More than four million people aged over 40 are putting their business plans on hold, potentially costing the UK more than £391 billion in lost entrepreneurial potential. Research of 2,000 adults found 13% of those aged over 40 have a business idea they are currently keeping on the back burner.
The average sole trader business turns over £90,000 per year, according to small business data, and the loss of revenue from more than four million over-40s with stalled business ideas could total £391 billion.
Why over-40s hold back
Among those already sitting on an unpursued business idea, 38% believe they are now too old to start a business, and 21% are holding back because they worry it might not succeed.
The research was commissioned by small business insurer Simply Business to launch the Second Act Entrepreneur Fund, which is giving away £50,000 in grants and coaching to five entrepreneurs aged 40 and over.
Levi Roots' second act
Levi Roots was 48 when he pitched Reggae Reggae Sauce on Dragons' Den in 2007, turning a Notting Hill Carnival side hustle into a business now worth an estimated £30 million.
He said: “I was a musician for a long time before Reggae Reggae Sauce existed, and even once I had the perfect recipe, it wasn't until I was 48 that I really took a chance on it.
“So, I understand what it feels like when people tell me they've had a good idea for years but think they've left it too late.
“There's a huge amount of talent in this generation that's just waiting to be acted on. Ideas don't have a use-by date, and neither do you.
“That's why I wanted to be part of the Second Act Entrepreneur Fund – to help others realise what they're capable of and chase what they've always wanted.”
Confidence and support gaps
It also emerged 34% of over-40s would rather own their own business than work for an employer. However, only 34% believe they currently have the skills, experience and knowledge necessary to run a successful enterprise, compared with 65% of under-40s.
Meanwhile, 22% fear they have too much to lose financially to risk starting a business. Despite this, 60% think their wealth of practical life experience would make them better equipped to start a business, according to the research conducted through OnePoll.
It also emerged 39% of over-40s don't think there is enough support available to help them take the leap into entrepreneurship. When it comes to building confidence, 15% said access to start-up funding would help, while 13% said the same about financial advice.
Better protection against financial risk (12%) and a clearer understanding of the start-up process from start to finish (12%) were also cited as valuable tools which could build self-belief among this cohort. A further 15% said mentorship from experienced business owners would help, while 65% added the same about access to funding and support networks. Yet if they were to take the plunge, 42% believe they could get their business off the ground with £10,000 or less.
Julie Fisher, UK CEO at Simply Business, which will be giving five winners a £10,000 grant following the completion of one-to-one business coaching provided by Hatch Enterprise, added: “A brilliant business idea doesn't have an age limit, but our research shows how many people over 40 feel they've missed their chance.
“They have the experience and the ambition, yet 38% think it's too late to start. That's a huge amount of potential being left on the sidelines.
“When you have a mortgage, a family or a steady job, taking a chance on an idea can feel like an impossible choice.
“With the Second Act Entrepreneur Fund, we hope to make that first step more accessible, with funding and practical support to turn five big dreams into a reality.”
