all small businesses in the nation.
• Research demonstrates a higher probability of success for older entrepreneurs; a founder at age 50 is twice as likely to succeed as a counterpart at age 30.

Contribution to Decent Work and Economic Growth

Senior entrepreneurship is a powerful driver for achieving the targets of SDG 8 (Decent Work and Economic Growth). By creating new ventures, older individuals are not only generating income for themselves but are also fostering economic activity and potentially creating employment opportunities for others. This extends productive careers, provides supplementary income in retirement, and promotes inclusive and sustainable economic growth.

Key Drivers of Success for Older Entrepreneurs

Leveraging Experience for Innovation (SDG 9)

The success of senior entrepreneurs is largely attributed to their accumulated professional capital, which aligns with the principles of SDG 9 (Industry, Innovation, and Infrastructure).

1. Industry Experience: Deep-seated knowledge allows for the identification of unmet market needs and opportunities for innovation. A Gusto survey found that 44% of older founders started a business specifically to address a new opportunity they identified.
2. Financial Returns: This experience translates to greater profitability. Research shows Baby Boomer founders earn an average of $60,000 in their first year, significantly more than younger generations.
3. Established Networks: Decades of professional life result in strong business networks, existing client relationships, and established credibility, which are invaluable assets for a new venture.

The Role of a Professional “Brain Trust”

Successful entrepreneurs often establish a circle of trusted advisors to provide guidance and fill knowledge gaps. This network acts as a crucial support system for validating business ideas and operationalizing strategies. Organizations such as SCORE and the Small Business Administration (SBA) offer mentorship and resources, further strengthening the support infrastructure for these new enterprises.

Strategic Pathways to Sustainable Enterprise

The Phased-Launch Model

To mitigate financial risk, a recommended strategy is to launch a new venture as a “side hustle” while maintaining existing employment. This approach provides a financial safety net and allows for a period of testing and validation before committing fully. This cautious, sustainable approach ensures that personal financial stability, a cornerstone of SDG 1 (No Poverty), is not compromised.

Prudent Financial Management

Experts advise against leveraging retirement savings, such as 401(k) funds, to finance a new business due to the inherent risks. Instead, the focus should be on:

• Building a robust emergency fund before launch.
• Maintaining separate bank accounts and credit cards for the business.
• Developing a realistic financial plan for the first one to three years, accounting for expenses, revenue, and potential profits.

Empowering Entrepreneurs through Education and Technology (SDG 4 & SDG 9)

Bridging the Digital Divide

Embracing technology is critical for modern business success. This supports SDG 9’s focus on technological upgrading and innovation. Key tools include:

• Digital Presence: Establishing a professional website, a LinkedIn profile, and a dedicated business email account.
• Financial Technology: Utilizing online payment services like PayPal and Venmo to streamline transactions.
• Artificial Intelligence: Using AI tools like ChatGPT or Google Gemini to assist with tasks such as marketing, data analysis, and communication, thereby increasing efficiency.
• Crowdfunding: Using platforms like Kickstarter or GoFundMe to raise capital and validate market interest without draining personal savings.

The Impact of Lifelong Learning

Continuous education is vital for adapting to new technologies and business practices, directly supporting SDG 4 (Quality Education). Organizations like Older Adults Technology Services (OATS) provide free technology courses that empower senior entrepreneurs with digital literacy, granting them greater autonomy and enhancing their business management capabilities.

Social Impact and Contribution to Reducing Inequalities (SDG 10)

Combating Age-Based Inequality

Entrepreneurship offers a viable and empowering path for individuals who may face ageism in the traditional workforce. A Gusto survey noted that one-fourth of entrepreneurs aged 55 and older started their businesses following a job loss. By creating their own opportunities, they challenge age-related barriers to employment, contributing to the mission of SDG 10 (Reduced Inequalities).

