2nd Dec 2018
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Baby boomers fuelling a trillion-dollar market
Author: Janelle Ward
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Baby boomers are fuelling a burgeoning global market – labelled the silver economy – estimated to be worth $15 trillion by 2020.

There are about 962 million people over 60 in the world today – more than twice as many as in 1980 – and by 2050, that number will more than double again to nearly 2.1 billion. People are living longer, healthier lives than ever before – and need to fund those lives – and with that comes demand for services, and opportunities to work longer and drive new business.

Georgetown University Professor and founder of the Global Social Enterprise Initiative at the McDonough School of Business Bill Novelli says: “The ageing population is one of the most important trends in that the classic dream of retiring at 65 to travel and play golf has almost evaporated. “You have to put ‘retirement’ in quotes because nobody knows what it is any more,” says Novelli.

The 2018 Small Business Trends for Baby Boomers survey of more than 2600 small business owners and entrepreneurs in the US uncovered interesting details about Americans over 50.

Overall, entrepreneurs over 50 make up more than half of America’s small business owners, forbes.com reports. One third of all small business owners were between 50 and 59; 17 per cent were 60 to 69, and four per cent were 70 or older. Three quarters of entrepreneurs over 50 were male and one quarter were female.

Forty-two per cent opened a business to pursue their passion, 36 per cent because “the opportunity presented itself,” and 22 per cent because they were dissatisfied with corporate America. Just 15 per cent started their business after they lost their jobs.

An Australian study names pharmaceuticals and healthcare, financial services, and consumer industries such as travel and leisure as the key areas that have enormous potential for innovation.

At-home catering is one such area in demand from older Australians.

Perth businesswoman Natasha Winburn-Clarke says older customers have become one of her biggest markets and older people her preferred employees. Mature workers were a “good fit”, she told the ABC, adding that one new employee had alerted her to the existence of the Federal Government incentive, Restart, which aims to encourage businesses to employ older Australians.

Dr Alex Maritz, from LaTrobe University, said studies showed strong growth in the number of older people starting successful businesses. A variety of fields were covered, he said, but service provision and accommodation were prominent.

He said his research showed older people’s shortage of time was a strong driver to succeed quickly.

New South Wales Minister for Ageing Tanya Davies says research shows a wealth of opportunity for small businesses that cater to the seniors’ market. She urges potential owners and entrepreneurs to use the seniors’ cards offered in states and territories to make their businesses more visible.

A recent national report, Employing Older Workers, found that employers’ attitudes were changing, but that up to one third were reluctant to hire workers over a certain age and, for more than two thirds of that group, the age was 50.

A growth in new business start-ups catering to older people shapes as the perfect opportunity to employ older Australians.

Melissa Gong Mitchell, executive director of the Global Coalition on Aging (GCOA), says older employees are generally more loyal, offered seasoned experience and institutional knowledge and could mentor younger employees.

“Older people are the future of the workplace,” she says. “If, as an employer, you recognise and honour the changes that are happening in your employees’ lives, then you gain a competitive advantage among employers because people are going to be more loyal to you.”

Have you noticed new businesses starting up to serve an ageing population? Have you started your own? Are you working beyond the traditional retirement age just because you want to?

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    COMMENTS

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    double j
    4th Dec 2018
    10:43am
    No way would I start a new venture, I owned and operated a medium business for 30 years until retirement 5 years ago. The government and ATO requirement would not be worth the stress and keeping up with changes in legalisation is a nightmare You would also need a good understanding of accountancy and computers All to hard and to much risk !!
    Old Geezer
    4th Dec 2018
    11:42am
    Now you know why I have a profitable hobby.
    billie
    4th Dec 2018
    12:42pm
    What is it old geezer? Do you want to share?
    Tzuki
    4th Dec 2018
    3:09pm
    Yes, Old Geezer, I am waiting to hear too ;)
    inextratime
    4th Dec 2018
    4:47pm
    OG's hobby is online share trading. I'm waiting for the book to come out.
    Old Geezer
    4th Dec 2018
    4:54pm
    Nope I not allowed to tell you or I will be put in gaol. I have written many books but none on share investing.
    floss
    4th Dec 2018
    6:26pm
    More fibs from the best fibber I know , O.G. perhaps a book on porkies.

    5th Dec 2018
    7:16am
    OG's ''profitable hobby'' is running a nudist retreat on the Sunshine Coast. That's how he manages to live on next to nothing and neither own a home nor pay rent.

    5th Dec 2018
    7:18am
    I still work part-time in a small business - not for money (though the little extra is nice), but because I love what I do. I dread the thought that health might force me to stop soon.
    Franky
    9th Dec 2018
    5:32pm
    Sorry, I'm winding down. I had a number of small businesses from 35-50 years of age, and I prefer to do without the stress of it. It seems natural as we get older to make room for young people to make their mark in the world, take it easier and assist them in whatever way we can. Consulting, counselling, coaching etc would be worthwhile pursuits, I choose free lance touring, where I decide when and how much I want to work. Really anything you're passionate about, but spare me from owning a business! Been there, done that.


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