SENER - Silver Economy Network of European Regions

SIG Entrepreneurship 50+/60+ - Background & Objectives

The Background of SIG "Entrepreneurship 50+/60+

The demographic developments will result in a significant "age shift" of the population over the next 20 - 30 years. By the year 2020, half of the adults will be over the age of 50, and this centre of gravity will continue its upward shift thereafter. The key message from this is that the economic centre of gravity is moving from younger to older people.

This change in demographics will present the over 50 generation with significant challenges and opportunities, depending on what financial provision has been made to fund their retirement. Those with adequate pensions will be presented with opportunities to retire early and pursue other interests. Those with inadequate pensions may have to work longer into their 60's, or retire on a small state pension, which will have to sustain them for a good number of extra years. Whatever the financial background, people now in their 50's are realising that this is the critical decade for their future. It is the time in which you will consolidate the gains made, (e.g. financial and social capital), and plan the next phase of your life. It is also a time when many people question their direction and begin to think of changing to more fulfilling careers, or branching out to start new ventures.

Instead of retirement, many seniors are considering entrepreneurship. The earlier demands of family and career have receded somewhat, and with their immensely valuable business skills acquired through years of experience, many of this generation are seriously considering launching their own businesses. But where do you get help to start out on this road? Do you really understand the challenges, advantages and disadvantages of starting a business at a relatively older age?

Initiatives from Governments and the E.U. aimed at this section of the population have been directed at encouraging people to invest in pension products to "prepare for their retirement" and to re-skill people in this age group to re-enter the workplace. Some Governments are considering raising the pension qualification age which will force workers to remain in employment for longer than they had planned for.

The SIG "Entrepreneurship 50+/60+" of the SEN@ER Network has started an initiative to encourage and train seniors to create business opportunities for themselves, and to support those who have already made this decision. It will develop a multi-level training programme aimed at preparing people for the next phase of their lives and giving them the tools they need to make decisions about their future.

Who will benefit from this programme?

For the purposes of this initiative, four generations will be examined with a view to determining who is mostly likely to benefit from an Entrepreneur Programme.

The over 70's

Many in this group have no great financial wealth, and are surviving on small pensions or state benefits. The biggest asset they have is their home, and various initiatives are now being developed to offer equity release programmes, which can make life more comfortable. The majority here would not consider embarking on new ventures.

The Golden Years Generation 60+

This is the generation who are now about to qualify for defined benefit pensions. This is a guaranteed income for the rest of their lives, unaffected by stock, currency, or bond markets. It is the most generous form of pension, and is fast disappearing. This generation have property assets with good equity and little accumulated debt. They are in a very fortunate position relative to their parent's generation, and with better health and longevity, have a greater potential to take advantage of their position.

The Baby boomers Generation 47 - 60

This generation of baby boomers have very similar advantages to the over 60's, but with higher levels of home ownership and accumulated assets in property and other markets. This group have matured in an era of great change. They have embraced the concepts of active ageing, are Internet and IT experienced, and have a capacity and willingness to learn new things and embark on new ventures. They also have a different understanding of "retirement" and do not plan to stay in the same job for the next 10 - 15 years with no plans for the remainder of their lives after 65. They realise that this is the decade to do something different.

The Younger Generation 40 years and below

The longer-term economic outlook for this generation is not as favourable as their immediate seniors. This is due to a combination of factors including the changing nature of the employment market (many permanent jobs have been replaced with shorter term contracts). This generation is also finding it more difficult and expensive to get on the property ladder. They have higher levels of personal debt and consumer spending and will have to contribute a large part of their income to secure decent pensions.

The groups most likely to benefit from this programme will thus be in the mature baby boomers 50+ and the golden years generation between 60 and 70.

Development of a Programme Content

Entrepreneurship is not for everybody. Many people who have reached a certain comfort zone in terms of achievement are unlikely to venture into uncertain territory for fear of losing what they have got. For every venture that is started, failure is always a possibility as that is the nature of entrepreneurship. However, when you are older with plenty of life and work experience and reducing commitments, it might be a little easier to at least consider future possibilities. This is the basic objective of this programme.

A full suite of training programmes will be developed aimed at seniors who are considering future options open to them. These will range from examining barriers to business start ups, information and awareness raising courses, ideas generation and motivational speaker workshops, and leading upwards to more detailed training on pre-business start ups, and mentoring of those already at the early start up phase. Each module will have the underlying objectives of encouraging entrepreneurship and business development.

How will the Programme be delivered?

It is envisaged that this initiative will be designed and developed by the SEN@ER regions involved, with the Lead Partner role taken by the Mid-East Regional Authority in Ireland. Pilot projects can then be delivered in each region at a local level to gauge the effectiveness of the idea in different countries. The training programmes can be delivered by different organisations in each region, depending on what local resources are active in this area. The overall theme would be the same with each region delivering a branded seniors training programme.

An ongoing initiative beyond 2010

This programme is aimed at changing the way seniors are perceived at many levels in society, and how they perceive themselves. It will challenge the preconceived ideas that people in their middle years should expect only to retire and play no further economic role in their communities. It will encourage them to use their talents and experience built up over many years to benefit themselves and their families and their communities in general. It is aimed at changing mindsets not providing jobs, and will examine the potential, not the problems of an ageing society.

Next Steps

This project will have a four-year time scale (2009 - 2013) with a possible continuation beyond that in other regions and E.U. countries. It is hoped that European funding will become available through an Interreg IV-B NWE application which has been submitted on 3 October 2008.

 
 
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