Senior Entrepreneurs: New Engines for a New Economy

Transcription

1 Senior Entrepreneurs: New Engines for a New Economy

2 Presenters 2

3 Test Your Powers of Expertise Against Your Curiosity Through This Exercise 3

4 Scope of Session Overview of the social, environmental, and economic impact of senior entrepreneurship in today's global longevity economy and what is needed to create and sustain it. Senior Entrepreneurship in the USA today Elizabeth Isele Senior Entrepreneurship: What s Happening in Turkey - Kutlu Kazanci Senior Entrepreneurship and Environmental Sustainability Kathy Sykes Creating Senior Entrepreneurs eprov Studio Workshops Harnessing the individual and collective experience of older adults to boost prosperity for all ages Building an infrastructure of cross-sector support (programs, capitalization, policy and research) to nourish and sustain senior entrepreneurship 4

5 Senior Entrepreneurship in the USA Today Elizabeth Isele Co-Creator and Founder, eprovstudio.com, Babson College, Wellesley, MA Co-Founder and CEO, SeniorEntrepreneurshipWorks.org, Baruch College, New York City, NY 5

6 Paradox of the New Longevity Economy Passive vs. Proactive Passive: Seniors, aged 50+, as a $3 Trillion Market Opportunity in the US - $15 Trillion Globally Proactive: Seniors, aged 50+, Creating and Driving Economic Markets in the US 6

7 Seniors, aged 50+, as a Market Opportunity Passive Drivers Greed too many innovators, brand managers, marketers, and product designers, who ignored this market for decades, now want a piece of the trillion dollar pie. Innovation based on what can be sold to this huge and growing, at 10,000 a day, demographic. Products such as medical alert bracelets and adult diapers are palliative in nature. They highlight and reinforce the debilitating effects of aging. Product innovation aimed primarily at the older olds, age 75 and up. 7

8 Seniors, aged 50+, Creating and Driving Economic Markets Proactive Drivers This is a highly creative, powerful, and extraordinary demographic courageous, enlightened and willing to fight for what they believe in. We need to unleash their potential. Recent research in the United States from the MetLife foundation documents 34 million boomers want to start their own businesses. Contrary to a commonly held perception that only young people engage in business start-ups, research by the Kauffman Foundation for Entrepreneurship has established that the highest rate of business start-up activity over the past decade has consistently been among people in the 55-to-64 age bracket. According to the Kauffman Foundation's Index of Entrepreneurial Activity, 1 in 5 new entrepreneurs in 2011 were aged 55-64; almost half of all new entrepreneurs were between the ages of 45 and 64 and this cohort continues to grow. The 2013 GEM (Global Entrepreneurship Monitor) data documents that 50% of new businesses launched by individuals aged 50+ are still in business after five years. Contrast this to the US Bureau of Labor Statistics (BLS) and the Census which note: "The typical new business started in the United States is no longer in operation five years after being founded." 8

9 Seniors, aged 50+, Creating and Driving Economic Markets Proactive Drivers (cont.) Social Benefits and Economic ROI Individual's health, well-being, and economic self-reliance. Communities' (including employers') health and well-being as in Age Friendly Cities and environmental health (boomers building green businesses), and Economic (workforce development, job creation, improved productivity and wealth development as senior entrepreneurs pour investment dollars back into their communities). Rather than taking jobs away from the younger generation, they are creating jobs for them and simultaneously boosting their local and our national economy. Often, too, as this NY Times article, Retiree Start-ups with Age and Youth as Partners, indicates, seniors are working hand-in-hand with the younger generation to create new businesses. And, according to research from the AEO (Association for Enterprise Opportunity), if one in three micro-businesses in the United States hired an additional employee, the US would be at full employment (see 9

10 Seniors, aged 50+, Creating and Driving Economic Markets Proactive Drivers (cont.) Social Benefits and Economic ROI Senior Entrepreneurs and employed adults, aged 65+, contribute $120+ billion in federal taxes* annually to support federal programs and reduce dependency on entitlement programs. Senior Entrepreneurs present new market lending opportunities for lenders. New digital business opportunities. Increased demand for Technology (products, services, e-commerce) to facilitate senior business startups. More than 60% of senior startups are green businesses - huge impact on environment. Intellectual capital: Engaging seniors in both business creation and in supporting new and existing entrepreneurs would maximize the wealth of experience they possess that can be lost on retirement, cultivate intergenerational learning and ensure knowledge transfer. 10

