Aging Means Business E-Newsletter, Fall 2012

Aging Means Business E-Newsletter

Volume 2, Number 2, Fall 2012

This quarterly e-newsletter explores the intersection of business and aging, highlighting articles and reports that address the enormous opportunity both for those looking to market to the 50+ demographic and for those aged 50+ who are self-employed or launching startup or traditional businesses.

I. Comments from our guest editor, Elizabeth Isele

Today's seniors, armed with 20 to 30 additional years of life, are turning to entrepreneurship by the millions. Their business start-ups are boosting job creation and stimulating economic self-reliance for themselves and their communities. In this issue of the Aging Means Business newsletter we highlight the power, promise, and best practices—programs, financing, policy, and research—of 50+ entrepreneurship as a new engine for economic growth in our nation.

-- Elizabeth Isele, Co-Founder, www.SeniorEntrepreneurshipWorks.org

II. Data and Trends

A. Kauffman Index of Entrepreneurial Activity: One fifth of new entrepreneurs in 2011 were older adults, according to a recent report from the Kauffman Institute. According to the study, an aging population and increasing rate of entrepreneurship among older ages has led to a rising share of new entrepreneurs (non-business owners who start a new business during the year) in the 55–64 age group. Furthermore, research shows that since 1996, Americans between the ages of 55 and 64 have had a higher rate of entrepreneurial activity than those aged 20-34.

B. Start-ups: Present and Future: A new study from CIBC World Markets on start-up activity in Canada reports that the fastest growing segment of the start-up market is the 50 and over age group. This group now accounts for close to 30 per cent of the total start-ups, more than double the rate seen in the 1990s.

C. When Baby Boomers Delay Retirement Do Younger Workers Suffer?: Although it sounds plausible that more work by older persons reduces the job opportunities for younger persons, research from the Center for Retirement Research at Boston College finds no evidence to support the notion that younger and older workers are engaged in a zero-sum game for a fixed number of jobs. In fact, the evidence suggests that greater employment of older persons leads to better outcomes for the young – reduced unemployment, increased employment, and a higher wage, even during the recent economic downturn.

III. Encore Entrepreneurship and Employment

A. Entrepreneurship Education: One Size Does Not Fit All: The Kauffman Foundation’s FastTrac® program has enhanced its core educational components for entrepreneurs by adding curricula tailored to women, U.S. military veterans, and baby boomers. In this The Huffington Post article, Alana Muller, president of Kauffman FastTrac®, explains how the program is reaching out to meet the need of specific audiences. To learn more about the FastTrac® NewVenture™ course specifically designed to help baby boomer entrepreneurs start up their businesses, click here.

B. Understanding the Older Entrepreneur: This International Longevity Center-UK report delves into whether entrepreneurship could be a valid continuing career option for those approaching state retirement age. The report provides answers to several key questions about senior entrepreneurship in the United Kingdom, including: How many older entrepreneurs are there? What motivates a person to become an entrepreneur? What will make older entrepreneurs retire, when they eventually do? How many businesses have older entrepreneurs been involved in starting? What are the characteristics that mark an older entrepreneur?

C. Crowdfunding: Maximizing the Promise and Minimizing the Peril: The Jumpstart our Business Startups (JOBS) Act, signed into law in April 2012, creates an exemption to current federal securities laws and registration requirements that could help to stimulate entrepreneurship by increasing the available pool of potential crowdfunding capital. Crowdfunding, which involves raising capital through the pooling of numerous and relatively small financial contributions and investments, is not a new concept. However, current U.S. federal securities laws permit only non-financial-return crowdfunding options on platforms such as Kickstarter and Indiegogo. The JOBS Act creates an exemption that would allow “emerging growth” companies to raise up to $1 million annually in capital directly from investors through securities crowdfunding platforms, without registering the shares with the Securities and Exchange Commission. In advance of the SEC’s statutory deadline of December 31, 2012 for issuing final rules and regulations implementing the JOBS Act, this report from The Milken Institute explores the challenges and opportunities associated with the new crowdfunding securities exemption.

