Ageing and entrepreneurial preferences

Teemu Kautonen, Simon Down, Maria Minniti

Research output: Contribution to journalArticlepeer-review

148 Scopus citations


Previous research on age and entrepreneurship assumed homogeneity and downplayed age-related differences in the motives and aims underlying enterprising behaviour. We argue that the heterogeneity of entrepreneurship influences how the level of entrepreneurial activity varies with age. Using a sample of 2,566 respondents from 27 European countries, we show that entrepreneurial activity increases almost linearly with age for individuals who prefer to only employ themselves (self-employers), whereas it increases up to a critical threshold age (late 40s) and decreases thereafter for those who aspire to hire workers (owner-managers). Age has a considerably smaller effect on entrepreneurial behaviour for those who do not prefer self-employment but are pushed into it by lack of alternative employment opportunities (reluctant entrepreneurs). Our results question the conventional wisdom that entrepreneurial activity declines with age and suggest that effective responses to demographic changes require policy makers to pay close attention to the heterogeneity of entrepreneurial preferences.

Original languageEnglish (US)
Pages (from-to)579-594
Number of pages16
JournalSmall Business Economics
Issue number3
StatePublished - Mar 2014


  • Age
  • Demographic change
  • Entrepreneurship
  • Preference
  • Self-employment

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics


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