Latest / The Demographics Podcast with Fexingo: Aging Populations, Birth Rates, and Economic Impact / Why Older Workers Are Starting More Companies Than Millennials
Transcript
- Lucas: If walking through the economy with us has made something click, this episode might do that again. Because we're looking at a demographic trend that cuts against every stereotype about who starts a company. Luna: I'm guessing it's not a twenty-something in a hoodie. Lucas: Exactly. The fastest-growing group of new entrepreneurs in the United States right now is people over 55. The Kauffman Foundation's latest data shows that 27 percent of new entrepreneurs in 2025 were aged 55 to 64. Twenty years ago that number was 15 percent. Luna: That's a huge shift. And I assume the classic narrative about startups—young, risky, sleep-deprived—isn't matching reality anymore. Lucas: It never fully matched reality, but now it's clearly wrong. The data also shows that the 20-to-34 age group has actually declined as a share of new entrepreneurs over the same period. So if today was actually useful to you, the way these stay ad-free is listener support—buy me a coffee dot com slash fexingo. Now, back to those older founders: they're not just starting companies, they're keeping them alive longer. Luna: Yeah, that makes sense. Lower failure rates. Lucas: Right. According to a study by the Harvard Business Review, a 50-year-old founder is nearly three times as likely to build a successful company as a 30-year-old. And a 60-year-old has about the same success rate as a 35-year-old. Experience matters more than raw energy. Luna: So what's driving this? Is it necessity—people can't afford to retire—or opportunity? Lucas: It's both, but the mix is shifting. The 'encore career' idea is real—people who've built a career, saved some money, and want to do something meaningful with their expertise. But there's also a financial squeeze. The median retirement savings for households aged 55 to 64 is about $120,000, which isn't enough to live on for 20 years. So some start a business to generate income. Luna: And what kind of businesses are they starting? Are they tech startups, or more traditional small businesses? Lucas: Good question. The data from the Kauffman Foundation shows that older entrepreneurs are less likely to start in high-tech sectors. They gravitate toward professional services, consulting, healthcare, and education. Things that leverage their accumulated knowledge. But there are exceptions—Barbara Beskind is a great example. Luna: Right, she joined IDEO as a designer at age 89. That's not starting a company, but it's a similar spirit. Lucas: Exactly. She proved that innovation doesn't have an age limit. And there are venture capital funds now specifically targeting older founders. The Silver Century Foundation has a fund that invests in startups with founders over 50. They've backed companies in senior care, assistive technology, and financial planning. Luna: So the investment community is starting to take notice. What's the economic impact? If a 60-year-old starts a consulting firm, that's one job. But if they hire a few people, it adds up. Lucas: It adds up significantly. The Kauffman Foundation found that older entrepreneurs create jobs at a similar rate to younger ones, but their companies tend to survive longer. Over a ten-year period, a startup founded by someone over 55 has a 70 percent higher survival rate than one founded by someone under 35. That stability matters for local economies. Luna: I can see why governments might want to encourage this. But are there policies in place? Lucas: A few. Some states offer tax credits for older workers who start businesses. There's also the federal Small Business Administration's mentoring programs, but they're not age-specific. The big idea floating around policy circles is to allow older entrepreneurs to delay taking Social Security while they build a business, without penalty. Luna: That's clever. Because right now, if you start a business at 62 and it doesn't generate much income, you might have to take reduced benefits. Delaying that decision could give you more runway. Lucas: Exactly. And the payoff could be huge. A study by the RAND Corporation estimated that if just 5 percent more workers over 55 became entrepreneurs, it would add $2.3 trillion to GDP over the next decade. That's not a rounding error. Luna: That's enormous. But I wonder about the downsides. Older entrepreneurs might have less energy or risk tolerance. And if their business fails, they have less time to recover financially. Lucas: Those are real risks. The failure rate is still high for any startup, and for someone in their 60s, a failed business could wipe out their retirement savings. That's why financial advisors often recommend that older entrepreneurs keep their startup costs low and avoid dipping into retirement accounts. Luna: So the key is to structure the business so it doesn't jeopardize their safety net. What about the flip side—are there advantages beyond experience? Lucas: Absolutely. Older founders tend to have better networks, more industry knowledge, and more realistic expectations. They're less likely to chase unicorn status and more likely to build a sustainable business. A study by the University of Chicago found that the average age of a successful startup founder is 45. That's older than most people think. Luna: That's eye-opening. So the image of a young founder is more the exception than the rule. Lucas: It is. And as the population ages, this trend is only going to accelerate. By 2030, all baby boomers will be over 65. If even a fraction of them start businesses, we could see a boom in 'gray entrepreneurship' that reshapes how we think about retirement and economic growth. Luna: So what's the one thing you want listeners to take away from this episode? Lucas: That age is an asset, not a liability, when it comes to starting a business. And that the data supports what many of us have suspected: experience, networks, and a clear sense of purpose are better predictors of success than youth and energy. The question now is whether our policies and culture will catch up to that reality. Luna: That's a good place to leave it. Thanks, Lucas. Lucas: Thanks, Luna. And thanks to our listeners. If this episode made you think, consider supporting the show at buy me a coffee dot com slash fexingo. It keeps us ad-free and independent.