The number of companies started by those aged 50 and over in London rocketed last year to more than 67,000 – a YoY rise of almost 400%.
Companies House data analysed by Easy Offices showed a total of 67,703 companies were registered in the Capital in 2022 by ‘olderpreneurs’ which was equal to around one in three of the city’s new businesses. This compares with just 13,627 the previous year – 11% of the total launched.
To ensure the pandemic did not skew the results, Easy Offices also reviewed the data for a more normal landscape in 2019 and found just 10,530 companies were launched by those aged 50 and over.
Among the types of new businesses launched last year by this age group which saw dramatic increases were those registered as ‘retail sales via mail order houses or via the internet’, a category covering the online retail trade. More than 4,000 people aged 50 or over launched this kind of company, a YoY rise of more than 1,000%.
It has been reported previously that people being out of work and forced into furlough during the pandemic drove a wave of entrepreneurialism while a survey last year found 33% of over-55s harboured plans to start their own business. The main motivation across all age groups was to achieve a good work/life balance.
Across the country in 2022, the total of companies launched by ‘olderpreneurs’ was 217,622 against a backdrop of 782,726 which spanned across all ages.
In contrast, these figures come as Jeremy Hunt’s Budget in March announced the creation of ‘returnerships’, a type of apprenticeship which will be targeted at those over 50 looking to return to work. They will focus on flexibility and previous experience, cutting down the amount of training needed before participants can return to the workforce.
John Williams, CMO of Easy Offices, said: “There’s no age limit to starting a business and people who do this later in life bring a wealth of experience to the table. These figures show a significant jump last year in the number who decided to take the plunge, perhaps driven by the pandemic into taking their own path.
“We have seen the number of sole traders and small businesses looking for office space leap year on year. This trend is based on a lot of more experienced workers leaving behind their white collar jobs with blue chip companies and looking to start their own ventures after the pandemic. It is the rise of the midlife entrepreneur, similar to that we saw in the aftermath of the Global Financial Crisis in 2008.
“A diverse workforce is a more productive one and we need people of all ages to have the opportunity to create new and exciting businesses.”
