In a 2018 UK franchise report, NatWest reported that while the average age of new franchisees in the UK is around 40, the number of new franchisees aged over 50 grew from 14% in 2015 to 19% in 2018.
The UK National Office of Statistics reported that in 2017, more than four out of ten businesses were started by someone aged 50+. Furthermore, on an international scale, a Kauffman Index Report from the US indicated that nearly a quarter of business founders were aged between 55 and 64 while figures suggesting that this trend would continue over the next decade.
Is there a reason for a recent surge in older entrepreneurs?
Change of Lifestyle
There are a number of reasons why the over 50s age group are keen to invest in business ventures later in life. On popular reason is that many are looking to escape the inflexible nature of the 9 to 5 office grind after decades of work and want to create a more manageable schedule that works for them. The Covid crisis has forced a lot of workers to re-assess how they want to not only live, but how they work too. Remote working had enabled a lot of individuals to refresh their working styles and empowered them to leave jobs and strike out on their own to be their own boss.
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Additional capital
Many over the age of 50 have a much higher level of savings and capital than those in their early 30s and they may wish to invest in a new venture to help contribute to a financially secure retirement with the promise of extra income.
Tough employments prospects
Due to ageism within certain industries, many older workers have found themselves unlucky in new job searches as they have found themselves being passed over for younger workers. In an effort to combat this, many decide to forge the traditional job seeking route and decide to create their own lucrative opportunities.
Benefits of recruiting a mature franchisee
By taking on mature franchisees within a franchise network, the parent company is gaining a business owner with a wealth of knowledge and experience behind them. A franchisee in their 50s has decades of business acumen and skills to bring to the table which is a huge positive when trying to launch a new franchise off the ground. With so many years of experience behind them, mature workers are able to adapt and thrive to new training and processes smoothly.
Many of these franchisees find the change exhilarating and bring a fresh new energy to the business.
Of course, the biggest barrier to franchise growth is finding suitable franchisees.
But Richard Holden, Head of Franchising at Lloyds TSB, pointed out that the government's small firms loans guarantee scheme, coupled with an increasing number of franchisee resales means the market is becoming an increasingly attractive option for older investors.
He said: "These higher investment franchise opportunities are likely to attract more mature candidates, who have the life skills, the experience, and the financial stability to successfully take on an established franchise.
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