NESTA research: the grey economy: Third age entrepreneurs critical to growth

3rd September 2009

The report reveals that Third Age Entrepreneurs are responsible for over a quarter of the companies set up in the UK in recent years.  It finds that entrepreneurs aged 50 -65 years, created 27 per cent of successful start up companies in the UK between 2001 and 2005. Over this period, more than 350,000 companies were set up, with Third Agers responsible for creating 93,500 companies and employing almost 400,000 people.

Start ups are often thought of as a young entrepreneurs remit - illustrated by success stories such as Google, Facebook and Innocent. However NESTA's report shows that experience is as valuable as the enthusiasm of youth - the companies which showed strongest growth were founded by a team of both young and older entrepreneurs.

The report shows that the UK has 122,300 'third age founders' responsible for successful start ups. 47,000 of these are 'solo entrepreneurs' - over 50's who have set up a company on their own.  Where a company was founded by a combination of young and over 50s entrepreneurs, the study showed that older founders were more actively involved in the business with 60 per cent responsible for wanting to form a team and 53 per cent having the original business idea.

The report found that Third Age Entrepreneurs are highly motivated by the desire to give something back to society and only half said they intended to retire after reaching 65 years old.  NESTA's report also found that third age entrepreneurs are just as happy to take risks as their younger peers. Many reported being less worried about their homes being repossessed as they have alternative forms of income from pensions, second jobs, other directorships and from property or investments.

Little difference was found in the sectors that younger entrepreneurs and those over 50 chose to start businesses in, challenging the belief that sectors such as high tech and creative industries are preferred by the young.

The research can be downloaded by visiting: http://www.nesta.org.uk/third-age-entrepreneurs/