Understanding the Grey Entrepreneur: A Review of the Literature

Abstract The role of older business operators has been largely ignored in contemporary entrepreneurship research, even though 31% of all Australian SMEs are owned and operated by persons over the age of 50. Long term demographic trends throughout the developed world suggest that such entrepreneurs will come to play an increasingly important part of economic activity, as populations age and the traditional workforce age cohort declines. This paper provides an overview of current research into the phenomena of the so-called “grey entrepreneur” (also variously known as senior entrepreneurs, older entrepreneurs, third age entrepreneurs, elder entrepreneurs and senior-preneurs), drawing on research from Australia, the United Kingdom, New Zealand and the USA. Little direct information exists about the structure, performance and features of firms operated by grey entrepreneurs, and how they compare with their younger counterparts. The data does indicate that a majority of older entrepreneurs are male, although increasing numbers of older women are also operating their own business. A number of potential factors appear to have an impact on the activities and likely success of grey entrepreneurs. Potential advantages that older entrepreneurs can possess include greater experience, superior networks and more financial resources. Some of the theorized problems working against many grey entrepreneurs are failing health (energy levels), lower education levels, family life cycles, and the broader social framework in which older people operate. Many important issues relating to this phenomenon still require more investigation. Research problems in this area include differences in terminology and definitions, determining the appropriate age point at which a person can rightfully be said to qualify as an “older” entrepreneur, and the practical problem of operationalising entrepreneurial activities in the marketplace.