'Encore entrepreneurs' can be a growing resource in an aging state
There have been conversations lately about Maine's uncertain future, due in a large part to its graying population.
Maine is, per capita, the oldest state in the country. Fifty Mainers a day turn 65 years old. At AARP, we understand the challenges the state faces, but we also see unique opportunities. We believe that people 50 and older have much to offer and are vital to the future of Maine's economy.
One area where this is particularly true is entrepreneurship. As of 2012, 7.7 million self-employed workers in the United States were age 50 or older. Several factors, including the aging of the workforce, combined with the severe economic recessions of recent years and increased interest in entrepreneurship, have led to a rising share of new entrepreneurs in both the 45–54 age group (from 23.9% of total new entrepreneurs in 1996 to 26.3% in 2012) and in the 55–64 age group (from 14.3% in 1996 to 23.4% in 2012).
According to a recent AARP study of 1,500 adults aged 45–74, 15% of older workers are self-employed, with more than three in 10 of them reporting starting a business due to job loss. Another 13% of those 45–74 are currently in salaried jobs but say they plan to start a business when they retire — in other words, to become “encore entrepreneurs.” One in four Americans between the ages 44 and 70 are interested in starting their own business or nonprofit venture in the next five to 10 years.
To help meet the needs of these encore entrepreneurs, AARP and the U.S. Small Business Administration (SBA) joined forces in 2012 to mentor, counsel and educate Americans age 50 and older on how to start or grow a small business. Through this strategic alliance, AARP and SBA together connect the 50-plus population to small business development resources, including online courses, live workshops, conferences and mentoring programs. The collaboration between AARP and the SBA has connected upwards of 119,000 individuals nationwide with tools and resources to start and maintain a business.
A core element of this initiative has been the development of resources that are free and accessible online. In addition to the locally-based events mentioned above, AARP resources include:
• A dedicated website (www.aarp.org/ StartABusiness) to easily locate AARP and SBA resources;
• An online quiz to assess readiness to start a business;
• A webinar series, including 10 separate online events, focusing on issues such as writing a business plan, financing start-up costs and marketing a small business.
Current and future entrepreneurs are fortunate to have access to many great resources across Maine, including SCORE Maine, Small Business Development Centers, CEI (Coastal Enterprises Inc.) and the Maine Department of Economic and Community Development. AARP, SBA and these organizations just concluded a series of workshops together in April for Encore Entrepreneur Mentor Month. If you have questions or need advice, there truly is no wrong door for accessing information across these collaborative organizations. It was wonderful to see so many 50-plus individuals bringing their passion and ideas to the table as they navigate the transition from one career to another.
Taking a look at life's “what's next” options can be an exciting and fruitful endeavor. As the oldest state, Maine may face particular challenges, but the opportunities for businesses to grow and flourish exist here, too. Not only are the baby boomers potential entrepreneurs, they bring a large and growing consumer base for Maine's many businesses if we seize the opportunity.
Lori K. Parham is the state director for AARP Maine and is based in Portland. She can be reached at lparham@aarp.org
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