The article “Enterprising Oldies” from The Economist challenges the notion that founding new businesses is the exclusive domain of the young, highlighting the increasing entrepreneurial activities among older individuals. Leonard Cohen, a true entertainer till his death, exemplifies this trend, continuing to perform and release acclaimed music well past retirement age.
Historically, youth dominated the entrepreneurial landscape, especially in the 1960s pop culture. Today, however, age is no longer a barrier, with older musicians like The Rolling Stones and Bob Dylan active and successful beyond the perceived retirement age of 65. Similarly, in business, the tech boom has spotlighted young entrepreneurs like Mark Zuckerberg, Elon Musk, and many others, but older entrepreneurs are equally impactful. For instance, Mark Pincus founded Zynga at age 41, and Arianna Huffington created the Huffington Post at 54. An interesting topic as researched by “Ageing Greatly,” which found 22 entrepreneurs who started after the age of 50.
Research by Vivek Wadhwa and the Kauffman Foundation reveals that older entrepreneurs often outperform their younger counterparts. The average age of founders of successful American tech companies is 39, with those over 50 and 60 achieving notable success. Experience, which increases with age, is crucial for business success, providing valuable skills in hiring, sales, and innovation. Studies show that the most significant innovations by Nobel laureates in the sciences are happening later in their careers.
The article emphasizes that creativity and experience are not mutually exclusive. Many successful ventures were initiated by older individuals, such as Ray Kroc of McDonald’s and Colonel Harland Sanders of KFC. Bill Gates transitioned to philanthropy in his late 30s, and Steve Jobs continued to innovate at Apple in his later years.
The rise of young entrepreneurs is significant, driven by the collapse of barriers that once discouraged youth from starting businesses. However, this does not imply new obstacles for older entrepreneurs. The entrepreneurial landscape is now inclusive of all ages, offering opportunities for both young and old to create fast-growing businesses.
In conclusion, the trend of older individuals becoming more entrepreneurial could alleviate concerns about economic sluggishness due to an aging population and the financial challenges faced by older workers. Leonard Cohen’s return to music after financial ruin exemplifies how older individuals can find renewed purpose and success through enterprise, a sentiment that resonates with the aging baby boomer generation facing economic pressures.
References
“Enterprising Oldies.” The Economist, February 25, 2012.
Footnotes
1. Cohen, Leonard. “Old Ideas.”
2. Wadhwa, Vivek. Study on American high-tech and engineering companies.
3. Stangler, Dane. Kauffman Foundation studies on entrepreneurial activity.
@chatGPT
Eugene Van Den Berg
Eugene is an accomplished Analyst, Accountant, Controller, CFO, and Corporate Finance expert with many years of diverse finance and accounting experience across different industries and with different companies, including non-for-profits. He is a knowledge- and information worker with a passion to solve complex financial management problems and financial reporting processes. Eugene is passionate about finance and economics. He enjoys blogging about interesting economic aspects of current times. He also enjoys following how politics interjects with finance, economy and statistics. Future academic ambition includes enrolling for a PhD in Economics (for the fun of it!).