Identifying Factors Related to Interest in Entrepreneurship Past Midlife

Background and Purpose

Scholars have documented that older adults who identify as male and white, as well as have higher levels of human, social, and financial capital, are more likely to become entrepreneurs, although socioeconomic diversity increases with age among entrepreneurs. However, missing in the literature is information regarding older adults who are interested in becoming entrepreneurs, often a precursor to entrepreneurship itself. As such, this study has two aims: first, to document who, among older Americans, is interested in entrepreneurship while considering indicators of human, social, and financial capital, as well as a set of psychological indicators and sociodemographic variables; and second, to determine if these factors differ by gender.

Methods

Using secondary data from a 2014 nationally-representative online sample of 1,000 Americans aged 50 to 70, this study employed bivariate and hierarchical logistic regression analyses. The binary outcome variable was interest in starting a business or nonprofit organization. In addition to sociodemographic characteristics, indicators of human capital (educational attainment, health, and the completion of adult education or training), social capital (marital status, contact and support from friends and relatives, and extent of volunteering), and financial capital (income, assets, and receiving Social Security retirement benefits) were included. Finally, a series of psychological measures included scales on the meaning of work and purpose in life, as well as measures on viewing later life as a time for continued work or retirement. We first utilized bivariate analyses to examine the association between these factors and interest in starting an organization in later life. Then, we employed hierarchical logistic regression to investigate the relationship between these factors and interest in entrepreneurship when controlling for sociodemographic variables, including gender, race, urbanicity, and immigrant and work status. Finally, to examine possible differences, we stratified the results by gender.

Results

Among this sample of Americans aged 50 to 70, bivariate and multivariate results were similar. Holding all else constant, multivariate analyses indicated that older adults who were closer to age 50, male, identified as black, had at least a bachelor’s degree, were self-employed, reported a strong support network from relatives, felt stronger personal meaning in work, and identified with the desire to continue working were all associated with interest in starting a new organization. Those who received Social Security retirement benefits had less interest. Stratified by gender, most measures operated similarly. However, women – but not men – who had completed adult education/training and were self-employed were more likely to be interested in entrepreneurship.

Conclusions and Implications

These descriptive findings provide foundational knowledge on interest in entrepreneurship in later life. For example, while white older Americans are more likely to become entrepreneurs, older adults who identified as black had more interest in becoming entrepreneurs. Key aspects of human, social, and financial capital, as well as the psychological indicators and sociodemographic variables, were all associated with interest in entrepreneurship. Future research will seek to understand why interest is higher in some populations more than others and the program and policy implications to achieving equal economic opportunities.