FACULTY of business,

economics AND ACCOUNTING

BM6063 ENTREPRENEURSHIP
INDIVIDUAL SEMESTER REPORT:

DO THE AGE OF
ENTREPRENEUR AFFECTS THEIR
ENTREPRENEURIAL ACTIVITY
IN LATER LIFE
Prepared By:

SHATESH KUMAR CHANDRAHASAN

MB1412216T

ABSTRACT

Entrepreneurship delivers many benefits whether people consider

themselves in the post retirement phase of their careers or not.
Entrepreneurship is flexible, allowing individuals to design their ventures
to suit their needs, whether limiting work hours, working alone or with
partners, concentrating on long or short term goals. For entrepreneur who
prefers traditional employment, entrepreneurship becomes a choice when
they encounter age discrimination, face an unwanted prospect of
relocation, or find the available options unattractive because of limited
entrepreneurial activity.

The

ageing

of

the

population

in

advanced

economies

has

increasingly attracted studious and policy attentiveness. It has been

argued that entrepreneurship can be used to prolong the working lives of
older people and to provide them with financial support in retirement.
Contemporary studies have neglected the effect of barriers on their
entrepreneurial activity in early stages as well as later life. This report
seeks to build upon the limited, recent qualitative entrepreneur literature,
and uses detailed data to provide new insights into the barriers facing
entrepreneurs, and how they have been overcome. In particular, this
report explores the diversity of barriers faced by the entrepreneur based
on their previous employment backgrounds.

TABLE OF CONTENTS

NO
01.
02.
03.
04.
05.
06.

CONTENTS
Background of the Issue
Literature Supporting Issue
Literature Not Supporting Issue
Discussion
Conclusion
Bibliography

PAGE
1-5
6 - 15
16 - 20
21 - 23
24 - 25
26 - 29

BACKGROUND OF THE ISSUE

DO THE AGE OF AN ENTREPRENEUR AFFECTS THEIR

ENTREPERENEURIAL ACTIVITY IN LATER LIFE

Age and demographics are undeniably important determinants of

entrepreneurship

that

have

largely

been

left

unexplored

in

entrepreneurship context. On the contrary, age has been treated as a

factor exogenous to the utility function of the decision maker and is

usually introduced indirectly in analytical models either as a cost or as a
variable in the joint utility function of a household.

However, founder age as a stand-alone factor does not provide

sufficient

evidence

to

determine

the

competency,

entrepreneurial

propensity and growth potential of a venture or of entrepreneurial activity.

On the contrary, entrepreneurial activity does not occur within a vacuum,
it is deeply embedded within a cultural and social context, amid a web of
human networks that are both social and economic.

By attributing entrepreneurial success to age, it sets a dangerous

precedent

within

environments

that

are

seeing

promising

entrepreneurial culture. This is particularly true of youth entrepreneurship.

It demands for distinction between promoting entrepreneurial education
to increase the skills and propensity for future entrepreneurial activity
among youth, and giving the wrong message that entrepreneurship
provides more opportunities than education and experiential learning.
The impact of entrepreneurial activity on employment and economic
growth is not linear and varies significantly depending on the indicators
used to proxy the entrepreneurial activities. Notwithstanding, it is widely
held by policymakers and academics alike that entrepreneurship has
played an important role in much of recent economic growth and even
social development throughout much os the world.

This belief has resulted in the chorus for increasing entrepreneurial

activity as a way to stimulate economic activities and realize growth. The
increasing emphasis on entrepreneurship as a panacea for economic
growth, especially as growth through traditional avenues has stagnated, is
evident in the increasing support for teaching entrepreneurship in
established universities around the world.

Entrepreneurship is positively related to economic growth, has

contributed to the proliferation of a plethora of public policy initiatives
with the conviction that through these public policies, countries can
stimulate their entrepreneurial and innovative capacity and, in this way,
and

achieves

higher

levels

of

economic

growth.

However,

since

entrepreneurial activity vary with economic development, national policies

should to be tailored to be consistent with the need, based on the
particular context of each country.

The formal and informal institutional structures have been shown to

have significant impact on entrepreneurship activity. This further adds
credence to the need for policies based on the local realities as we strive
to create an entrepreneurial economy. Project conducted has given
countries the opportunity to analyze actual entrepreneurial activities,
which are the attitudes and perception about entrepreneurship as well as
the entrepreneurial Aspirations and the framework conditions that impact
entrepreneurship activity.

