They are the next generation of entrepreneurs

Take a moment to answer the following questions:

Which age group has the highest rate of entrepreneurial activity?
A: 55-64
B: 20-34
C: 35-50

Which age group has the lowest rate of entrepreneurial activity?
A: 55-64
B: 20-34
C: 35-50

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What is the average age of U.S.-born technology founders when they started their companies?
A: 25
B: 18
C: 39
 
If you answered A, B and C respectively, you aced this test. Next question: Were you surprised by the answers?

You shouldn’t be. In fact, twice as many men and women age 50 and older start tech companies than those age 25 and younger.

According to a 2009 study by the Ewing Marion Kauffman Foundation, more baby boomers than ever are starting second and third careers and hiring themselves to run the companies — so much so that AARP and the U.S. Small Business Administration have entered into an unprecedented partnership to help boomers become more successful as entrepreneurs.

“We’ve seen a growing percentage of the 55-64 age group trending toward entrepreneurship in the past 15 years,” said Jean Setzfand, AARP’s vice president for financial security. “Not only is the average age of entrepreneurs older, but the sustainability of their companies is higher. They’re having better success rates. We know that this is a good equation. So we set up this partnership to allow people who are thinking this through — in essence, kicking the tires — access to resources to help them think through the concept.”

Boomers are living longer, healthier lives and wanting to stay engaged and vital. Years of experience and knowledge make the more than 70 million Americans in the over-50 set well-positioned to become the next generation of entrepreneurs. In fact, 7.4 million American workers age 50 and up are self-employed.

A recent USA Today/Gallup poll found that 63 percent of U.S. adults plan on working during their retirement. While some of that may be attributed to the floundering economy, most claimed it was because they enjoy work.

Setzfand pointed to economic factors contributing to the trend. The recession saw unemployment numbers spiking, not just for boomers but across the board.

More importantly, there is a broader economic issue for the aging population in the shift in the way people are preparing for retirement. Traditional pension plans are extinct; employers are no longer setting money aside so that retirees can expect a lifelong check in the mail. The onus has been placed on the employee to save for retirement, and for many people those funds don’t add up to enough to live on. The need to work is greater. Entrepreneurship is the answer to economic issues and the desire to stay productive and find meaning in life.

The initiative between SBA and AARP officially launched on Oct. 2. The goal is to put 100,000 boomers in touch with the resources that can help them through the process of becoming a business owner, even if it’s just planting the seeds of entrepreneurship. AARP has plans for an online tool kit that will direct its users to SBA resources.

“Certainly people can go to their local SBA offices to access this information, but we’re providing a clearing house … to make finding this easier,” Setzfand said. “It also gives them the flexibility to work privately in their own homes or find a face-to-face meeting or educational opportunity.”