This year’s celebration of National Small Business Week (June 17-21) will mark the 50th consecutive year the U. S. Small Business Administration (SBA) has designated a special week to recognize this major engine in the national, as well as the Capital Region’s, economy.
Statistics speak for themselves about the significance of small business. The SBA reports there are nearly 28 million small businesses in the U.S., representing 99.7 percent of all employer firms and employing almost half of all private sector employees.
These small businesses pay 43 percent of the total U.S. private-sector payroll and have created 64 percent of net new jobs in the 18 years leading up to 2011.
In the Hartford and New Haven MSAs, 2010 U.S. Census figures show we have 38,733 small businesses in Hartford, Tolland, Middlesex and New Haven counties as defined with fewer than 500 employees, including 33,270 or nearly 86 percent that have fewer than 20 employees. Overall, small businesses employ 507,909 individuals in this region.
But behind these numbers, the face of small business is changing — to one that is more seasoned than ever before.
National studies show more people over the age of 50 are starting small businesses today. These so-called “encore entrepreneurs” are the fastest growing group of new business owners in the U.S.
Why would seniors, at their stage in life, take on the financial and emotional risks of being an encore entrepreneur? The reasons are insightful.
Some seniors are financially secure and want to pursue their dream business at last. Or they are in a position to offer a not-for-profit business service, one meeting a social need and providing a positive community impact.
But other seniors are starting a business out of necessity. They need to supplement their retirement fund battered by the Great Recession or to find alternative employment in a difficult job market.
Locally, this age group is sizable. According to the 2010 U.S. Census, the median age for Hartford County is 39.9 years, which mirrors the average of 40.2 years among all four counties in the two MSAs noted.
Additionally, figures show nearly a quarter, 24.3 percent, of Hartford County residents, and similarly 24.4 percent of all residents in Hartford, Tolland, Middlesex and New Haven counties, are between the ages of 50 and 69 in the prime market segment for encore entrepreneurs.
Financial institutions, like First Niagara, are tailoring services to assist both senior start-ups as well as all small business ventures.
For those 50+ looking to start their own business, the U.S. Small Business Administration (SBA) also supports “encore entrepreneurs” through several partnerships, including one with AARP, and its own 50+ tool kit to help them start or own their business.
So as we salute the importance of small business this June, 50 is the magic number to keep in mind — 50 for the consecutive years of celebrating National Small Business Week and 50+ for the age group representing the hottest wave of new small business owners.
John Delgadillo is first vice president and small business team leader for First Niagara Bank in the New England Region.
