A Look at Entrepreneurship by Age

By SBE Council at 5 May, 2026, 1:45 pm

by Raymond J. Keating -

Since it's National Small Business Week (May 4-9), it's a good time to review the data and information about small business ownership by age. Specifically, while some assume that entrepreneurship is a game mainly for the young, the numbers tell a somewhat different story.

Let's consider a few points and various findings.

● In October of last year, The Wall Street Journalreported that self-employment rises, significantly, with age. It was noted:

"Nearly 30% of employed people in their 70s work for themselves, almost double the share of self-employed people in their 60s, says Cal Halvorsen, an associate professor of social work at the Brown School at Washington University in St. Louis. That translates into about 1.3 million septuagenarian entrepreneurs, he says."

Halvorsen's report, which was co-authored with Bruna Lopex at Boston College, offered striking data when it comes to entrepreneurship (unincorporated and incorporated self-employed) among working Americans (as opposed to both working and non-working). They reported that "among ‌ working‌ Americans, self-employment rates rise with age. While about 1 in 25 workers ages 18 to 29 are self-employed, nearly 3 in 10 workers in their 70s and about 4 in 10 workers over age 80 are self-employed.‌" (See the following chart from the report.)

The authors concluded: "These findings reflect that while many people fully retire, those who remain working are more likely to choose self-employment. Reasons include the desire to be one's own boss,‌ conflicting caregiving responsibilities that require more flexible work,‌ wanting to choose working times and work from home,‌ and difficulty in finding wage-or-salary employment due to age bias and discrimination.‌"

● Similarly, the SBA's Office of Advocacy has noted, "According to Census Bureau data, the share of self-employed (incorporated and unincorporated) age 65 and over increased from 14.1% in 2013 to 17.1% in 2021 while those under age 30 only had a slight increase, from 7.1 to 8.1%."

● A "Spotlight on Statistics" report from the Bureau of Labor Statistics also noted the self-employment rate was higher for older workers in 2015. (See the following BLS chart.)

The BLS reasonably speculated: "A possible reason is that younger workers rarely have accumulated the capital and the managerial skills required to start a business, whereas many older workers may be able to acquire these resources through their own efforts or through access to credit."

● What about high-growth entrepreneurial firms? Do the entrepreneurship numbers still skew older?

According to a study by Pierre Azoulay, Benjamin F. Jones, J. Daniel Kim, and Javier Miranda titled "Age and High-Growth Entrepreneurship," the answer is that successful entrepreneurs tend to be "middle-aged, not young." The author reported, "The mean age at founding for the 1-in-1,000 fastest growing new ventures is 45.0. The findings are similar when considering high-technology sectors, entrepreneurial hubs, and successful firm exits." A key point: "Prior experience in the specific industry predicts much greater rates of entrepreneurial success."

They concluded: "The highest success rates in entrepreneurship come from founders in middle age and beyond. These findings are consistent with theories in which key entrepreneurial resources (such as human capital, financial capital, and social capital) accumulate with age. Mechanisms by which young people are proposed to have advantages (such as energy or originality) may still be operating, but if so they appear to be overwhelmed by other forces."

Of course, entrepreneurship is a game, if you will, that can be played by individuals up and down the age ladder, but the experience, resources, and needs that come with age can, and does, play a significant role.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council. He is the author of " The Weekly Economist " book series, and 10 Points from Walt Disney on Entrepreneurship .