11 Seniors, aged 50+, Creating and Driving Economic Markets Proactive Drivers (cont.) Social Benefits and Economic ROI Collaborative entrepreneurship. Seniors, who may not wish to launch a business of their own, represent a valuable resource for other entrepreneurs. Retired business people have precious know-how and experience that can make it easier to start and run a company than it might otherwise be for an inexperienced founder. We should be encouraging motivated seniors to serve as voluntary mentors, potential buyers of or investors in businesses, or as temporary managers to assist vulnerable start-ups or businesses in transition. Senior Entrepreneurs are driving economic recovery in our communities and in our country, and their experience, extensive networks, and problem-solving expertise mitigate the risk of failure endemic among new business startups. Today's Senior Entrepreneurs are creating a whole new paradigm for aging. The world is beginning to recognize seniors as assets and not liabilities - and it's not a moment too soon! 11

12 Senior Entrepreneurship: What's going on in Turkey? Young & Senior Entrepreneurship and Collaboration Kutlu Kazanci Director, Entrepreneurship Council, Sabanci University Istanbul, Turkey 12

13 Demographics and Unemployment Keep Entrepreneurship Debate Focused on Youth Entrepreneurship Entrepreneurship incentives are largely focused on youth as it is still a relatively young population with high umemployment: Median age of the population of Turkey was 30.1 in 2012, it will increase to 34 in 2023 Tax breaks for first time tax registrants starting businesses Business plan competitions with age limits Programs at universities In Turkey, the retirement age now around 45 for men and 41 for women*. Turkey abolished its standard retirement age in 1969 A worker's years in the labor market determine when he or she can claim benefits. Essentially about 25 years of service are required in Turkey. Turkey has some of the lowest age for receiving full retirement benefits * According to a report in October 2000 by the Organization for Economic Cooperation and Development 13

14 Turkish Culture Has Opportunities and Challenges for Entrepreneurship and Collaboration High power distance (score of 66) : Dependent, hierarchical and ideal boss is a father figure. Centralized power. Employees expect to be told what to do. Control is expected. Communication is indirect and the information flow is selective. Low Individualism (score of 37): A collectivistic society. People belong to in-groups (families, clans or organisations) who look after each in exchange for loyalty. Communication is indirect, open conflicts are avoided. Nepotism may be found more often. Masculinity / Femininity (score of 45) : Turkey is in the middle but more on the feminine side. Soft aspects (leveling with others, consensus, sympathy for the underdog) are valued and encouraged. Leisure time is important, it is the time when the whole family, clan and friends come together to enjoy life. Uncertainty avoidance (score of 85): Turkey has a huge need for laws and rules to minimize anxiety. Long term orientation: No score available. * According to The Hofstede Centre 14

15 The opportunity seems to lie with successful managers and entrepreneurs who are staying in the game and can act as role models. Some successful retired business people remain active as lecturers, advisors, mentors and consultants. There are a few networks and groups for retireees of prominent groups in Turkey that facilitate this. In the internet space, we have our first internet angel investors, mostly now in their 40s and 50s. They start new businesses, invest in new busineses, act as angel investors and mentors. Turkish government is promoting angel investing and has introduced tax breaks. Numbers of angel investing communities are increasing. A few banks are promoting this. Besides the level of activity of entpreneurship at student and recent graduate levels, a new segment of entrepreneurship is occuring from people who work in the corporates for 5-20 years and then want to start their own business. There is some reverse brain migration in the senior population and they are more active in the business community. 15

16 Senior Entrepreneurship and Environmental Sustainability Kathy Sykes, MA Senior Advisor, Aging and Sustainability Washington, DC 16

17 Sustainability Brundtland Report 1987: Sustainable Development meets the needs of the present without compromising the ability of future generations to meet their own needs. Environment Economy Society 17

18 Seniors Starting Most Businesses Americans age 65+choose self-employment, at a faster rate than any other age group. Although the oldest segment of the population has long been the most likely to be self-employed, some might find it surprising that it is also the fastest growing segment of entrepreneurs. Source: inshare Magazine, July 2009 and US Bureau of Labor Statistics 18

