Mar 09
Guest post: Silver start-ups could come of age
By Luke Johnson
Originally published in the Financial Times February 17 2009
I got it wrong again. A few weeks ago, I wrote that only young innovators could save our way of life. But in truth there is just as much entrepreneurial potential among the greying generation. Society must do more to encourage them.
My favourite manual on the subject is an out-of-print autobiography called After I Was Sixty, by Roy – later Lord – Thomson. In 1953, aged 60, he suffered two blows. First, his wife of many decades died; then his business partner of 20 years, Jack Kent Cooke, left to run another business. So he left his modest radio company in Canada for Edinburgh and, almost on a whim, bought the struggling newspaper The Scotsman. A year later, he founded STV, the first commercial broadcaster north of the border. It was an astounding success, making a return of at least 1,500 per cent for its original subscribers. It was he who muttered the immortal phrase describing a television franchise as a “licence to print money” – not quite such a valid statement today. He went on to become a pioneer backer of North Sea oil, and later launched Thomson Holidays, Britain’s first package tour operator. Subsequently, he became the owner of The Times and The Sunday Times, and ultimately his organisation merged with Reuters to become one of Canada’s largest corporations. All this, and a peerage too, after 60.
I was moved to comment on mature entrepreneurs by a recent study from Standard Life, working with think-tank Reform. It revealed that one in 16 of those aged 46 to 65 hopes to embark on a new business venture rather than just retire. This would be seven times the number of start-ups from their parents’ generation – and could amount to a million new businesses. Their experience and wisdom will be their secret weapon. Ageing baby boomers – and I’m one – realise that, thanks to collapsing pension provision and rising longevity, many of us will have to work until we are well past 60. I am inspired by the example of my dad, still hugely productive at 80 – with two books due to be published in the next year, on top of the 50 he has already written. Interesting work brings a feeling of purpose at any age.
Not every venture started by a “silver entrepreneur” need be a for-profit undertaking. It might be a charity, a social enterprise, a civic endeavour, a new neighbourhood organisation or a recreational club. We do not, after all, face a shortage of opportunities – across industry, politics or in communities. There are endless activities that could be done more efficiently, or problems to be solved. And while capital might be in short supply, human ingenuity and energy are an infinite resource.
It was depressing to watch last week’s Channel 4 “Dispatches” documentary about ageism in the workplace. Clearly, companies must try harder to work with those over retirement age. But the veteran generation can take its revenge by going freelance and doing well in the self-employed world. Or they can volunteer, or mentor younger people. It is a tremendous way to keep in touch with other generations, and to contribute knowledge.
I occasionally teach a case study at London Business School, or give talks to groups of students. I find it hugely invigorating to interact with ambitious twenty-somethings, keen to learn and with a different perspective on work and life.
America has impressive initiatives such as encore.org, a campaign to encourage citizens to have a second career in later life. They award a Purpose Prize to those aged over 60 who are taking on society’s biggest challenges. It is based on the recognition that, for most, a dream of golden years of endless leisure is neither fulfilling nor practical. Moreover, millions of retirees doing nothing is a vast waste of human talent. Again, my mum reinvented herself as a counsellor after she was 60, giving her a genuine sense of renewal.
I plan to persuade the Royal Society of Arts in London, where I am chairman-elect, to seize this cause and work with its Fellowship to support a new breed of “olderpreneurs” to take the plunge. And the UK government should help with tax breaks and exemptions from regulations.
lukej@riskcapitalpartners.co.uk The writer is chairman of Channel 4 and runs Risk Capital Partners, a private equity firm.
