Change the narrative

Success as an entrepreneur depends on the person’s skill set, which includes education, experience, knowledge and skills. Economists call this human capital. It’s essential for exploring hidden opportunities and exploiting existing ones.

Those in their teens and early 20s generally have limited levels of human capital compared to those who 50+ (even if they don’t always recognise it). Many of our 50+ year olds have been reliable and effective staff members in the workforce, until tougher economic times hit. Then they are often the first to go and the last to be re-hired. Ageism is alive and well when it comes to re-employment and finding a new job if applicants are over 50, and this can be a very dispiriting and shatter confidence surprisingly quickly.

But there is an additional option for the 50+ group is to consider: instead of looking to be employed by others, what about the option of creating a sustainable and viable business based on your own idea?

With life expectancy now around 85, there are plenty of years ahead to build a successful new businesses – in other words, to become a successful entrepreneur. Despite rumours to the contrary, there is no retirement age in NZ and never has been.

So while young people may have an edge creatively and technologically, their lack of industry experience, plus other factors like financial security, experience, life and work skills, will all effect their chances of launching a successful business. We gain much of our knowledge and skills through education, working experience and the multiple competencies accumulated the first half of our lives.

This has serious implications for the way policy decisions are made about where the innovation dollar should be spent. The idea of the young entrepreneur has fuelled a huge number of startup grants and programme opportunities for young people and certain “politically favoured” topics. Much of it is wasted.

Meantime, those of us now offering customised courses for those 50+ on ‘How to Launch a Business for the First Time” have zero innovation dollars to promote and conduct startup training courses. We see it all the time. Oh that policy makers may also!

In NZ, we need to reconsider the use of the dollars promoting innovation – and ensure that we target later in life entrepreneurs as well.

Older entrepreneurs, meanwhile, have to resort to using their savings or home as collateral – despite the fact they are clearly a much better potential return on investment.

The myth of the younger entrepreneur may be finally up.

It's time to change the narrative.