The analysis creates a more complete view of the entrepreneurial

ecosystem that prevails in a country. The project can help policy makers to
develop more relevant and effective public policies and programmes to
increase the level of the kind of entrepreneurial activities that will
contribute to economic growth and societal well-being while improving the
perception and attitudes about entrepreneurship in the society.

Entrepreneurial Education
Successful initiatives have shown that the supply of entrepreneurs
can be increased by developing a positive perception about the
feasibility and desirability of entrepreneurship through education,
particularly when delivered from a young age. Entrepreneurial
education is not solely focused at raising awareness, but at
providing business, financial and social skills that are transferable
through the work place. In addition, amidst the are entrepreneurs
born are made debate, entrepreneurial education can develop the
psychological attributes associated with entrepreneurship.

Knowledge is the Root of All Opportunities

Opportunity-recognition, key to the entrepreneurial function, is
based on the ability to stock and decode various types of
information. Knowledge thus becomes the most important economic

resource. Once said that the economic problem was not due to
resource allocation, but rather, the dispersion of knowledge and
utilization of information.

Knowledge

is

most

commonly

gained

with

experience

and

individuals who have access to specific types of existing knowledge

have a higher likelihood of recognizing opportunities. Startups in
knowledge-intensive industries generally have highly qualified
human capital, meaning that the founder is more likely to be older,
although when it comes down to startup founding rates, these
dominate non-knowledge intensive industries.

Personality, Perception and Credibility

Although most tend to agree that personality and behavioral traits
only tell part of the story when it comes to entrepreneurship, these
are attributes that deeply impact on age and propensity to
enterprise. Personality is important and dictates behavior and
interaction within a social environment, however, perception is just
as important. Alertness, tolerance of uncertainty, risk-taking and
knowledge are all factors that are intrinsic to the individual and that
are difficult to change through national policies, even though they
can shift with time and experience.

On the other hand, whilst experience may not be on the side of

young entrepreneurs, certain characteristics such as the ability to

intake knowledge, adaptability, flexibility and a great deal of

creativity have been attributed to younger founder rates. The most
important factor recognized in the entrepreneurial anatomy, is
perceived self-efficacy. Perception of ones own ability to manage
uncertainty, anticipate risks and set goals, and generally this
attributed to individuals who see past experiences not as failures,
but as a learning curve.

Lastly, another important factor is credibility. The choice to launch a

startup has to be credible to the entrepreneur through the
realization of his own potential but also, to the social context in
which the entrepreneur will operate.

Social Networks
Age is one of the strongest influences on the composition of a social
network. In turn, access to network is one of the strongest
determinants to venture growth. This implies that the probability of
starting a business will increase with age, perhaps explaining why
there

has

been

boom

in

aging

entrepreneurship.

As

entrepreneurship is a regional event, access to network facilitates

the gathering of knowledge and access to resources needed by the
founder. However, there has been a major trend that goes against
this popular perception, the social media era.

LITERATURE SUPPORTING ISSUE

Benjamin Franklin once neatly summed up two crucial points in the

evolution of an individuals abilities and skills along his or her (work)
lifecycle, cleverly making the distinction between physical work, which is
better performed by the young and more theoretical work, which is better
practiced by the more mature. Even though this separation is a bit
simplistic, it is good starting point for a more detailed analysis.

There is three age group of entrepreneur can be identified in the

entrepreneurial activity. We call the entrepreneurs in the first age group
(between 20-29 years of age), adolescent entrepreneurs and the ones in
the middle groups (30-39 and 40-49) second-career entrepreneurs and
meanwhile the third-age entrepreneurs are in the age group between 50
to 64 years or older.

The adolescent or late-second-career-entrepreneurs are who will

most successfully (and willingly) embark upon a high-tech startup. The
lifecycle-driven approach indicates that one source of entrepreneurs is
young individuals who have just finished their education and are eager to
put their knowledge to a real-world test.

They are energetic and probably quite able to cope with a heavy
workload as they are in good physical condition and not yet constrained
by the demands of a family. Further, their lack of experience can actually

be advantage as they have not yet developed fossilized mindset about

what is possible and are thus open to new ideas and able to creatively
exploit an opportunity.
However, lack of experience can also be a disadvantage, a dearth of
know regarding a market or industry can lead to costly mistakes or
unprofitable use of time and energy plus sometimes, it is very useful to
know exactly what is impossible. Moreover, accumulated know-who can
be a very effective ice-breaker.

Being socially embedded can facilitate raising venture capital and

generally provides useful information, thus overcoming market entry
barriers that can arise, for instance, from insufficient financing or
seemingly insurmountable bureaucratic barriers.

