Are older entrepreneurs more likely to succeed?

Absolutely! A study by the MIT Sloan School of Management analysed data from 2.7 million company founders and found that the average age of successful entrepreneurs (those who have high-growth companies) is 45.

When looking closer at the success rates of entrepreneurs who have started a company, the advantage of age becomes even more pronounced. Older entrepreneurs show significantly higher success rates compared to their younger counterparts. Evidence suggests that entrepreneurial performance improves substantially with age, peaking in the late 50s. Founders in their 50s are three times more likely to succeed than those in their 20s. If you had to choose between two entrepreneurs based solely on their age, the wiser bet would be on the older individual.

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Likelihood of startup success by founder age

Data replicated from P Azoulay et al., NBER, 2018

But why?

Older entrepreneurs tend to have extensive industry experience, robust professional networks, and greater financial stability. Their work years provide deep market knowledge and honed management skills, while their professional connections offer valuable support and opportunities. Financially, they often have accumulated savings and better creditworthiness, easing the funding process. Additionally, older entrepreneurs are typically more prudent in risk management and benefit from established reputations and credibility, which help gain trust and negotiate effectively. These factors collectively enhance their chances of entrepreneurial success.