Encore entrepreneurs’ earnings exceed their expectations, and their secret to success is confidence, reveals Hiscox Encore Entrepreneur Report
New York, NY – March 15, 2021 – Hiscox, the international specialist insurer, released a study that reveals the underlying motivations of encore entrepreneurs – those who start a business at the age of 50 or over. It also sheds light on the qualities that contribute to their success and the pandemic’s potential to influence more of this demographic to start their own businesses. The Hiscox Encore Entrepreneur Report surveyed 400 small business owners in the US who started their first business at age 50+, between November 24 and December 4, 2020.
Key findings specific to the 400 business owners surveyed include:
- It is never too late to pursue your dreams: This survey found that the primary reason for encore entrepreneurs starting their business was wanting to pursue a personal passion (24%).
- Taking it easy isn’t a part of the plan: As encore entrepreneurs progress, they commit more time to their businesses; those who are 50 to 55 -years-old worked an average of 43 hours a week, while those aged 56 to 61 put in 46 hours a week, and 62 to 67 year-olds were on the job 47 hours a week.
- The reality of earned income exceeded expectations: Forty-five percent of respondents expected to earn more income compared to their salary at their last full-time job, and 68% went on to do exactly that. For those respondents, it took an average of two years to earn the same or more income.
- Encore entrepreneurs achieve what they set out to do: Among respondents who started their businesses primarily to make more money or for greater financial independence, 73% were successful in earning more money than they did previously.
- Confidence is the biggest advantage for this demographic: Having more confidence is the biggest advantage to starting a business at age 50 or over, cited by 43% of respondents and surpassing the advantages of having additional resources, connections and experience.
- Marketing and digital skills are in high demand: When respondents started their businesses, 35% would have liked to have had more marketing experience, and 33% desired additional knowledge of e-commerce fundamentals.
- Many would not survive another economic shutdown: The vast majority (71%) of respondents have suffered a major or moderate impact from the pandemic. If there were to be another economic shutdown in 2021, 40% of respondents do not think their businesses would survive. The impact of COVID-19 will also be felt far beyond the lockdowns, as 31% of respondents report that they will retire later than planned due to the pandemic.
- Encore entrepreneurs are resilient and likely to increase in number: Sixty-three percent of respondents think it is likely that more people aged 50+ will shift from full-time employment to starting their own businesses, as a result of the pandemic.
- A lack of fundamental business protection: Despite their passion and sacrifices made for their businesses, 42% of respondents reported that they do not have business insurance.
About the Study
The Hiscox Survey was conducted by Wakefield Research between November 24 and December 4, 2020, among 400 US small business owners, who started their first business at age 50+, using an email invitation and an online survey. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary , plus or minus, by more than 4.9 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
About The Hiscox Group
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle.
The Hiscox Group employs over 3,100 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the USA, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS. In the US, Hiscox small business Insurance is underwritten by Hiscox Insurance Company Inc., a Chicago-based insurance company.
Our values define our business, with a focus on people, courage, ownership and integrity. We pride ourselves on being true to our word and our award-winning claims service is testament to that. For more information, visit www.hiscoxgroup.com.
The content provided above is provided for general informational purposes and is not intended, nor shall it be deemed, to be a solicitation of insurance with regard to any particular or specific person or entity.
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