Small Business Owners Often Among Older Residents As Numbers Grow

People age 55+ make up 21% of the U.S. population, but own a disproportionately high 50.9% of U.S. small businesses, according to survey data from 3,000 entrepreneurs published by SCORE, mentors to America's small businesses.

The Megaphone of Main Street: Unsung Entrepreneurs data report quotes one encore entrepreneur who explained: "I wanted to be in control of my own destiny. I am an industry expert and this is a chance to put my 25+ years of experience to the test...I know I'm up for it!"

Survey data reveals that encore entrepreneurs have an easier time securing business financing than younger entrepreneurs, but often choose not to use it. Encores were up to 62% more likely to receive non-government aid and 20-46% more likely to be approved for government aid, including PPP loans, unemployment insurance and other sources of federal/state financial assistance, compared to younger business owners.

Instead of capitalizing on these funding opportunities, many prefer to rely on personal finances, including savings (74% of encore entrepreneurs) and credit cards (36.6%). They are also 52.3% more likely to finance their business using retirement savings, compared to younger groups.

A SCORE report last year found that while only 13.2% of the U.S. population are first-generation immigrants, they represent 20.6% of all U.S. business owners.  Recently, SCORE pointed out that small businesses are critical to local communities, accounting for nearly half of all U.S. economic activity, according to the U.S. Small Business Administration, noting that "When you shop local, it keeps the money in the community – it goes to employees and the economy where we work and live."

A recent SCORE survey shows small business owners are optimistic as the country emerges from the pandemic and a return to in-person shopping and dining, but challenges remain. In fact, more than half of small business owners cited finding customers as their number one challenge, followed by cash flow and concerns about inflation.

Between 2010 and 2020, business registrations in Connecticut increased by an average of 5% per year. In 2021, however, business registrations increased by over 20%, thru the end of November, according to an analysis by the Connecticut Data Collaborative of data filed with the Connecticut Office of Secretary of the State.

Recently, Connecticut State Community College (CT State) launched a series of free statewide small business and startup seminars designed to help bring education, training, and mentorship to businesses that are navigating the post-COVID environment.

Data from the U.S. Census indicates that in 2021, business applications in Connecticut climbed to the highest level in more than a decade, up 26.5 percent, exceeding 47,000. 

Nationwide, across both rural and non-rural locations, a third of small business owners (34.7%) say business has returned to pre-pandemic levels; another four in 10 (42.6%) say business is stronger than it was before the coronavirus pandemic. Getting customers is the number one challenge for all small business owners: 54.6% cited it as one of their top three business challenges right now.

SCORE is a national volunteer organization serving as a Resource Partner for the U.S. Small Business Administration and financial institutions. SCORE was founded in 1964 and there are now approximately 390 chapters with over 11,000 volunteers in all 50 states.  Connecticut has multiple chapters in regions across the state, often in association with local Chambers of Commerce.  SCORE counseling is free and confidential for small business owners.  More information is available at www.score.org.