Encore Entrepreneurs Own Half of all U.S. Small Businesses
Think you’re too old to start a business?
You are never too old to set another goal or to dream a new dream. ~C.S. Lewis
Portions of this article are from the SCORE Entrepreneur Small Business Report 2021.
Encore Entrepreneurs Own Half of U.S. Small Businesses and Bootstrap With Personal Savings, Credit Cards and Retirement Funds (Score)
WASHINGTON, June 3, 2021 – People age 55+ make up 21% of the U.S. population, but own a disproportionately high 50.9% of U.S. small businesses, according to new survey data from 3,000 entrepreneurs published by SCORE, mentors to America’s small businesses.
An Encore Entrepreneur wants to be in control of their own destiny
The Megaphone of Main Street: Unsung Entrepreneurs data report quotes one encore (age 55+) entrepreneur who explained: “I wanted to be in control of my own destiny. I am an industry expert and this is a chance to put my 25+ years of experience to the test…I know I’m up for it!”
Encore entrepreneurs have an easier time securing business financing
Survey data reveals that encore entrepreneurs have an easier time securing business financing than younger entrepreneurs, but often choose not to use it. Encores were up to 62% more likely to receive non-government aid and 20-46% more likely to be approved for government aid. This aid includes PPP loans, unemployment insurance and other sources of federal/state financial assistance, compared to younger business owners.
Instead of capitalizing on these funding opportunities, many prefer to rely on personal finances, including savings (74% of encore entrepreneurs) and credit cards (36.6%). They are also 52.3% more likely to finance their business using retirement savings, compared to younger groups.
Encore entrepreneurs typically bootstrap their businesses
An encore entrepreneur commented: “I never borrow outside money. I only rely on customer sales to expand business. I do not want access to easy money because I don’t want to owe anyone. To me, debt means you are working for someone else and feels like a burden.”
The COVID-19 pandemic has created extremely challenging conditions for U.S. small business owners, with nearly 72% of encore entrepreneurs feeling unsupported by local government and less than half (48.9%) feeling supported by their local communities. (https://www.multivu.com/players/English/8905351-score-older-entrepreneurs-small-business-report/)
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