Are Startups Only for Young People? Can Older Founders Succeed?

As I reflected on my entrepreneurial journey, I wondered: In my "golden years," can age impact my chances of success? This question led me to research the "older" founder concept, and I discovered a wealth of information that challenges conventional wisdom.

The prevailing belief is that startups are a young person's game. But is this true? Consider the stories of Eric Yuan, who created Zoom at 41; Bill Porter, who started E*TRADE at 54; Robert Noyce, who built Intel at 41; and Aneel Bhusri and David Duffield, who launched Workday at 40 and 65, respectively. While Silicon Valley often glorifies the "dropout founder," data suggests a different narrative: Entrepreneurs in their 40s and 50s may have a higher success rate.

In their article "Age and High-Growth Entrepreneurship," authors Azoulay, Jones, Kim, and Miranda challenge the notion that young people are more likely to create successful startups. Analyzing data from the US Census Bureau's Longitudinal Business Database and Schedule K-1 business owners found that middle-aged entrepreneurs (around 45 years old) have a higher success rate. The study suggests that key entrepreneurial resources—human, financial, and social capital—accumulate with age, contributing to entrepreneurial success.

Source: https://doi.org/10.1257/aeri.20180582

The Wall Street Journal also reports on a new VC fund that invests in startups with founders aged 50 or older. Their rationale? Older founders possess more experience, networks, and profound industry and market knowledge. Jessica Owusu-Afriyie, an entrepreneur, notes that many of her clients began their businesses later in life. Numerous others have studied and reported on this phenomenon, including Mary J. Cronin, entrepreneurship professor and business advisor at the Carroll School of Management, Boston College, who echoes these views in her book, "Starting Up Smarter: Why Founders Over 50 Build Better Enterprises."

As I researched this area, I found many people who either started or are running their startups in their later years—40, 50, 60, and 70. It's more than a career choice for many; they consider it as giving back to society. As Ellen Kochar, professional coach and consultant, explains, the reasons are as follows:

• Feel-good factor: With increasing longevity, those aged 50 and over feel connected to a healthy lifestyle.

• Affordability: With a higher net worth, there is a willingness to take more risks.

• Emotional stability: Older founders have higher emotional stability and positivity, allowing them to adapt quickly to changing contexts.

• Intellectual savvy: A more extensive network, knowledge, skills, and experience help make informed decisions.

• Spiritually aligned: Being mindful and present brings more resilience and hope.

So, why should all this matter? At our universities in Iowa, researchers working with postdocs and graduate students generate a bountiful bag of innovative ideas and solutions. These researchers are often in the age group I've discussed. They are happy doing their research and usually do not consider venturing to become founders. If we can inspire them to become founders, that would be a great benefit to Iowa and beyond. Role models and a rationale for stepping into this arena could be worth trying.

So, if you are an older founder or know one, please comment and share your experience.