although the image of the young entrepreneur didn’t hold when we looked at the data.
Past studies of high-growth entrepreneurship along with age have yielded conflicting results, based in part on little along with selected data sets in which researchers studied.
To examine the question more definitively, we conducted an internal project at the U.S. Census Bureau. in which enabled us to examine all businesses launched from the U.S. between 2007 along with 2014, encompassing 2.7 million founders. We compared founder age to firm performance measures, including employment along with sales growth, as well as the “exit” by acquisition or IPO.
Successful entrepreneurs are much more likely to be middle-aged, not young. For the top 0.1 percent of fastest growing fresh businesses from the U.S., the average age of the founder from the business’ first year was 45.
Similarly, middle-aged founders dominate successful exits. By our estimation, a 50-year-old founder can be 1.8 times more likely than a 30-year-old founder to create one of the highest growth firms. Founders in their early 20s hold the lowest likelihood of building a top-growth firm.
Why could entrepreneurs get better with age? the item’s not clear, although we have a few theories. More seasoned entrepreneurs may draw on greater experience in management or deeper industry-specific knowledge. They may also have greater financial resources along with more relevant social networks to leverage the founder’s business idea. For example, our study showed in which prior work experience from the startup’s specific industry more than doubled the chance of an upper-tail growth success.
Even some of the most famous young founders tend to peak toward middle age. For example, Steve Jobs along with Apple found their blockbuster innovation with the iPhone, released when Jobs was 52.