Ageing and entrepreneurial preferences

Authors: Teemu Kautonen Simon Down Maria Minniti

Publish Date: 2013/04/27

Volume: 42, Issue: 3, Pages: 579-594

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Abstract

Previous research on age and entrepreneurship assumed homogeneity and downplayed agerelated differences in the motives and aims underlying enterprising behaviour We argue that the heterogeneity of entrepreneurship influences how the level of entrepreneurial activity varies with age Using a sample of 2566 respondents from 27 European countries we show that entrepreneurial activity increases almost linearly with age for individuals who prefer to only employ themselves selfemployers whereas it increases up to a critical threshold age late 40s and decreases thereafter for those who aspire to hire workers ownermanagers Age has a considerably smaller effect on entrepreneurial behaviour for those who do not prefer selfemployment but are pushed into it by lack of alternative employment opportunities reluctant entrepreneurs Our results question the conventional wisdom that entrepreneurial activity declines with age and suggest that effective responses to demographic changes require policy makers to pay close attention to the heterogeneity of entrepreneurial preferences

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