19 Seniors Starting Most Businesses Source: 19

20 Intergenerational Programs with Sustainable Benefits: Economic, Social, and Environmental "Driving Away Hunger Ann Arbor, MI Meals on Wheels and More specially-designed bikes and cooler-holding carts Austin, TX We re going to be using our school buses, which stand vacant for a large part of the day, to shuttle older New Yorkers to and from grocery stores. Mayor Michael Bloomberg 20

21 Founder and CEO of Encore.org Home of the Purpose Prize Purpose Prize $100,000 each for improving their communities and the world. Encore careers purpose, passion and a paycheck in your second act. Marc Freedman 21

22 Purpose Prize Winner 2007 Sally Bingham, Episcopal Priest Leading a religious response to global warming 22

23 Winner 2012 Bhagwati Agrawal Exec. Director, Sustainable Innovations Inc. Brings safe drinking water rain from rooftops to thousands of villagers in India. Harvesting Innovations for People 23

24 Purpose Prize Winner 2012 Thomas Cox Volunteer Coordinator Maine Attorneys Saving Homes (MASH) 24

25 Purpose Prize Winner 2008 Arlene Blum Founder, Green Science Policy Institute 25

26 Purpose Prize Winner 2006 Bernard Flynn ( ) Co-Founder, River Partners Restoring river eco-systems for sustainable flood control and habitat preservation. 26

27 Patrick Althizer Founder, Photo Safari Yosemite 27

28 Scott Adams Cartoonist Creativity is allowing yourself to make mistakes. Art is knowing which ones to keep. 28

29 Creating Senior Entrepreneurs

30 A tool to ignite ideas through ET&A (Entrepreneurial Thought and Action) and Improvisation for seniors to re-imagine/renew their lives rather than retire from them. 30

31 eprov Studio Shaping entrepreneurs of all kinds Courtesy, Mischa Richter 31

32 eprov Studio and of all ages, with visions large and small! 32

33 eprov Studio Who I Think I Am vs. How Others See Me? Individual Introductions Exercise Courtesy, Mischa Richter 33

34 What Is ET&A (Entrepreneurial Thought and Action)? The world's most powerful force for social and economic value creation. A dynamic methodology that was created and is being taught every day at Babson College, the # 1 school of entrepreneurship. It puts entrepreneurship in the hands of the many not the few. It extends entrepreneurial activity to Entrepreneurship of All Kinds to impact individual's lives, work and communities. A method for creating the things that really matter to you by taking swift, confident, and smart action when faced with the unknown. 34

35 What Is Improvisation? Theatrical improvisation was developed to help actors solve problems on stage. Rather than halting a performance because lines were forgotten, actors would improvise (make-up) dialogue and the audience would not recognize any irregularity. The focus is on creating scenes and building stories with very limited physical resources. Successful improvisation actors understand the importance of Listening to others without prejudgment Trusting that the group (not the individual actor) will solve a particular problem Building on a storyline in creative but useful ways Letting go of the need to control a situation, and Thinking quickly and acting under pressure to maintain momentum. 35

36 What Is eprov Studio Improvisation? Using Improvisation to experience creativity and design thinking, the eprov Studio "playshops accelerate ideation. The improvisers (eprov workshop participants) work together responsively through a series of Yes, and exercises, providing constructive feedback, identifying needs, and determining ways to help one another in a process of co-creation. Mary Catherine Bateson, writer, cultural anthropologist and daughter of Margaret Mead, says in her new book, Composing a Further Life:The Age of Active Wisdom, that with its unprecedented levels of health, energy, time, and resources, aging today is an improvisational art form calling for imagination and willingness to learn. 36

37 Building Confidence Through Improvisation Improvisation requires one to create on the spot while being fully exposed. Improvisation skills help to eliminate the fear factor, allowing ideas to flow freely in order to create scenes and build stories. Individuals who go through eprov training acquire a heightened sense of self and a greater tolerance for failure. Don t let your fear of being wrong paralyze you. Thomas Alva Edison, inventor of the light bulb, the motion picture camera, and the phonograph, among many other things, did not think of his experiments in terms of success or failure, but rather as learning. He conducted 10,000 experiments in his efforts to create the first storage battery! Results! he said. I have gotten a lot of results. The best part is that now I know what doesn t work and won t have to be tried again. 37

