What Can Young Entrepreneurs Learn from Seasoned Ones? Everything

Relax if you’re in your 20s or early 30s and haven’t started your company yet. The dream might be to launch your small business in your early 20s, but the reality in the USA is quite different. According to 2021 statistics from the Small Business Association, there are 32.5 million small businesses in the US, making up 99.9% of all US businesses. More than half (54%) of America’s small business owners are over the age of 50. When is the best time to start a small business? Perhaps when you are older, more experienced, and wiser.

Don’t give up on your great business idea or problem, no matter your age. Research shows that people who start businesses in their 40s, 50s, and even 60s succeed as well as, if not better than, younger entrepreneurs. A study published in the January 2021 issue of the Journal of Business Venturing finds that entrepreneurs in their 50s succeed at roughly the same rate as those starting in their 20s. For example, the founders of Netflix, E-Trade, Zoom, and Home Depot were all older than 37 when they launched their companies.

The research, reviewing 102 previous studies that each examined an average of more than 600 entrepreneurs, suggests that younger entrepreneurs may be more aggressive and tech-savvy, while people in their 50s often start with more wisdom, financial capital, and business connections. Some experts theorize that younger entrepreneurs have better cognitive skills, greater awareness of current technologies and trends, and less resistance to disruptive change. While this may be true, such advantages rarely seem to outweigh experience.

So, what can you learn from older entrepreneurs? Plenty. Look at their advantages and try to gain some of those benefits earlier on purpose. Seek out an experienced entrepreneur as a mentor to accelerate your learning. Here are several things you can do to prepare for launching your startup by thinking like an experienced entrepreneur.

Industry Knowledge Matters

Whatever your passion or experience, if you like the industry you are currently in, then really understand it. Stay updated on the latest trends, read industry reports, and meet with several entrepreneurs in the industry. Gaining insights and perspectives on potential problems or shifts could lead to your startup.

Domain Experience is Important

If you ever start a company, your job title is not entrepreneur. You will be doing something in the startup, and your best contribution is to be an expert in that area. Whether it’s finance, marketing, project management, or analytics, prepare now to be the best you can be in your profession. As you join with other co-founders, hopefully, you will all be experts in your areas and create a powerful team.

Your Network is Key

Gen Z and Millennials seem to be less concerned with developing robust networks, which is a mistake. You can’t wait to build a network later when you might crucially need one. The time to build the foundation of a great network is right now. Look at your strengths and weaknesses; surround yourself with experts to negate any weaknesses and gain more insights.

Need a Growth Mindset

Carol Dweck from Stanford has built her research around studying mindsets, both fixed and growth. A fixed mindset believes intelligence is fixed at birth through DNA, while a growth mindset believes intelligence can be developed. Her research has proven that everyone has the potential for a growth mindset. Choosing to have a growth mindset is probably the most critical decision you can make as an entrepreneur.

Know Your Pathways to Entrepreneurship

Most people think they have to start a company from scratch, but there are multiple ways to become an entrepreneur. One of the fastest ways is to work for an entrepreneur and learn all you can. You can also buy an existing small business from a retiring baby boomer or buy a franchise business that already has good brand recognition and needs perfect execution in a new location.

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