Startups increase 29 percent

Lately people in the valley -- and on this list -- have been talking about how successful entrepreneurs are more likely to be young (say, in their 20's).

This article and its sources would appear to flatly contradict that thought, except that I think the article is defining "startup" as any new business. Whereas we're talking tech.

So maybe younger people do better in tech businesses but not in general? Why would that be? More in touch with new technology? More willing to ignore conventions in applying it? At the same time, suffering from less legal, financial and market acumen.

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According to Challenger, start-ups in the first quarter were dominated by experienced workers over 40. Of those starting their own firms, 88 percent were over 40. That was up from 78 percent in the previous quarter.

“It makes sense that these seasoned veterans might be more jaded about the corporate employment experience and are therefore more likely to turn to self-employment. In many respects, these individuals are also better suited than their younger counterparts for entrepreneurship, since they have a deeper foundation in business operations and probably have built a larger network of professional contacts who are critical in drumming up customers,” says Mr. Challenger.

“New start-ups will most likely be dominated by older, more experienced veterans of corporate America for the foreseeable future as baby boomers leave the traditional workforce and start their own firms,” he says.

Evidence that this is already occurring can be found in unpublished government data revealed by Challenger, which show that those 55 to 64 and older represent one of the fastest growing groups of self-employed workers.

Data from the Bureau of Labor Statistics show that the number of Americans 55 to 64 categorized as self-employed in non-agricultural industries increased 33 percent from 1,439,000 in 2000 to 1,919,000 in 2006. The number of self-employed 65 and older grew 19 percent from 659,000 to 781,000 during the same period.

The largest number of self-employed workers consists of boomers 45 to 54 years old, who accounted for more than 2.7 million or 25 percent of the nation’s 10.9 million self-employed in 2006.