38 Building Confidence Through Improvisation It takes courage to believe in your self, to start something new. Thinking of courage reminds me of The Wizard of Oz, celebrating its 75th birthday and record of the most watched movie of all time. I treasure this quote about the movie s cowardly lion from Mary Anne Radmacher, Courage does not always roar. Sometimes it is a quiet voice at the end of the day, saying I will try again tomorrow. 38

39 eprov Studio s Guiding Principles Reality based - no rose colored glasses allowed. Replace the noun entrepreneurship with the verb entrepreneuring. Take the intimidation out of entrepreneuring. Recognize there are many different kinds of entrepreneurs. Anyone can become an entrepreneur you don t have to be born one. Entrepreneuring is not an individual sport doing it in community amplifies the results. Unleash the potential for everyone to create a more just, equitable, and mutually beneficial civil society. And, as our friends at The Institute for the Ages have so aptly noted, potential never gets old! 39

40 How Does eprov Studio Work? One Minute Snapshot 1. Know what you want. 2. Act with the means at hand. 3. Be alert and open to what is and what you are getting. Make reality your friend and asset; build off what you find. 4. Take steps based on your means and what you can afford and want to pay to play. It s not what you re going to do; it s what you re going to do next. Spread risk and acquire resources as you go along. 5. Bring other people with you. 6. Remain flexible in what you want and how you do it based on your most current insights, until you achieve your goal. 40

41 How Does eprov Studio work? (Know Who You Are and What You Bring to the Table) LSI (Life Science Investigation)* or Life's Pivotal Points Exercise Identify Skills and Experience you can bring forward from your 50+ years of living and working. Identify one accomplishment /pivotal point from each decade of your life. Prioritize those accomplishments. Recognize skills you drew upon to achieve them. Identify barriers you overcame and assets you had to help you overcome them to achieve the breakthrough. Look for patterns and relationships between what you have achieved and what you desire to achieve in the future. 41

42 How Does eprov Studio work? (Know Who You Are and What You Want) Explore the mindset of an entrepreneur - do you understand what it takes to be an entrepreneur? - Attitude (Positive, Resilient) - Creativity - Character Traits/Work Ethic - Passion to persevere - Time - Health - Financial Position - Risk Tolerance - Skills - Hard (financial, communication and technology) and Soft (management and leadership) Your Goals - is your vision aligned with the choices and sacrifices you will need to make? Two great online self-assessment tools: The Entrepreneurial Dimensions Profile (EDP) and The Venture Assessment Tool (VAT). 42

43 How Does eprov Studio work? Mine your hidden talents and explore the possibilities with other players in this workshop. Someone once said, The greatest wastes are unused talents and untried ideas. eprov Studio s Yes, and improvisation exercises help you unleash ideas you may have quietly percolating on a back burner. Do you have a hobby, for example, that could be a good business venture? Check out Stan Munroe, who s rebuilding the world one toothpick at a time! 43

44 How Does eprov Studio work? Check out Mandy Aftel, perfume entrepreneur extraordinaire! After 30 years as a psychological therapist, this 62-year-old has created a multi-million dollar business. Vogue Magazine calls her "one of the fragrance industry's most creative thinkers. 44

45 How Does eprov Studio work? Mannequin Madness Judi Henderson Townsend launched what she calls "Townsend's Body Shop" in Oakland, California. 45

46 How Does eprov Studio work? Focus on resources rather than goals: Stan Munroe used toothpicks. Mandy Aftel mixed natural fragrances to create new and exotic luxurious perfumes. Judi Townsend sells, rents, repairs, and recycles used, unwanted mannequins and their body parts. 46

47 Resources The Red Armchair, Picasso Did you know that Picasso painted some of his masterpieces, like The Red Armchair, with ordinary, commercial house paint? 47

48 Are You a Crazy Quilter or a Puzzle Aficionado? Crazy Quilt vs. Puzzle Exercise 48

49 Crazy Quilter = Entrepreneurial Thinker Uses Resources (Fabric at Hand) to Create Something New 49

50 A Crazy Quilter and ET&A Uses fabric at hand to create something original Often works in quilting groups Other quilters bring additional fabric (resources) Resources depend on who you know Design emerges over time Every action expands possibilities Output depends on human action Not tied to a plan 50