Know-who can be accumulated, but only with time, so in this case,

their youth disadvantages adolescent entrepreneurs. Conversely, as it is
likely that adolescent entrepreneurs are still at university or at least
closely connected with one, this environment could compensate for the
lack of personal contacts, at least in part.

Regarding second-career entrepreneurs, the findings are twofold.

The younger group or early second careers entrepreneurs, those between
30-39 years of age, are just settling down in life, starting their own
families, purchasing real estate, in other words, they have a lot to lose by
taking a risk such as starting their own business.

The older group, or late second-career entrepreneurs, those

between 40-49 years of age, are more likely to have already traveled that
path, are more settled and secure in their lives. They have already raised
their children, own a house, and have at least some financial backing and
can afford to spend some time and money on doing what they want,
instead of concentrating on what the family needs.

Generously, people become entrepreneurs because they either have to

or they want to. If it be generalized, then the have-to-be entrepreneurs
represent about two-thirds of later-life entrepreneurs, while the want-tobe entrepreneurs represent about one third. It would seem that the
following are among the motivators for the have-to-be entrepreneur:

Economic Conditions
A weak overall economy or an economy that is weak in only one
sector may drastically limit employment opportunities. As an
example, a pilot laid off from an airline may have trouble replacing
his or her job if the airline industry is suffering a general slowdown.
One option for the pilot is to begin an entrepreneurial venture within
the airline industry, such as starting an air-taxi service, or entering
into another industry entirely.

Discrimination

Sometimes studied under rubric of the theory of the disadvantaged

worker in the academic literature, discrimination holds that
individuals who face prejudice often turn to be entrepreneur. An
immigrant who may have been an executive in a bank in his home
country may find himself offered only entry-level positions at banks
in the U.S. May immigrants respond to this lack of adequate
employment opportunity by using their education, prior experience,
and fluency in languages as tools to start or purchase a business.

Lack of Resources
It is perhaps ironic that a lack of personal resources such as
education, money, credit and an established business network may
actually represent a starting point for many entrepreneurs. The
academic literature refers to this challenge as the theory of
liquidity constraint and posits that individuals with a lower stock of
such personal resources are generally more constrained in their
employment options than in their entrepreneurial options.

The following are the main motivators for the want-to-be entrepreneur.

Following the dream

Many people harbor dreams to be involved in work that is removed
from their main careers. They may yearn to be musician, a stamp
collector, an owner of a bed and breakfast or someone, who starts a

non-profit venture. Others may have a specific dream related to the

industry in which they worked for many years.

Managing family and time constraints

Many people who start their own businesses while still employed
must face the initial time restrictions imposed by existing full-time
employment. But, entrepreneurs without full-time jobs also have
family responsibilities, such as childcare or eldercare, which might
make starting s flexible-time, home-based business a better option
than a full time job away from home.

Having a limited role

Many entrepreneurs structure their ventures so they have limited
roles in the business, including time involved, management
responsibilities and even financial risk. By casting themselves in the
role of dealmakers, entrepreneurs recruit others to participate in
their ventures with minimal personal risk and commitment. For
example, one might purchase a business with management in place
that can be operated from a distance. An extension of this is angel
investing, in which an entrepreneur invests in a business and takes
an active but limited role in its management.

Having Flexibility over time

A venture can be designed so that the involvement of the
entrepreneur can vary over time. An antique dealer can start with a

part-time commitment, but can become full time when he or she

retires from a full time job.

Building equity value

Unlike regular employment, entrepreneurial ventures can create
business value that can benefit the owner. If successful, a business
can be sold when the entrepreneur wants to retire or begin a new
venture, creating a potentially significant lump-sum payment.

Being the Boss

Being your own boss is one of the most highly valued characteristics
of entrepreneurship. After long careers during which they have
developed clear ideas of how businesses should be run, or working
for bosses whose management decisions and styles may be
frustrating and negative, entrepreneurs are highly attracted to
situations in which they have the authority to make all the decisions.
Dissatisfaction with previous work becomes main motivator for latelife entrepreneurship, along with the enjoyment and satisfaction of
being ones own boss.

Accomplishing a Social Good

The most attractive aspects of entrepreneurship are the ability to
accomplish a desired political or social purpose. This seems to be
especially true for members of certain minority groups who believe
that entrepreneurship reflects positively on their ethnic group and
creates employment and other economic benefits within their

communities. By starting a business with both an economic and

social purpose, such as a school or health care company, or a nonprofit organization that provides social services to members of a
specific community, an entrepreneur can achieve these larger goals.

