What do others think of people in their 40s, 50s, or 60s starting a business?
Based on a paper by Pierre Azoulay and J. Daniel Kim of the Massachusetts Institute of Technology Sloan Northwestern University’s Kellogg School of Management and Javier Miranda of the Census Bureau’s Center for Administrative Records Research.
Most of the Successful Entrepreneurs are Older Adults
Unlike many investors and capitalists presume, we realized that age forecasts success, they mentioned. “The highest success rates in entrepreneurship come from founders in middle age and beyond.”
Falsify the Conventional Wisdom
“Many observers, and many investors, believe that young people are especially likely to produce the most successful new firms. We use administrative data at the U.S. Census Bureau to study the ages of founders of growth-oriented start-ups in the past decade and find no evidence to suggest that founders in their 20s are especially likely to succeed. Rather, all evidence points to founders being especially successful when starting businesses in middle age or beyond, while young founders appear disadvantaged,” stated the paper’s authors.
I was downhearted because they didn’t tease out information about gender (more on that shortly) while the authors divided their experimentation by geography, industry, and age. The study researchers estimated average age of 45 among the 1700 founders of the skyrocketing new ventures. They also figured out that the “batting average” for laying the foundation of successful firms increases with age. They mentioned: “a 50-yar-old founder is 1.8 times more likely to achieve upper-tail growth than a 30-year-old founder.”