Amy Lindgren
Second Sunday Series – This is the 10th of 12 columns on career planning post-60, which will appear the second Sunday of each month from September through August.
In last month’s Second Sunday column on career planning for folks in their 60s, 70s and 80s, I made a promise to focus this month on self-employment. Since business startup is one of my favorite subjects, it isn’t a difficult promise to keep.
Let’s start with some myth-busting and interesting facts.
Myth 1 – Most entrepreneurs start businesses in their 20s. Actually, according to Kauffman Indicators for Entrepreneurship, the national rate of business formation in 2025 for people 55 to 64 was almost 50% higher than for those in the combined 20-34 age group.
Myth 2 – Older business founders are reacting to the economy. According to a Forbes analysis of the Kauffman report, the number of business starters ages 55-64 increased 35% from 2015 to 2024, making this group the fastest growing among the age cohorts for founding businesses. Since our economy has shifted numerous times in the same period, this group is likely responding to multiple factors and not just labor market numbers.
Myth 3 – Starting a business means hiring employees. Apparently not, since the Small Business Administration reports 81% of small businesses employ only the owners.
Myth 4 – Business owners make a good salary. Well … some do, of course. But the Census Bureau reports the average gross for a business with no employees is about $47,000. While average owner salaries range from $24,000 to $51,000, Forbes notes that 30% of small-business owners take no salary at all.
Myth 5 – Most new businesses fail. Actually, that depends on your definition of “fail.” While the closure rate for new businesses is high, we don’t know whether those owners took new jobs, retired, got bought out, or indeed “failed” at operating their business. Related to age, a March 6, 2026, article from AARP quotes statistics from Global Entrepreneurship Monitor indicating business owners aged 18-34 were nearly three times more likely to close a business in 2024 than those aged 55-74.
Of course there are more statistics but none that I could find indicating business startup is any riskier for older entrepreneurs. So let’s flip the script and look at why business startup is a good bet post-60.
Experience = success. Senior business owners who offer services based on past work experience can charge higher rates and work on better contracts.
Contacts create clients. Whether the new business is highly technical or closer to manual labor, seniors know a plethora of people who can become clients or lead them to future customers.
Additional income creates a safety net. For those seniors who have retirement income, Social Security or Medicare, early days of low business income may not be critical. With a financial safety net in place, the opportunity to grow slowly can mean the difference between surviving the first year or two or closing early.
Startup costs may be lower. For example, a 60-year-old offering home fixit services may have already accumulated a lifetime of tools. Not having to purchase new equipment for each new job can shift the business from breaking even to profitable.
These are just some of the reasons older workers may be more successful at operating a business than they might expect. But what makes entrepreneurship a good option over other kinds of employment? The answers are as varied as the seniors themselves.
Flexible schedules. Older workers who want to travel, work only part-time or flex their schedules for family issues can meet these demands by simply adjusting their hours.
Flexible income. Some post-60 workers may be trying to stay within Social Security earning limits, which can be complicated when working as an employee. Self-employment makes it possible to set rates or turn down contracts to stay within a certain income; business tax deductions can also play a part in keeping the take-home pay low.
Conversely, an older worker who is trying to maximize income also benefits from self-employment, where the rates and services can be tweaked instantly (as opposed to waiting for an annual raise).
Control over age bias. Although age discrimination doesn’t disappear for business owners, they spread out the risk across multiple customers rather than concentrating it with a single employer.
If you’re starting to catch the fever, you’ll be pleased to know that the steps for business startup don’t differ according to your age. You still need to identify the service or product you want to offer, decide whether to start from scratch or buy an existing business, and run your numbers to ensure you’re making a good choice.
The whole process could take several months or longer, so dawdling isn’t in your best interest. Take your first steps by talking with a small-business coach or taking a startup class. If this is what you want to do, the rest will follow as long as you set a pace and stay focused.
Amy Lindgren owns a career consulting firm in St. Paul. She can be reached at alindgren@prototypecareerservice.com.