Are You a 'Silver' (later life) Entrepreneur? Back
A 2014 study revealed that 6.5% of over 50's in the UK were involved in entrepreneurial activity. In the past 5 years the number of self-employed people over the age of 65 has more than doubled. With the average pension pot shrinking and increased life expectancy, many silver entrepreneurs, as they have been labelled, are taking action and starting businesses to create new income streams.
For some financial insecurity and maintaining a certain standard of living is the reason why more and more people are working beyond retirement age. For others it is the fear of missing the social and intellectually stimulating environment that keeps them going. The older workforce are looking for a lifestyle change and seem more inclined to stop working for others and become their own boss, using the skills and experience they have accumulated over the years to help them be successful.
New pensions freedom rules are allowing the over 55's to get their businesses up and running.
A study conducted by AXA Wealth showed that more than half a million over 55s are considering taking advantage of new pension freedoms to start a new business. The study also highlighted that almost half intend to use their 25% tax-free lump sum to fund their business.
The top three reasons for starting a business with pension funds, outlined by the study, were:
- Realising a lifelong dream to be a business owner
- Monetising a hobby
- Driven by the urge to utilise the experience and skills gained throughout their professional career in order to supplement their pension income
If the prospect of setting up your own business excites you but at the same time scares you then a franchise could be the ideal venture for you to consider. Becoming self-employed can be daunting and perhaps more so for a silver entrepreneur who has worked for someone else for many years. A franchise offers you a proven business format under an established brand with initial and ongoing support from the franchisor but also your fellow franchisees in the network. Statistically less franchise businesses fail than standalone new start-ups.
In the most recent (2013) NatWest BFA franchise survey 38% of franchisees were aged 50 and over. If you have an accounting or bookkeeping qualification and are considering becoming a silver entrepreneur why not get in touch for an informal chat to see if TFMC would be a good fit for you?