How come so many seniors are starting their own businesses?
After retirement, many seniors may find it challenging to find a good position, so they create their own position. However, this is not the case for all seniors. As a matter of fact, this is just a minor reason.
According to AARP, the primary motivation for men to become entrepreneurs is the desire to run their own business and be their own boss, while women generally start a business to follow their deep-seated interests and passions. Apart from this general reason, seniors may start a business because they feel unhappy with the job market or reluctant to retire.
There’s a misconception about aging that older people are burdens on society. Some refer to our aging population as a “silver tsunami.” Perhaps it has escaped their attention that older entrepreneurs contribute over $120 billion to federal and government programs each year, which reduces reliance on government benefits, not to mention their high amount of contributions to state and local taxes.
Also, older entrepreneurs tend to stay in business longer than the younger generation. Compared with their younger counterparts, 70 percent of ventures created by older entrepreneurs are still in operation after five years. The power of the experience is evident in this satisfying number.
Money is also a powerful driving force. In the 2008 recession, older adults lost the most investment money, and many postponed retirement. The best possible option to gain back their financial stability was starting a business.