In fact, they have been settled long enough that perhaps they now
crave a little adventure, and they are financially secure enough to be able
to engage in one without serious risk to their own well-being. They are
also still young enough that they have the luxury of time on their side,
that is, they can ride out the time it will take for their venture to start
producing income without suffering either hardship or declining health.

In regard to their human capital, their human capital, their stock of

codified

knowledge

has

not

depreciated

very

much

yet

and

is

complemented by a solid stock of know-how and know-who. They can thus

evaluate the market in an informed manner, recognize an opportunity for
what it is and exploit same effectively due to prior experience in the real
world of work. In short, they are the age group in the best condition and
stage of life to realize a profit from their human capital investment. They
are in a prime position to become entrepreneurs.

One of the most important is that an aging population necessitates

a stronger focus on the second peak of entrepreneurship, that involving
the late second-career entrepreneurs and on developing strategies that

will expand the age range of this group so that it encompasses third-age
entrepreneurs.

For example, an entrepreneur with great knowledge of an industry,

a wealth of contacts and large personal financial resources may be able to
start

sizeable venture. On

the other

hand, an aspiring older

entrepreneur may have little financial or social capital and perhaps

disabilities along with the declining energy brought by age.

Even for someone with physical constraints, there are many

entrepreneurial strategies that fit, such as establishing a home-based
business, being part of direct-selling network, or partnering with other
entrepreneurs who have greater access to desired resources. To be
effective, tools for later-life entrepreneurs should not only match an
entrepreneur to a business strategy but must easy to apply, be sensible
and have clear conclusions. The thinking that underlies the tools can
become integrated into the entrepreneurs ongoing strategic decisions.

Demographic trends are unequivocal in showing that the 40-50

years old group is expanding in size whereas the following groups are
comparatively small. It Thus seems quite clear that if we want a
continuing base of entrepreneurship, which is so essential to a thriving
economy, we will have to find a way to keep its spirit alive and flourishing
in ever older people.

Increasing life expectancy and corresponding effects on time

discounting, as well as the growing necessity for people to work more
years of their lives, are developments that will aid in this effort. However,
the enduring, although incorrect, belief that the pay as you go pension
systems are still viable, along with welfare states that promote early
retirement, are forces in the opposite direction, and in fact can be actively
detrimental to the spirit of entrepreneurship as people with guaranteed
retirement will not have much interest in learning new skills or keeping
their old skills up to date.

Overcoming this problem will involve attacking two fronts at the

same time, a change in individual mindsets and a change in public
institutions, both aimed at increasing the importance of and interest in
individual self-reliance and lifelong learning. One possible strategy is to
extend the length of labor participation individuals must engage in before
being eligible for state benefits.

In the best of all possible worlds, such a policy might eventually lead
to intergenerational cooperation, where young and old entrepreneurs join
forces and complements each other, marrying the vigor and openness of
youth with the experience and judgements of maturity.

Until recent years, technology has made business ownership more

accessible. The first steps in opening a new business were renting an
office

and

hiring

staff.

Working

from

home

was

regarded

as

unprofessional

and

low-status. Computers,

cell

phones, telephone-

answering systems, word processing software and the Internet have made
small

business

start-up and operation

easier, cheaper and more

professional-looking to clients.

Besides that, the Internet has leveled the playing field for all types
business. Websites make it easier for small firms to seem big and service
customers anywhere in the world. Companies such as eBay and
Amazon.com that provide the structure for individuals and small
companies to reach their markets significantly lower barriers to small
business operation.

Later-life entrepreneurs have skills, experience and education that

represent valuable commodities. Outsourcing, once considered a bad
word, is now recognized as an efficient way to do business and later-life
entrepreneurs are well-positioned to excel in this work because they
represent highly-skilled workers who have already created a structure for
work other than full-time employment.

As evidence points to longer and healthier lives, shrinking pensions

and continued personal ambitions, later-life entrepreneurship becomes a
more attractive option. All these forces combine to explain why later-life
entrepreneurship is significant element of economic vitality for older
person and very likely grow as the need for income and benefits among
this population increase.

But, later-life entrepreneurs have to be especially sensible of the

need to avoid excessive risk that can cause them irreparable financial
damage. Tools must be developed to help later-life entrepreneurs
accomplish their specific goals.

LITERATURE NOT SUPPORTING THE ISSUE

Later-life

entrepreneurs

need

approaches

that

match

their

entrepreneurial ventures to their risk tolerance and time horizons.

