Independent Banker - January 2019 - 52

We hear a lot these
days about the emerging
demographic dominance of
the millennial generation,
but something surprising is
happening among older age
groups: Those who remain in
the workforce represent a rising
share of new entrepreneurs.
In 2015, the Kauffman Foundation published data showing
that baby boomers were twice as likely as millennials
to be planning to start a new business. The Kauffman
Foundation's 2016 Index of Startup Activity showed that
individuals ages 55 to 64 make up 24.3 percent of all new
entrepreneurs, up from 14.8 percent in 1996. Likewise,
the SBA's Office of Advocacy reported in 2016 that selfemployment
among those ages 62 and up had increased
from 4.2 percent in 1988 to 5.4 percent in 2015.
What constitutes " older " among researchers is sometimes
restricted to baby boomers, but others include those 50 and
up, which dips into Generation X. The SBA has dubbed this
older population the " encore entrepreneurs, " or those who
start a business after lengthy careers.
There are a variety of reasons for the uptick in these
startups. Guidant Financial partnered with the Lending Club
to survey more than 2,600 of their customers about their
plans for starting businesses. They found that 43 percent of
respondents said they were motivated to be their own boss,
and 42 percent said they wanted to pursue a passion.
" They want to have more control versus working toward
someone else's dream, " says David Nilssen, cofounder and
CEO of Guidant Financial. " They want to own a business in
a space where they can make some money, but it also feeds
their lifestyle. "
That fits with what community bankers are seeing in
their older customers. " Expansion into entrepreneurship
brings them fulfillment, " says Mary Lynn D. Lenz,
president and CEO of $450 million-asset Foothills Bank
in Yuma, Ariz. " They take those years of experience and it
allows them to turn their passion into a business. "
Pedal to the metal
In the case of Ruben and Wendy Conde, two retired
government workers who are considering going into
business for themselves after age 50, the motivation is
to continue a family legacy. With the help of Ray Face, a
Foothills Bank senior commercial lender, they are preparing
a business plan that would enable them to buy the combined
convenience store and gas station in Sentinel, Ariz., about an
hour outside Yuma, that Ruben's 80-year-old parents own.
" My folks would like to pass on something to their
children-my family-and we'd like to see that come to
fruition, " says Ruben. " Ray gave us a list of what we needed
to do, what information the bank would need and how to
write out my business plan. "
Older entrepreneurs may find personal satisfaction in
starting their own business, but data shows they're also
more likely to find success. Research recently summarized
in the Harvard Business Review showed that the average
age of the people founding the highest-growth startups is
45. The probability of extreme startup success rises with
age, at least until the late 50s, the study found.
Older entrepreneurs have several advantages, primarily
their greater maturity and life experience. " We've faced a lot
of ups and downs in our lives, both personal and business, "
says Jeff Williams, CEO and chief coach for Bizstarters.com,
a company that specializes in coaching entrepreneurs over
50. " As a result, we don't panic in the ups and downs of the
business cycle. We've been there and seen it. "
" I'm battle-hardened, " agrees Klaus Fink, who bought
Anglers Port Marine, a marine dealership, at the age of
52. " I went through the 2007-2009 economy in a home
products company. I've laid people off and closed factories.
It was a nightmare, but I learned a lot. "
When Fink, who holds a doctorate in materials
science and spent more than 20 years in research and
development with Fortune 500 companies, parted with
his employer, retirement didn't figure in his plans. " I don't
do retirement, " he declares. Instead, he went looking for a
business to buy. Through a business broker, he connected
with Travis Beazley, an SBA loan manager at $900 millionasset
OakStar Bank in Springfield, Miss. And while Fink's
" Expansion into entrepreneurship brings them
fulfillment. ... It allows them to turn their
passion into a business. "
-Mary Lynn D. Lenz, Foothills Bank
52 Q ICBA Independent Banker Q January 2019
http://www.Bizstarters.com
Independent Banker - January 2019

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