Boomers Pursue Entrepreneurial Ventures

For Boomers who prefer to do things their own way, the entrepreneurial road is full of ups and downs. Boomers have advantages in savings, business experience, wisdom, and connections made over the years. But, launching a business is always risky, and Boomers have a lot to lose.

Pros and cons of being the boss

Most Boomers use their personal savings to finance new small businesses, thereby avoiding the high interest rates that can come with credit cards and bank loans. But, Boomer business owners face unique retirement challenges by putting their financial resources at risk later in life. "Boomer business owners face a distinct challenge in that they have less time to rebuild their wealth if the business isn't successful," says John Diehl, senior vice president of The Hartford's Retirement Solutions Group.

For Boomers, a better work-life balance is among the greatest benefits to becoming the boss. In fact, 59 percent say their work-life balance improved after going into business, despite the myriad day-to-day responsibilities business owners face. But, despite the many benefits, Boomer business owners face a number of challenges. For example, 70 percent say they're surprised by the amount of time they spend on issues not directly related to their core business, such as legal, accounting, and insurance matters.

And, Boomers aren't prone to ask for help. Ninety percent of Boomer business owners are confident in their ability to plan for their own business and personal financial needs, so much so, that few regularly seek consultation and guidance from professionals. In fact, while 51 percent regularly rely on guidance and insights from their accountants, only 20 percent of owners regularly rely on a financial planner, 31 percent regularly consult an attorney, and 32 percent
regularly consult an insurance expert.

Snapshot

75 percent of Boomers tap their personal savings when launching a new business. 20 percent use credit cards, and 16
percent take out bank loans.
-- The Hartford Financial Services Group

54 percent of self-employed workers are Boomer-or-older entrepreneurs.
-- U.S. Bureau of Labor Statistics

Less than half of new businesses started in the U.S. survive past the first four years.
-- U.S. Bureau of Labor Statistics

Businesses that are started by people in their fifties have double the chance of surviving the first three and a half years than those started by people in their twenties.
-- NatWest Bank