Necessity Entrepreneurship – More Baby Boomers Choosing to Become Self-Employed

There has always been risk involved with starting your own business, becoming self-employed.  That risk is higher among those over 45, as their prime income earning years are waning.  However, with the slowdown in the economy, more and more baby boomers are seriously considering striking out on their own and starting their own businesses.

According to a recent study, 21% of all workers who change careers after the age of 51 choose to become self-employed.  The term being applied to the current trend, involving older workers being laid-off due to downsizing and other factors, is “necessity entrepreneurship.” 

It may be surprising to learn that, according to another survey, over the past decade more people between the ages of 55 and 64 started web-based businesses that those between 20 and 34.  This trend is expected to continue.

While necessity is the mother of invention, necessity is also the potential mother of financial independence.  More and more baby boomers ( born 1946 -1964) are taking a more serious look at the possibilities of self-employment.

Generally, baby boomers bring vast experience to a business.  Many of them have developed skills and expertise, which until now, have been used primarily to profit others.  Duke Professor Vivek Wadhwa, who studies entrepreneurs, says, “The more experience you have, the more likely you are going to be successful.  The average entrepreneur starts a company because they want to build wealth.  They are tired of working for other people, and they have ideas.”

Most business decisions can be boiled down to simply “risk versus reward.”  It parallels that the greater the risk, the greater the reward.  The fact is that the Internet has made it possible to start a home-based business with a minimal investment.  As well, a web-based business can be located anywhere.

While more and more of the 50 and over crowd seriously consider their career options, many may feel that they have waited too long and that opportunity has passed them by.  In the age of the Internet, nothing could be further from the truth.  In particular, with the advent of social sites such as My Space, Facebook, and Twitter, (often referred to as Web 2.0), social marketing possibilities are boundless.  Not surprising, the fastest growing segment on these social sites is baby boomers.

Thanks to the Internet, and the ability it provides to connect with people all over the world, opportunity abounds.  Information – the very information that many baby boomers possess because of their experiences – have never been in greater demand.

Becoming self-employed takes effort, but that should not a barrier.  A strong work ethic is a common trait of those over 50.  Generally, work is not this issue.  The biggest question is simply, “How do I become self-employed?

Again, the Internet may provide the answer.  It has never been easier to obtain information, to learn new things.  Most community colleges now offer business and finance classes online, and colleges like the Phoenix Institute even make it possible to earn a degree, all without leaving home.

There is also an abundance of free Internet training, especially pertaining to web-based businesses.  Places like Renegade University will teach the basic marketing skills necessary to set-up and run a profitable online business.

However one decides to pursue their goals, it is clear that there have never been more affordable resources than right now.  Instead of worrying about when the economy might rebound, why not take a step of faith and seriously look at self-employment as a viable alternative to working, and profiting, someone else.  The time has never been better.

Necessity has once again proven a mighty force for good.