I believe that starting a business in later life is good for you, but what do the experts say?
WHY START A BUSINESS IN LATER LIFE?
Typical reasons:
You’re retiring soon but not quite ready to retire.
You always wanted to start your own business and you now have the time to devote to it.
You spot a great opportunity.
You need or would like to supplement your pension income.
You want control over what you do.
You need but can’t find a job.
You have the financial resources, can secure attractive loan terms, or your new business idea doesn’t need much funding.
You want to find new purpose.
People from Generation X (born between 1965 and 1980) and the Baby Boomer generation (born between 1946 and 1964) play a big role in the world of small business. Boomers often bring lots of experience and strong networks they’ve built over the years, while Gen Xers are great at mixing old-school know-how with fresh, modern ideas. Each group brings something valuable to the table when it comes to starting and running a business.
Baby Boomers
What they bring: Boomers usually have a lot of experience behind them, strong professional networks, and solid financial resources thanks to long careers. Many have built up savings or assets they can use to fund a business.
How they do business: They often stick to what they know works — using their contacts, drawing on years of knowledge, and aiming to build something that lasts.
How they fund it: Boomers typically rely on personal savings, bank loans, or traditional investors like angel investors to get their business off the ground.
Generation X
What they bring: Gen Xers are known for being adaptable. They're good at combining classic business methods with new ideas and tech. They’re comfortable with both the old way and the new way of doing things.
How they do business: Think of them as “the bridge” between generations — they often blend tried-and-tested approaches with innovation.
How they fund it: While they still use traditional methods like loans, they’re also more open to newer funding options, such as venture capital or even crowdfunding.
What they juggle: Many Gen Xers are running businesses while also raising families or managing other responsibilities, which can be a tough balancing act. For some, starting a business is also part of their plan to boost their income for retirement.
CAN STARTING A BUSINESS BE GOOD FOR YOUR HEALTH?
Yes, and here’s why (click on underlined words for references):
Mental Health Benefits
More life satisfaction: Studies from Germany show that senior entrepreneurs report greater life satisfaction than both retirees and older employees. Much of that seems to be linked to having relatively better physical and mental health as well as income from their work.
Less emotional exhaustion: Newer research (2024) indicates that older entrepreneurs often experience less emotional burnout. That’s partly because they tend to have stronger psychological resilience built up over the years
Improved well-being once established: Comparing business owners who are still launching vs. those who have established their companies shows that established (and typically older) entrepreneurs have markedly higher well‑being scores
Brain Health & Cognitive Benefits
Staying mentally sharp: Engaging in business—learning things, making decisions, problem-solving—acts as mental stimulation. Research shows that mentally active routines can help stave off cognitive decline in later life.
Physical & Psychological Health Boosts
Better balance & less stress: According to literature on self-employment and well-being, moving into entrepreneurship later in life is linked with better psychological functioning and reduced mental strain—especially when good work–life balance is achieved .
Overall health gains: Self-employment later in life has been associated with better perceived physical health among opportunity-driven older entrepreneurs (not just those who feel forced into it).
Social & Emotional Benefits
More social engagement: Reviews of senior entrepreneurship research highlight that running a business gives people more social interaction, community connection, and a continued professional identity—helping counter isolation often experienced in retirement.
It’s important to note that new businesses are stressful at the start: Those just launching businesses often show lower well-being than longer-established ones, likely due to uncertainty and stress. And even though older entrepreneurs feel less exhaustion on average, that’s usually when they’re using their experience wisely—and not overworking themselves
ARE OLDER ENTREPRENEURS SUCCESSFUL?
Yes — older entrepreneurs are often very successful, and in many cases, more successful than younger ones. Research consistently shows that experience, networks, and maturity give older founders a real edge.
A major study from the Kellogg School of Management and MIT (2021) found that the average successful startup founder was 45 years old at the time they started their company. Founders in their 50s and 60s were even more likely to succeed than those in their 20s or 30s. Older entrepreneurs tend to build businesses that are more stable and last longer, often because they’re not chasing short-term growth but creating something meaningful and well-managed.
WHAT STOPS PEOPLE FROM STARTING UP?
Lots of people want to start a business, especially later in life, but many never do. One of the biggest reasons is the worry about losing savings or getting into debt. They worry that the business may not make enough money and that they won’t be able to replace the lost income.
Many also fear failure, lack self-confidence, or are concerned about their lack of experience with technology and the fast-moving digital world. Some people don’t know where to start or how to get advice. Health concerns and family responsibilities are also barriers.
Older entrepreneurs often self-fund, but this can be challenging if savings are limited, and many do not know how to raise money or access traditional loans. Another barrier for some is the fear of losing benefits, as some people worry about how self-employment might affect their pensions, disability benefits or unemployment support.
For many entrepreneurs over 50, the biggest hurdle isn’t lack of ideas or motivation — it’s the pace of change in today’s business world. Rapid shifts in technology, marketing trends, and customer expectations can make it harder to stay competitive without constant learning.
WHAT ARE THE RISKS?
Starting a business at any age involves some risk — but being aware of them helps you prepare and reduce the impact.
Financial Risk: You might lose personal savings, not earn enough to cover your living costs, or take on debt (eg loans or credit cards) and struggle to repay it.
Reduce it by starting small, testing your idea first, and setting aside a personal safety buffer.
Emotional & Mental Stress: The pressure to make it work can be intense, especially if you're doing it alone. Stress, burnout, or loss of confidence can creep in if things don’t go as planned.
Build a support network and take breaks. Know your limits.
Physical Health Strain: Starting a business can be demanding — long hours, less rest, lots of sitting or screen time. It might aggravate existing health conditions.
Choose a business model that fits your energy levels and lifestyle. Pace yourself.
Time Risk: You could spend months or years on a business that doesn’t take off. This is particularly worrying for older entrepreneurs who feel they don’t have time to waste.
Validate your idea early, and set clear goals and time limits for key milestones.
Reputation or Confidence Risk: Fear of failure can be personal. If things don’t go well, it might affect your self-esteem or how others see you. Some worry about looking “foolish” or “too old” to start a business.
Remember: most successful entrepreneurs failed at least once. There’s no shame in learning.
Lack of Legal or Business Knowledge: You might make mistakes with taxes, contracts, or compliance that could lead to fines or legal trouble.
Get professional advice early. Many free or low-cost services exist for new business owners.
Opportunity Cost
The time and money you invest in a business could have gone toward retirement, part-time work, or other goals. For some, this is the biggest risk of all.
Be clear on what you’re willing to trade — and what your goals really are.
All businesses have risks — but they can be managed with the right knowledge, support, and planning.
CONCLUSION
When seniors start a business with careful planning, real expectations, and focus on balance, it can bring major health benefits: greater life satisfaction, reduced burnout, sharper thinking, and more meaningful social engagement. The risks—especially early stress—are real, but mostly avoidable with the right support and realistic pacing.
Best wishes
Viv