D. Purpose, Passion, and a Paycheck in a Tough Economy: A study supported by the MetLife Foundation and Civic Ventures, illustrates how the current economy has affected encore career interest and plans for encore careers. Results show that boomers have tempered their expectations at the same time exhibiting resilience and an unwillingness to give up on efforts to create a better world for future generations. This research also found that more than 12 million Americans ages 44-70 want to start small businesses or nonprofits that create jobs and meet community needs. For a synopsis of research findings on encore entrepreneurs, click here.

E. The Coming Entrepreneurship Boom: This study, by Dane Stangler from the Kauffman Foundation, suggests that the United States might be on the cusp of an entrepreneurship boom—not in spite of an aging population but because of it. Factors predicting increased entrepreneurial activity as the baby boom generation moves into retirement include the shifting age distribution of the country, the continued decline of lifetime employment, the experience and tacit knowledge such employees carry with them, and the effects of the 2008-2009 recession on established sectors of the economy.

F. Building Businesses by Building Credit: With the continued challenge of poor credit quality stemming from the financial crisis, many microenterprise organizations are looking for new ways to serve clients who want to grow or start a business but are hampered by poor or nonexistent credit. This case study from the Aspen Institute's Field Center profiles the credit-building programs of two Vermont-based organizations (The Champlain Valley Office of Economic Opportunity and Central Vermont Community Action Council), and explores early learning around their experiences offering financial coaching combined with access to a secured credit card.

IV. Books

A. The Encore Career Handbook by Marci Alboher, 2012.

B. Just Start: Take Action, Embrace Uncertainty, Create the Future by Leonard A. Schlesinger, Charles F Kiefer and Paul B. Brown, 2012.

C. BoomerPreneurs: How Baby Boomers Can Start Their Own Business, Make Money and Enjoy Life by Mary Beth Izard, 2010.

D. The Second Chance Revolution: Becoming Your Own Boss After 50 by Edward G. Rogoff and David L. Carroll, 2009.

E. Elderly Entrepreneurship in an Aging US Economy: It's Never Too Late by Ting Zhang, 2008.

V. News & Events:

A. Encore Entrepreneurs: The U.S. Small Business Administration and AARP have launched a strategic alliance to provide counseling and training to entrepreneurs over the age of 50 who want to start or grow a small business. Through SBA's online training courses and its nationwide network of business mentors and counselors, the two organizations expect to train 100,000 "encore entrepreneurs," men and women over 50 who are starting or running a small business. To find out more information about encore entrepreneurs, visit this link on the SBA website.

B. Spotlight on Entrepreneurship Opportunities for Baby Boomers: This series of one-day meetings, organized by the Center for Productive Longevity, concludes at the University of Denver on November 15th, 2012. Among the topics to be covered are the risks and rewards of being an entrepreneur and how to identify potential business opportunities, develop business plans, and overcome the fears of starting a business. Topics for the breakout sessions will include creating a personal vision, exploring funding opportunities, and using networks of friends and colleagues. To register, click here.

C. Work Reimagined: AARP’s new social network-based jobs program for experienced workers leverages LinkedIn to deliver access to current job openings with the nearly 150 employers that have taken AARP’s Work Reimagined Pledge, committing to treat all employees equally regardless of age. The free website includes news, stories, advice, job postings, an interactive discussion board, and countless other features for employers and job seekers.

D. Google For Entrepreneurs: In celebration of its 14th anniversary in September 2012, Google officially launched the new “Google for Entrepreneurs” resource website, which includes acceleration and training programs and events worldwide that support startups and entrepreneurs of all ages.

The Aging Means Business E-Newsletter is a free quarterly e-mail publication. Click here to subscribe; To unsubscribe, send an e-mail to goneill@agingsociety.org.

Newsletter Editor: Greg O’Neill, National Academy on an Aging Society