Recently, the U.S. Small Business Administration (SBA) celebrated National Small Business Week for the 50th consecutive year, with special recognition given to this major engine in the national, as well as the Tri-State 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 Hudson Valley and Fairfield County, Conn., region, 2010 U.S. Census figures show we have 78,606 small businesses in Westchester, Rockland, Putnam, Orange, Dutchess, Ulster and Fairfield counties as defined with fewer than 500 employees, including 71,348 or nearly 91 percent that have fewer than 20 employees. Overall, small businesses employ 606,654 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 Westchester County is exactly 40 years, the average among all six Hudson Valley counties is 39.6 years, and the average including Fairfield is also 39.6.
Additionally, figures show close to one-quarter or 24 percent of Westchester County residents, and similarly 23.8 percent of all residents in the seven-county area, 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 startups as well as all small business ventures. Last year, we created a special business unit dedicated to serving small business customers in our five geographic areas. Earlier this year, we supported that with enhanced business checking products designed to save small business owners money.
For those 50+ looking to start their own business, the 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, 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.
Karen Zalewski-Wildzunas is first vice president, small business team leader ”“ tri-state region.
