Older individuals often have the advantage of being able to identify different business opportunities, based on experience and acquired knowledge. They can re-invent and refine existing business opportunities, as they know the marketplace and have seen many business cycles through thick and thin.
Given today's improved medical science and technology, as well as an increasing emphasis on healthier lifestyles, many individuals that are entering their retirement years are still in their prime and remain both physically and mentally fit and capable of participating in business many years into their retirement. Not only are recent retirees able to remain active, but they are also equipped with a wealth of knowledge and experience that can be extremely beneficially for a new business venture.
With any business venture, its success rides on the quality of the idea it is founded on and being able to identify this is a skill, which often comes with experience. An idea well implemented into a formal business structure is a further key to success. While entrepreneurial ability doesn't necessarily develop with age, ideas around possible business ventures may arise from need, and the understanding of this need comes from experience and experience comes with age.
For instance, a manager from a logistics company may recognise the need for an environmentally friendly delivery system, or a technician in the publishing industry may see the opportunity for improved printing software. These opportunities may not be obvious to someone who has not been exposed to the particular industry.
While there is no specific retirement age in South Africa (the norm is generally between 55 and 65), retirees should consider entrepreneurial ventures as an avenue to pursue in retirement, whether it be consulting, mentoring or starting a home-based business focused on a personal passion or pastime.
If retirees can harness their skill and experience productively, it is not only a priceless asset to any business, but it can also occupy a retiree's time and assist with supplementing their retirement savings.
There are a numerous benefits for those individuals beginning their entrepreneurial journey in their late 50s to late 60s. Older entrepreneurs are likely to have the advantage of having the experience of managing teams successfully, stronger business networks and be better skilled to execute business plans, all of which aid in running a successful business.
A senior entrepreneur may also be more financially secure than younger entrepreneurs and have an alternative source of income, such as non-retirement savings that has been accumulated during their working life. This financial security can make the financial risks of starting a business less salient.
Older entrepreneurs establishing businesses also create jobs for the economy, as well as become mentors for younger employees or family members. These older entrepreneurs essentially become role models for the next generation. This will this encourage and drive entrepreneurship in South Africa and assist in providing young, budding entrepreneurs with a solid foundation of guidance and advice that they can build on for their potential businesses endeavours.
It is important to remember that age is not a factor in start-up business success, but that success is determined by a winning idea coupled with commitment, passion and energy, as well as the correct planning. While older entrepreneurs may have experience behind them, they still need to be mentally and financially prepared for the journey, similar to a younger entrepreneur and this is ensured by conducting thorough research and planning to ensure that the idea is in fact viable and profitable.