51 Puzzle Aficionado = Managerial Thinker Puts Existing Puzzle Pieces Together to Reach a Goal 51

52 A Puzzler vs. ET&A Goal driven - end goal (completed puzzle) is quickly established and definable Puzzler often works alone who you know doesn t matter Resources (puzzle pieces exist) no room for additional resources Fixed design is clearly established fit all the pieces together. No flexibility Get organized and set strategy for solving puzzle expediently Execute the plan Measure progress Complete the puzzle Goal achieved 52

53 Puzzles may be more satisfying, but the world increasingly offers us mysteries. Treating them as puzzles is like trying to solve the unsolvable an impossible challenge. But approaching them as mysteries may make us more comfortable with the uncertainties of our age. Greg Treverton Director of the RAND Center for Global Risk and Security 53

54 Creativity Creativity is something we are all born with, but it must be cultivated with care and intention. eprov participants nourish their creativity through a new way of seeing: themselves the world around them resources opportunities 54

55 Creativity Creativity is also something we must approach proactively, unleashing our curiosity to guide our explorations. 55

56 eprov Studio s Idea Market Rocket pitch life/business ideas are tested and assessed and assumptions challenged by the working group to determine what will work best (there are no failures in improvisation) and to accelerate the ideation to action process. Practice the methodology of acting, learning, and building on ideas. Maximize workshop resources, especially human capital, to co-create. eprov workshop participants work together responsively through a series of Yes, and improvisation exercises, providing constructive feedback, identifying needs, and determining ways to help one another in a process of co-creation. 56

57 eprov Studio s Idea Market (continued) Participants learn how to incorporate feedback to reframe or fine tune ideas and opportunities to align their desire and goals by thinking and acting smartly. Acting smartly means: Knowing what you want Taking small steps with the means at hand - affordable risk Making sure to step on firm ground- reality Building off what you find, good or bad Allowing workshop colleagues and friends to help Not what you are going to do, but what you are going to do next! 57

58 ET&A Acting Smartly Worksheet 58

59 How to Sustain the Entrepreneurial Momentum Generated in the eprov Studio Workshops? Practice Workshop Participants Leave with a Blueprint for Creating their Future A means to capture and articulate - through a simple plan, prototype, or drawing - their ideas A methodology to practice learning, building and acting on their ideas Strategies to amplify their resources by learning how to enroll others A Community (real and virtual) of eprov Fellows to Continue Acting, Learning, and Building Together Ongoing Support (direct and online) Provided for Each eprov Studio Workshop Center, Includes Curriculum Materials, Training Tools, and a Networked Community of eprov Alum, Trainers, and Mentors 59

60 How Can You Harness the Individual and Collective Experience of Older Adults to Boost and Sustain Prosperity for All Ages? Use Your Curiosity to build new and innovative alliances among public/private stakeholders (including those in this room and others at this conference) invested in the health and well-being of seniors and individual as well as community economic self-reliance Develop Programs more entrepreneurial education and training programs, including (intergenerational programs) Advocate for New Public Policy that recognizes older adults as assets and not liabilities Generate New Research Initiatives to document the social, environmental and economic impact of seniors contributing to our Longevity Economy Create New Methods of Capitalization for boomer business startups 60

61 Three Quotes I d Like to Leave with You Today From the English novelist, George Eliot ( ) It s never too late to be who you might have been! which we d tweak into the proactive voice to say, It s never too late to be who you desire to be! 61

62 From Sir Winston Churchill ( ) To each there comes in their lifetime a special moment when they are figuratively tapped on the shoulder and offered the chance to do a very special thing, unique to them and fitted to their talents. What a tragedy if that moment finds them unprepared or unqualified for that which could have been their finest hour. And, he also said, Never, never, never give up! 62

63 From the Pulitzer Prize-Winning Poet, Mary Oliver ( ) Tell me, what do you plan to do with your one wild and precious life? (from The Summer Day ) 63

64 Be ProActive Unleash Your Potential! What Are You Going To Do, NEXT 64