Strange as it may seem, age appears to be one of the important concerns of many aspiring entrepreneurs. Many ask themselves whether they are too young or too old to launch a company, whether they are past their prime and if they can handle the challenges of entrepreneurship.
In practice, any age is good for getting started on a business project. According to a recent study by Your Company Formations Ltd, the average age of startup entrepreneurs in the UK is between 35 and 40 years. However, this does not mean that this is the ideal age to start a business or launch a company. Every stage of life brings its share of benefits that will come in handy in an entrepreneurial endeavor.
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In the UK, the minimum legal age to start a company is 18 years. However, there is no minimum age to become a sole trader. Most young people (below twenty) who choose to become entrepreneurs have the advantage of having very few constraints (financial, family, etc.) in comparison with their elders. Their willingness to take on more risks, combined with a generally minimalist lifestyle, allows them to come up with innovative strategies that open new opportunities. They have the potential to become excellent entrepreneurs.
Entrepreneurs in their twenties are often fresh from college/university and have a rather extensive academic background. They have the required knowledge and excellent adaptability. They are usually full of many good business ideas, but they suffer from a slight lack of professional experience.
Beyond 40 years, life has added rich experiences to strengthen entrepreneurial skills, often from a long career. Aspiring business owners in this age group also have extensive professional networks, which they can use to set up a company more efficiently. On the financial front, they have access to more money, especially through accumulated savings and many are financially literate.
If there is a tendency to start a business rather late in the United Kingdom, this is not the case everywhere. In the UAE and China, for example, the average age of people starting their own businesses is 25 years. But these statistics generally concern one category of companies, start-ups. With other types of businesses and companies, studies have broken the myth of the young entrepreneur. Old age could have a positive impact on the success rate of a business start-up project. Some well-known billionaires including Julie Wainwright, Bernie Marcus, and Leo Goodwin didn’t get into entrepreneurship until after the age of 50. Here, several factors are attributed to their success in old age: multiple skills, personal maturity, emotional stability, financial literacy, work experience, and availability.
Apart from age, many other factors must be taken into account: product innovation, the relevance of a product, strategic positioning, window of opportunity, etc. In conclusion, there is no ideal age to start a company. If you have a good business idea, are motivated, mature, and determined, get started on your entrepreneurship journey, whatever your age. To learn more or get expert help with company formation in the UK, please visit Your Company Formations today.
