Care Analysis: We rely on Entrepreneurs over 50

Oonagh’s report demonstrates that although the care workforce is ageing, a by-product of the recruitment drive will be an injection of new ideas. Combine this with Steve’s demonstration of the power of intrapreneurs to unleash change and the thirst of leaders to shape an intrapreneurial culture… and it's clear the future care sector must grasp this blast of new energy.

This fusion of hard data and soft power is complemented by Enterprise Nation’s ‘Access all Areas: Older workers' report, published in October that argues the importance of attracting older workers back into work because of the value of their experience and entrepreneurial spirit. And, importantly creating a culture and flexibility that older workers crave.

The UK must urgently harness older workers' knowledge and skills if the UK economy is to reach its full potential. Supporting older workers back into work or entrepreneurship must be a key focus. The wealth of talent can help drive economic growth and reduce the tax burden on younger generations.

Access all Area: Older workers

‘Access all Areas: Older workers' argues that there are things we can do to turn the dial and begin to reverse the exodus of older people from the UK workforce that was triggered by the pandemic, by actively helping those that have left to restart their careers or to start a business.

Emma Jones, CBE, Founder and CEO Enterprise Nation

“This report shows that we’re at a crossroads. Do we just accept the ‘new normal’ of higher economic inactivity among our older population, and walk down the path of reduced productivity, persistent inflation, higher taxes and a smaller economy? Or, can we take the other route – where older generations actively choose to restart their careers, or set up their own businesses, and make a significant difference to our economy? Readers won’t be surprised to see that we believe the latter is eminently possible, provided the right support is on offer.”

Report Snapshot

The Leavers: Nearly 50% of the over 50’s leaving work have simply retired

According to our Small Business Barometer, 79% of small business founders agreed older people bring a lot of valuable experience

Chart 2: Reasons for over-50's leaving work since the pandemic. Source: Enterprise Nation’s ‘Access all Areas: Older workers' 2023

According to research from the Centre for Ageing Better, 36% of people aged over 50 think their age puts them at a disadvantage when searching for a job. Sadly, research carried out last year by the Chartered Management Institute seems to corroborate this belief – its poll found that just four in 10 managers were to a “large extent” open to hiring workers aged between 50 and 64.

In the same research, the Centre for Ageing Better also found that the stage at which older people (those aged 50 to 69) feel most disadvantaged because of their age was the application process. One way to guard against this might be for businesses to think hard about what information they need to see on a CV, and how they frame their job descriptions.

Businesses should consider what sort of workplace ‘culture’ they have, and what – potentially unappealing – signals it might send to certain groups, including older people.

In a recent interview, the Work and Pensions Secretary, Mel Stride, noted how it was down to employers to make older staff feel welcome, and pressed them to ensure that their workplace culture or stance on social issues did not alienate the over-50s.

Consider allowing more flexible working arrangements for the people who need them

Flexible working has become far more commonplace since the pandemic, and is something that older people appear to value especially highly. In the Over 50s Life Survey, of those surveyed who would consider returning to work, flexible working was the most important aspect of choosing a new job (36%), followed by working from home (18%) and something that fits around caring responsibilities (16%). That clearly indicates a desire among older workers to have flexibility built into their working patterns.

While it’s not for us to say how individual managers should run their businesses, being open-minded about working arrangements for their staff could help them reach a wider audience of potential employees, including older workers. Explicitly advertising a willingness to offer flexibility in job adverts could also result in more older people applying.

The Starters: 35% of businesses are started and run by people over 50

With the average age for an entrepreneur standing at 46 in the UK, it’s clear that older people have a huge contribution to make to the small business community.

Chart 1: Economic inactivity rate of people aged 50 to 64 in the UK. Source: Enterprise Nation’s ‘Access all Areas: Older workers' 2023

Contrary to the popular image of business founders being go-getting twenty-somethings, Enterprise Nation’s most recent Small Business Barometer found that the average age of the UK’s business founders was 46, and that 35% of businesses are started and run by people over 50. These data show that age is no barrier to entrepreneurship, and could be a viable option for older people looking to take part in the economy once again.

What’s more …

• 67% of entrepreneurs over 50 say now is a good time to start a business
• 46% of this group say they started a business for a better work-life balance
• The top reason for over 65s working for themselves is to give back and share their knowledge
• 35% of businesses started by over 50s entrepreneurs are side-hustles
• Over 50’s are much less likely to feel the impact of the cost-of-living crisis – only 20% of the 56–65 age group and 13% of over 65s said they’d been affected, compared to an overall average of 79%

Emma Jones, CBE, Founder and CEO Enterprise Nation

“According to our own Small Business Barometer, 79% of small business founders agreed older people bring a lot of valuable experience – something small firms need in spades, especially when they’re first setting out.

But how can we help make this happen? This report suggests a handful of ideas that both government and businesses themselves can spearhead.”

Why older people make ideal entrepreneurs

There are several reasons why older people may be well- suited to entrepreneurship. Perhaps most obviously, they tend to come with a relative wealth of experience of the working world, even if they’ve had gaps in employment. Through this, they’ll have honed both their general skills and industry-specific knowledge, which puts them in a strong position to effectively manage a business and make a success of it.

Closely related to this, many older people will have already built-up close networks, which they can draw on to increase their chances of their entrepreneurship seeing success. Networks are vital for entrepreneurs – whether in terms of having customers to sell to, or investors to receive funding from, or when it comes to hiring talent or finding a business partner. Again, leveraging these ready-made relationships can significantly reduce the barriers to entry and increase the likelihood of success.

According to a House of Lords Economic Affairs Committee report, many of those people who have left the labour market are “reasonably well-off”. Other data corroborate this, such as an Office for National Statistics analysis, which found that, among adults aged 50 to 65 who have left or lost their job since the start of the pandemic and haven’t returned to work, most (66%) reported owning their homes outright, and that they were more likely than not to be debt-free (61%). According to Enterprise Nation’s Small Business Barometer, of entrepreneurs who are in this category, only 20% of people aged 56 to 65 and 13% of the over 65s said they’d been affected, compared to an overall average of 79%.

This strong financial position can obviously give such individuals a leg-up when it comes to going into entrepreneurship. They may well have the resources not only to start a business, but also to do so without the immediate pressure to make significant profits, which boosts the chances of long-term success.