Case Studies in Empowerment

The experiences of entrepreneurs like Lorena Jiron, who launched a life-coaching business at 70, and Noelle Boyle, who built a successful franchise after being laid off, demonstrate how late-stage entrepreneurship can provide a renewed sense of purpose and financial independence. These ventures empower individuals, particularly women, aligning with the objectives of SDG 5 (Gender Equality) by fostering economic self-reliance.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth

   The article’s core theme is entrepreneurship, small business creation, and generating income for individuals over 50. This directly relates to promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

2. SDG 10: Reduced Inequalities

   By focusing on the economic empowerment and success of older individuals (ages 50, 55-64, and beyond), the article addresses the issue of age-based inequality. It presents entrepreneurship as a viable path for economic inclusion for a demographic that may face challenges, such as ageism or job loss, in traditional employment.

3. SDG 4: Quality Education

   The article highlights the importance of lifelong learning and acquiring new skills for older entrepreneurs. It specifically mentions training programs that help them adapt to modern business needs, such as technology and digital tools, which is central to ensuring inclusive and equitable quality education and promoting lifelong learning opportunities.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8: Decent Work and Economic Growth

   • Target 8.3: “Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises…”
     
     The entire article is an exploration of this target, detailing a trend where a significant portion of new small businesses are started by older individuals. It discusses the factors that lead to their success and the support systems available, such as SCORE and the Small Business Administration (SBA).
   • Target 8.5: “By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value.”
     
     The article addresses this target by focusing on a specific age demographic (50+) and demonstrating how they achieve productive employment through entrepreneurship. It notes that older entrepreneurs often achieve higher first-year earnings (“Baby Boomers… take home $60,000, on average, in their first year”) than their younger counterparts, highlighting their capacity for productive and well-compensated work.

2. SDG 10: Reduced Inequalities

   • Target 10.2: “By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age…”
     
     The article directly supports this target by showcasing the economic inclusion and empowerment of older adults. It provides statistics like “nearly one-fourth of new businesses have been started by founders between the ages of 55 and 64,” illustrating a clear trend of increased economic participation by this age group through entrepreneurship.

3. SDG 4: Quality Education

   • Target 4.4: “By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.”
     
     This target is identified through the story of Lorena Jiron, 70, who took “courses from Senior Planet” to become comfortable with “AI tools, digital payments, cybersecurity and social media that now help her manage and promote” her business. This is a direct example of an adult acquiring relevant technical skills for entrepreneurship.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 8 (Decent Work and Economic Growth)

   • Proportion of new businesses started by older adults: The article states, “nearly one-fourth of new businesses have been started by founders between the ages of 55 and 64, up from 15% two decades ago.” This is a direct quantitative indicator of entrepreneurship within this age group.
   • Ownership of small businesses by age: The U.S. Census Bureau data cited in the article reports that “more than half of small businesses are owned by people 55 and older,” serving as an indicator of the economic contribution of this demographic.
   • Success rate of entrepreneurs by age: The article mentions that “people launching a business at age 50 are twice as likely to succeed as their 30-year-old counterparts,” which can be used as an indicator of productive employment.
   • Income level of new entrepreneurs by age group: The statistic that “Baby Boomers using its platform take home $60,000, on average, in their first year of operation” is a clear indicator of decent and profitable work.

2. Indicators for SDG 10 (Reduced Inequalities)

   • Rate of entrepreneurship due to job loss among older adults: The article notes that “One-fourth of entrepreneurs age 55 and older in the Gusto survey started their businesses due to job loss.” This implies that entrepreneurship serves as a pathway for economic re-inclusion for those potentially excluded from the traditional workforce due to age.

3. Indicators for SDG 4 (Quality Education)

   • Participation of older adults in skills training for entrepreneurship: While not providing a number, the article gives a qualitative indicator through the example of Lorena Jiron and the mention of programs like Senior Planet, which offer “a series of free technology courses for older entrepreneurs.” The existence and use of such programs measure progress toward providing lifelong learning opportunities.

4. Table of SDGs, Targets, and Indicators

Source: kiplinger.com