Older entrepreneurs have greater success, study reports

While many entrepreneurs may be fresh out of college and grabbing a slice of trendy business ideas such as social networking, the real entrepreneurship boom is being driving by those with the experience to succeed.

Entrepreneurs between the ages of 55 and 64 are leading the way in new business formations, research by the Ewing Marion Kauffman Foundation reported. The foundation considered the experiences of 5,000 businesses beginning in 2004, and found that firms led by older entrepreneurs were more likely to succeed.

"The United States might be on the cusp of an entrepreneurship boom - not in spite of an aging population but because of it," the foundation said.

Surprisingly, the research found that even previous industry experience and startup experience had less of an impact on business success than age did. Of the 5,000 businesses surveyed in 2004, 48 percent were led by individuals 45 year of age or older, but of those that survived through 2008, 64 percent were owners in that group.

Some worry that the high rate of entrepreneurship among older persons represents job loss and a lack of job opportunities, or that they have spent too much time in the corporate world to be successful, Small Business Trends writes. However, according to the site, more years of experience in a similar industry are associated with higher company performance.