More than 12 Million Americans, Ages 44-70, Want to Start Small Businesses or Nonprofits That Create Jobs, Meet Community Needs
November 08 2011 - 3:06PM
Business Wire
New research released by Civic Ventures, a think tank on
boomers, work and social purpose, shows that in a tough employment
market, millions of Americans in their 40s, 50s and 60s are
interested in creating jobs for themselves and others.
“Encore Entrepreneurs: Creating Jobs, Meeting Needs,” which was
funded by MetLife Foundation and conducted by Penn Schoen Berland,
shows:
- Approximately 25 million people – one
in four Americans ages 44-70 – are interested in starting
businesses or nonprofit ventures in the next five to 10 years.
- More than 12 million of these aspiring
entrepreneurs (48 percent) want to be encore entrepreneurs, making
a positive social impact as well as a living.
- Most potential encore entrepreneurs (72
percent) expect to create local, small organizations employing
up to 10 people.
Research shows that potential encore entrepreneurs are daunted
by the economic risk in starting ventures now, but half are still
eager to move forward.
- Nearly six in 10 (58 percent) say the
current economic crisis makes them more likely to start their own
businesses or nonprofit ventures.
- More than half (54 percent) say they
are “very likely” to start their ventures within the next 5 to 10
years.
- Just under half (47 percent) of encore
entrepreneurs believe they would not be able to obtain adequate
financing. The same percentage (47 percent) expect to tap their
personal savings to launch their ventures.
- About half (52 percent) say they have
delayed launching their ventures because they do not feel secure
enough financially right now.
The findings reinforce consistent research from the Kauffman
Foundation, which shows that for 11 of the 15 years between 1996
and 2010, Americans between the ages of 55 and 64 had the highest
rate of entrepreneurial activity of any age group.
“In a sea of bad economic news, it’s heartening that millions of
people with experience want to take matters in their own hands and
launch their own ventures to meet social needs in their
communities,” said Marc Freedman, founder and CEO of Civic Ventures
and author of The Big Shift: Navigating the New Stage Beyond
Midlife.
“There are certainly many obstacles to building successful
enterprises at this stage in life,” Freedman continued, “but, as
we’ve seen with The Purpose Prize, many have been able to make a
living while making a difference. We need to help many more do the
same.”
Last week, Civic Ventures gave five encore entrepreneurs over 60
years old its $100,000 Purpose Prize for their extraordinary social
contributions. For details and hundreds of stories of encore
entrepreneurs, go to www.encore.org/prize.
“MetLife Foundation's work with Civic Ventures is a great
example of partners working together to find solutions,” said
Dennis White, president and CEO of MetLife Foundation. “It is
inspiring to see this research show that baby boomers are excited
about continuing their involvement in their communities. Their
entrepreneurial spirit is a great way for them to give back.”
A summary of the research follows. Find more at
www.encore.org/research.
On experience
- More than one-third (37 percent) of
Americans ages 44-70 have already started businesses or nonprofit
organizations and, of these, 42 percent are still actively involved
in their ventures.
- Aspiring entrepreneurs report an
average of 31 years of work experience and 12 years of community
involvement.
- Five out of six (85 percent) report
having management experience. Those with experience report an
average of 15 years.
On the motivation and interests of potential encore
entrepreneurs
- Encore entrepreneurs want work they
“are passionate about” (84 percent) and that gives them “a sense of
meaning and a feeling of accomplishment” (83 percent).
- Encore entrepreneurs are interested in
social services (37 percent), poverty alleviation (28 percent),
working with at-risk youth, economic development and health care
(all at 24 percent), the environment (19 percent) and human rights
or social justice (18 percent).
On the characteristics of potential encore
entrepreneurs
Compared to aspiring entrepreneurs in this age group without a
social mission, these potential encore entrepreneurs are more
likely to be women, African American, involved in their
communities, motivated by faith, and serious about getting
started.
On the goals and needs of potential encore
entrepreneurs
- Two out of three potential encore
entrepreneurs (68 percent) would consider their businesses or
nonprofit ventures worthwhile if they earned less than $60,000 a
year.
- Two out of three (67 percent) report
that they need $50,000 or less to get started and only one in five
(20 percent) say they need more than $100,000.
- Two out of three (67 percent) plan on
having a local, state or regional (as opposed to national or
international) impact.
How the research was conducted
From Sept. 14 to 28, 2011, Penn Schoen Berland conducted 400
online interviews with adults between the ages of 44 and 70 who
live in the United States and express interest in starting their
own business or nonprofit ventures in the next five to 10 years
(Potential Entrepreneurs). This included 193 Potential
Encore Entrepreneurs who expressed interest in starting
ventures that would have a positive social impact, meet a community
need or address a social challenge. The margin of error for
the total sample is ±4.9 percent at the 95 percent confidence level
and larger for sub-groups. This survey was part of a broader
research effort by Civic Ventures that included a survey of 1,000
adults between the ages of 44 and 75 who live in the United States,
conducted by telephone from June 16, 2011 to June 30,
2011. The findings from this survey will be released on Nov.
29.
About Civic Ventures (www.encore.org)
Civic Ventures is a think tank on boomers, work and social
purpose. The organization introduced the concept of encore careers,
which combine meaning, continued income and social impact.
About MetLife Foundation (www.metlife.org)
MetLife Foundation was established in 1976 to carry on MetLife’s
longstanding tradition of corporate contributions and community
involvement. The Foundation is committed to building a secure
future for individuals and communities worldwide. Through programs
focusing on empowering older adults, preparing young people and
building livable communities, MetLife Foundation increases access
and opportunities for people of all ages. Since it was established,
MetLife Foundation has made more than $500 million in grants and
$75 million in program related investments.
About Penn Schoen Berland (www.psbresearch.com)
Penn Schoen Berland, a unit of the WPP Group (NASDAQ: WPPGY), is
a global research-based consultancy with over 30 years of
experience that specializes in messaging and communications
strategy for blue-chip political, corporate, nonprofit and
entertainment clients.
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