Over 50s Startups Contribute £24.4 billion

You’ve heard of the silver surfers who are increasingly at home on the internet, well now according to new research by Yellow Pages, the ‘senior startup’ is on the rise and contributing £24.4 billion to the UK economy.

The research, analysed by Kingston University’s Small Business Research Centre, identified that one in six new businesses are started up by people over the age of 50.  Key findings include:

– Senior Startups turn over an average £67,500 per year and tend to work alone, from home;

– Most Senior Startups (61 per cent) regret not having set up on their own earlier in life, with 44 per cent 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 – more than two thirds (71 per cent) 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 per cent 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 per cent), obtaining a better work/life balance (29 per cent) and not wanting to work for someone else (24 per cent).

Commenting on the research, Mark Hart, professor of small business research at Kingston University said:

This research adds greatly to our knowledge of the over 50s’ contribution to enterprise in the UK.  There is 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.

An interesting sector to watch.  With so many people living a lot longer, starting a business in your 50s leaves you ample time to find that exit strategy, before you reach that big exit strategy in the sky!