Hank [BS/MSEE,
MSM $$$, Ph.D. Mgmt] teaches 
There’s a huge void in current research in entrepreneurship. What is this void you ask? Depending on the source of the data, about 75 million baby boomers in the US and in the neighborhood of 450 million world wide are about to make their presence known. Various governmental agencies are concerned about this group for policy reasons, as are a few local and state agencies. Many view this group as a problem about to descend on their already stretched agencies. The 2006 White House Conference Report on Aging states “…in actuality, no one really knows with any certainty what will happen. What is clear is that the policy implications and ramifications are unprecedented in history. America’s graying will transform politics, retirement systems, health care systems, welfare systems, labor markets, banking and stock markets. It will force a re-thinking of social mores and prejudices, from issues of age/gender discrimination in the job market to end-of-life care. Whether that transformation is positive or negative will depend on planning and preparation that must begin today.” Interesting, little if any academic research has been conducted into this group’s propensity to seek entrepreneurial-related activities in retirement and further, how will this group compare with research findings on previous groups, say Generation-Y. Compared to existing retirees, more (20%:9%) boomers state starting their own business is a planned path to financial well being. (See references in Wiki)
A recent study comparing these two groups sponsored by American Express found the two generations
diverge on a host of issues ranging from career influences, risk-taking to serial entrepreneurship. Wharton et al recently conducted a study where a wiki was used to facilitate research into “crowd-sourcing.” I propose using the crowd-sourcing approach for this joint research effort also. This blog drives the first stake into this potentially very interesting and lucrative ground with the launch of a wiki which is available at the following link: http://www.midpreneurs.wiki.zoho.com/ I have also launched a Forum for general discussion about this area which is here: www.thinkbeta.com/forum
All readers are invited to become active in this nascent area of research and potentially fertile area for entrepreneurial activity by entrepreneurs of all ages. Join the wiki and start contributing. Will boomer entrepreneurs differ from younger entrepreneurs? How? And if so, why? Together, we can move toward an understanding of this elephant, one bite at a time. Hank 10/22/07
It will be interesting to see what will happen with the baby boomers entering the entrepreneurial market. It seems to me the boomers are going to have an edge over the younger entrepreneurs. The boomers will naturally have more experience. They will be more familiar with networking, and problem solving because they’ve been doing it for so long. They will also have a better understanding of what the most common problems are. This will be a huge advantage to them. On the flip side, I think they could potentially struggle with many of the new computer technologies that the younger crowd has already mastered. This gives me an idea. Why compete with the older crowd to get someone’s business. it seems to me when you have complimentary skills you should put those together and form an awesome team. This is what forming a new venture team is all about. We’re are going to see some technological and functiounal changes in the near future.
I agree with Tyler that they will have an edge in SOME markets because of their experience in the business world and numerous contacts. They have a huge advantage in being older having all those years to develop financial and human capital. Many boomers will have the opportunity to take on an entrepreneurial idea and run with it. The question to me is, what markets should they pursue? What markets will they be successful in? I think that they should avoid trying to target the younger generation just because they would have a hard time relating. I think that they should stick to the older demographic. I think that in that older market, there are about to be many more opportunities to entertain (resorts, retirement homes, innovative ideas to help old people stay in shape..etc) and take care of these people (medicine, health care, nursing, innovative ideas to help these people go about their day easier, take care of worries, and limit movement by the physically challenged older people). and that’s the type of market that they can relate too, because they’re going through the same things.
11:30 am update. Pepperdine and Ball State Universities have agreed to join the research. Larry Cox, Director Entrepreneurship Center provides this insight: “…the level of entrepreneurial activity drops off substantially as people age. (This is from the Global Entrepreneurship Monitor and the Panel Study of Entrepreneurial Dynamics.) After 65 it’s practically non-existent. That said, the babyboomers may change those statistics. It would be interesting to see how they affect the landscape.”
This is one of the most interesting articles we have blogged on lately. It dives into a subject that we normal do not indulge in and we really do not pay much attention to. I believe that the boomers will have some similarities and some differences as far ventures into entreprenuerial subjects. These similarities come from the diversity, in which comes from different group and their thought processes, how they lived their life and the different things they experience. I believe from both group there will stem an array of some creative and orginal ideas. The fact that both group have different life cycles means that both sides will come up with inventions that solve problems for each of the different groups and from being able to take an outside view of eachother groups, may lead to invention on a cross sectional basis in which one side will be discoverying a cure for the other sides problems. With the exceeption of the boomer being techinally unsavy, I believe both side will and have the opportunity to provide equal shares in the entreprenuerial world.
