Golden oldies swap pipe and slippers for a nice little start-up

Older entrepreneurs have increased by 50 per cent in the past decade, with over one in six UK start-ups founded by people over 50.

Research released today from Barclays Bank shows that 15 per cent of all new businesses in England and Wales are founded by those over 50. Twenty-something dot-com visionaries may turn over more money, but the new breed of older entrepreneur is more likely to be a well educated, technically savvy professional.

While 51 per cent of younger entrepreneurs came from manual and clerical backgrounds, 49 per cent of those over 50 had backgrounds in management and teaching. Only 26 per cent of old age entrepreneurs previously worked in low-skilled jobs.

Because of their previous experience, older entrepreneurs were more likely to start up businesses in finance, property and professional services. Just 10 per cent opted to move into sectors like retail - an area that attracted 20 per cent of younger entrepreneurs.

Older entrepreneurs also proved to be more computer literate than their younger counterparts. Over 71 per cent of the over fifty group said they owned and used computers in their businesses compared with 47 per cent of under 50s.

However, four out of 10 older respondents saw their businesses simply as a way of supplementing pension income and planned to close them down when they retired.

Alex Connolly, director of small businesses with Barclays Bank, said this was a trend the bank would work to rectify.

"It's a shame that happens. There is a lot of wealth tied up in these businesses and we need to support and encourage them to keep their business going. They're just not thinking as commercially as young people," he said.

Stephen Upstone, a director with high-tech venture capital group FirstStage Capital, said that even in the technology sector ageism was slowly disappearing.

"We haven't seen a huge number of over-50s in IT, but over the last year the age of entrepreneurs has risen as the serious management teams stick around," he said.

For related news see:
Ageism: Who's over the hill now then?
http://www.silicon.com/a46534
Model Management: A tale of entrepreneurial persistence
http://www.silicon.com/a44986
German workers over the hill at 40
http://www.silicon.com/a46524
Ageism in IT: silicon investigates
http://www.silicon.com/a39437