Older Entrepreneurs Are Launching More Startups Than Gen Z

Older entrepreneurs are defying stereotypes and leading the charge in new business creation. Research from the Kauffman Foundation, MIT, and LinkedIn shows that founders aged 45 and above are launching more startups and achieving higher success rates than their Gen Z counterparts, reshaping the narrative around age and innovation.

1. Startup Rates by Age Group

The Kauffman Indicators of Early‑Stage Entrepreneurship show that the 45–54 age cohort has the highest rate of new business creation at 0.39 percent of the population, with those aged 55–64 close behind at 0.38 percent Kauffman Foundation. By contrast, the 20–34 demographic encompassing most Gen Z founders registered a startup rate of just 0.22 percent, down from its peak of 0.28 percent in the late 1990s.

This means that, per 100,000 adults, nearly 390 individuals aged 45–54 began new ventures in a given month—compared with only 220 young adults. The data underscore a steady upward trend in older‑founder activity over the past two decades, while youth startup rates have plateaued or declined.

2. Rapid Growth Among Senior Founders

A January 2025 Forbes analysis of Kauffman data highlights that the average age of successful startup founders is 45, and that individuals aged 55–64 represent one of the fastest‑growing segments of new entrepreneurs . From 2015 to 2024, the number of first‑time founder applications from the 55–64 cohort climbed by 35 percent, outpacing all other age groups.

This surge reflects both economic necessity—such as delayed retirements—and opportunity‑driven motivations, as seasoned professionals leverage decades of industry experience, networks, and capital to launch second‑career ventures.

3. Why Older Founders Thrive

Several factors help explain why older entrepreneurs are now outpacing their younger peers:

1. Deep Domain Expertise: Founders with years of corporate or technical experience bring intimate knowledge of market gaps and operational challenges. An MIT study found that founders with at least three years of prior industry experience are up to 85 percent more likely to succeed than inexperienced peers.
2. Robust Professional Networks: Senior entrepreneurs often have expansive networks of former colleagues, clients, and mentors critical for customer acquisition, fundraising, and recruiting talent.
3. Financial Stability and Access to Capital: With established careers and retirement savings, older founders face fewer personal financial pressures and can bootstrap ventures or secure favorable loan terms.
4. Risk‑Adjusted Ambition: Having navigated professional setbacks, late‑career entrepreneurs may approach risk with pragmatism, balancing innovation with conservative financial management.

4. Gen Z’s Distinct Startup Profile

Gen Z founders—those aged roughly 18–24—tend to launch digital‑native startups, often in social media, content creation, and niche e‑commerce. Deloitte’s 2025 Gen Z survey reports that while younger entrepreneurs are ambitious—89 percent believe their work should have social impact—only 6 percent list leadership or business ownership as a primary career goal.

Moreover, nearly 48 percent of Gen Z say they feel financially insecure, a factor that may lead them to delay major entrepreneurial bets or prefer side‑hustles over full‑scale startups.

5. Industry Variations in Age Dynamics

• Technology & Software: Older founders excel in enterprise software, leveraging legacy‑system expertise to modernize workflows. Gen Z, by contrast, dominates consumer‑facing app and content platforms but faces fierce competition and lower average funding levels.
• Healthcare & Biotech: Senior founders with clinical or regulatory backgrounds are driving innovations in med‑tech and telehealth—sectors where deep domain knowledge and compliance experience are essential.
• Retail & Consumer Products: Younger entrepreneurs often enter digitally native verticals (e.g., DTC brands), while older founders revitalize legacy brands or niche manufacturing with operational know‑how.

6. Case Studies: Late‑Career Launches

• Morris Chang, TSMC: At 55, Chang founded Taiwan Semiconductor Manufacturing Company, now a global chipmaking powerhouse—a canonical example of late‑career impact.
• Bernie Marcus, Home Depot: Co‑founded Home Depot at 50, scaling it into the world’s largest home‑improvement retailer. His success underscores the potential of veteran leadership in consumer retail.
• Kay Miller, Adventure Kits: A former elementary‑school principal, Miller launched an educational toy company at 58, leveraging her curriculum expertise to capture a unique market niche.

7. Barriers Young Founders Face

Despite enthusiasm, Gen Z entrepreneurs frequently cite hurdles:

• Access to Funding: Younger founders lack collateral and credit history, making traditional loans harder to secure.
• Regulatory Know‑How: Navigating complex licensing, tax, and compliance regimes requires experience often absent among recent graduates.
• Network Gaps: Without decades of professional contacts, young entrepreneurs invest more time building relationships before market entry.

8. Implications for Investors and Policymakers

The shift toward older‑founder dominance suggests that venture capital and support programs may need realignment:

• Investor Strategies: Funds might expand criteria beyond “youthful disruption” to value seasoned expertise and lower‑risk profiles.
• Startup Accelerators: Programs historically targeting recent graduates could diversify cohorts to include mid‑career and senior entrepreneurs, tailoring mentorship to different life stages.
• Policy Incentives: Governments could offer age‑neutral startup grants, tax credits for late‑career founders, and training subsidies to capitalize on experienced talent pools.

9. Best Practices for Aspiring Older Founders

1. Leverage Your Network Early: Reconnect with former colleagues and industry contacts to validate ideas and identify co‑founders.
2. Embrace Modern Tools: Stay current on digital marketing, lean‑startup methodologies, and remote collaboration platforms to bridge any technological gaps.
3. Seek Age‑Friendly Mentorship: Join peer‑led groups or networks focused on late‑career entrepreneurship to share best practices and resources.
4. Highlight Transferable Skills: Position your decades of leadership, project management, and crisis‑management experience as key assets in your pitch materials.

Frequently Asked Questions (FAQ)

Bottom Line: The narrative of entrepreneurship as a young person’s game is being upended. Robust data show that older entrepreneurs—not Gen Z—are launching more new ventures, leveraging decades of experience to build higher‑success‑rate startups. As investors, policymakers, and support organizations adapt, the next wave of innovation may come not from college dorm rooms, but from seasoned professionals rewriting the rules of late‑career ambition.