I think it will be interesting to see how the market changes as an older crowd takes over the entrepreneurial world. The baby boomers will definitely have the edge on everyone else because there are so many of them and a large amount of them hold most of the wealth in the country. Their main advantage over younger entrepreneurs is that they know how to market to other baby boomers, which is a majority of the population. Another advantage that they have is experience, they know how to run a company and they know a lot of information about a lot more things which could come in very handy when building and running a successful company. Regardless of the effect that this will have on the country, it will be interesting to see the outcome.
On average the baby boomers probably are not going to start technology based companies, Just because most of them don’t understand technology. So I could see a big need for our generation to help the baby boomers with technology example setting up business networks, and technology based consulting. In general helping the baby boomer generation figure out how to make their ideas work.
I think it will be good for society if the baby boomers become entrepreneurs, as Tyler said they have a lot more experience and as Nate said it’s probably not going to be technology, so perhaps these baby boomers might be able to very innovative in other industries and perhaps other areas that truly do need innovatio but haven’t got attention yet.
We’ll see what happens, it should be interesting, I’m pretty sure atleast a few baby boomers will come up with some new great ideas
The fact that there are about 75 million baby boomers in the US and in the neighborhood of 450 million worldwide, points to the huge market waiting to be tapped into. I think areas that can benefit from the baby boomers’ business include healthcare, recreation spots, nursing homes, insurance companies along with entrepreneurial developments in goods and services specifically targeted towards an ageing population. As mentioned above by Nate, such developments may include baby-boomer assisted software that is more user-friendly. But on the whole, this target market is bound to be extremely profitable.
While I know that the focus on this is baby boomers, it might be interesting to examine how the generation y plays into this. According to the statistics, Generation-y is very motivated (20% interested in starting their own business). We have children starting successful companies amazing ages. Also, gender roles are changing. More women in the work force means more workers. The combination of these two factors may prevent any major economic problem.
I think the baby boomers will have a huge advantage over the young entrepreneurs. Being introduced to the entrepreneurial world at a much younger age will help the boomers become more productive entrepreneurs and develop their skills at a much younger age. The sooner they can start to learn about business and entrepreneuship the better off they will be. A more diverse group of younger entrepreneurs seems to be in the near future.
75 million baby boomers in the US alone sure makes for an enormous market that is going to be tapped into in the not so distant future. Healthcare and pharmaceuticals are most likely going to see an overhaul and drastic growth; however, these sectors will most likely be developed by non-baby boomers who may not have an understanding of exactly what is needed and / or wanted by that population. As was mentioned earlier, baby boomers may not have the technical knowledge to begin companies and ventures in areas they have experience with and know a little about. I think another reason plays a greater role in determining why more baby boomers are not becoming entrepreneurs: money. Most baby boomers have worked their entire lives until that day when they have enough money saved up that they can finally retire. Why then, would they risk what they have been working towards their entire life? Baby boomers and the older generation do not have the need or desire to take such a big risk with their finances; therefore, it will most likely come down to generation Y to help develop solutions to the new problems that will be created by the aging baby boomers.
The impact of retiring of the baby boomers is an interesting concept. When there isn’t money to be had, you have to find a way to make money… this is the case for this aging generation. I love this entrepreneurial spirit
Yes, I think this is pretty cool and it will be interesting how this will effect the market. The baby boomer entreprenuers do have a lot more of experience under their old belts so this can provide a great edge over others. However, being an entreprenuer requires a lot of committment which means a lot of hard work, energy, and many hours of work a week. This could potentially be hard on the older people coming into this businesses.
A smart Baby Boomer realizes that they won’t be getting the amount of social security that their parents are receiving, so it makes sense that they may use their 401k to start their own companies. I also wouldn’t be surprised if many didn’t though. With the external situations that the Baby Boomers have gone through like raising credit debt, stock influctuations, and increased competition in the work place, many may take retirement in more of a conservative matter. I am eagerly awaiting to see the new companies that come out of this no matter what happens.
I think we should definitely work with Baby Boomers. They would be a good group to work for because they have seen society change so much over time. Our input would help them better their business, which could then be passed along to us when they decide to retire completely. Since they are such a huge part of our society, and most of them are looking at retirement, it would be an excellent group to do some market research in and see what they would be interested in doing for the rest of their lives. They could have some great ideas on what we could start to keep them occupied during their newly acquired free time.