Because the profiles of each entrepreneur are so different, the resources
they bring to bear on their prospective ventures, each entrepreneur must
be evaluated uniquely.

Although entrepreneurs cannot be characterized as people who are

attracted to risk and enjoy taking it, there is no denying that many forms
of entrepreneurial activity entail risk in several ways, especially for older
entrepreneurs.
entrepreneurs

Many
have

ventures
less

time

involve

financial

remaining

in

their

risk

and

older

employment

or

entrepreneurial careers to recover from losses.

The relationship between time and business is significant. Strategies

take time to execute. Mistakes take time to fix. Many successful
entrepreneurs only experience a great success after spending time on
previous failures. Older entrepreneurs do not have the years to execute
time-consuming strategies and they do not have the ability to withstand
large risks, which limits the options for the type of entrepreneurial activity
they may choose.

Young entrepreneurs with many years of work ahead of them can

risk their savings and even their homes and still bounce back if their
venture fails. Older entrepreneur who may have retired from traditional
employment will have few opportunities to rebuild their savings, equity in
their homes, or even find comparable employment if their venture fails.

There is also Career Risk, meaning that taking oneself out of the
employment pool for a significant period of time to pursue entrepreneurial
ambitions

that

may

fail

could

leave

the

would-be

entrepreneur

disadvantaged should he or she choose to return to the workforce.

Although there is no specific research on this subject, it seems likely

that such a gap from traditional employment could have greater negative
effects on older populations. It seems reasonable to believe that a midlevel or high-level employee over the age of 50 will have trouble
duplicating his or her employment after leaving to engage in the
entrepreneurial activities that end in failure.

Every person has certain innate biological characteristics, such as

sex, race or health that initially determine the individuals expected life
time and intelligence. With these characteristics as the foundation,
socialization, education, on-the job training, and medical care, along with
cultural education in literature, music and the arts, all contribute to the
individuals stock of human capital.

This stock of human capital, along with the basics he or she was
born with, influence an individuals marginal productivity, health and soft
skills

(i.e.

personal

qualities

like

responsibility,

integrity

or

self-

management as well as interpersonal qualities like being a team player or

a leader) over the lifetime.

According to the economic literature on entrepreneurship, a rational

individual would choose to start his or her own business if the expected
entrepreneurial income equals at least the wage earned in dependent
employment. If this is true, it means that an individuals decision whether

to become an entrepreneur or take the waged-income road is determined

by several factors, among them being the persons basic physical
characteristics and the stock of human capital, which will influence the
type of work a person is suited for and whether he or she could become
an entrepreneur or not. However, the final decision to start a business
eventually depends on an individuals risk aversion and time discounting.

Along a persons lifecycle, the stock of human capital determines his

or her productivity and appropriateness for certain employment, i.e.,
dependent or independent, a persons stock of human capital also
changes with age, which means the person will be better suited for
different types of employment at different intervals of the lifecycle.

On the other hand, adolescents are fairly unbiased (at least on

certain subjects), which can help release creative energy. They are
energetic and at their peak of physical power. Additionally, the ability to
store and process information, solve problems, deal with complexity and
adjust to new situations is also highest at this time of life.

Moreover, they lack life experience and have not yet had time to
develop strong social and business networks. The so-called implicit
knowledge accumulated over a lifetime peaks when a person is in his or
her 50s and does not differ across groups until 80s. Hence, these factors
take time to accumulate, evolving over a lifetime from participating in
work life, social interaction and learning by doing.

Besides that, there is evidence that an individuals ability to process

fresh knowledge, reason logically and be creative decreases with age.
Creativity, in particular, can decrease due to mindsets that have become
solidified, perhaps even fossilized, from past experience. Thus, some
abilities and skills increase over a persons lifecycle while others decrease.

Given a stock of human capital, a theoretical model introduced that

focuses on an individuals risk aversion and time discounting over the
lifetime where the propensity to become an entrepreneur is decreases
with age. They argue that the opportunity cost of time increases with age
as every individual lives only a certain length of time.

If time is a limiting resource, an individuals time discount rate

attached to future income will increase over period and, as a result,
activities

requiring

time

commitment

before

becoming

income

producing, such as a new firm, are penalized with respect to activities with
immediate payoffs such as waged labor.

In a closely related empirical study found that risk aversion

decreases with age whereas time discounting increases. On the other
hand, older people are more settled and hence can take more risk.
However in another side, some people are more cautious and take less
risk. This inverse relationship suggests that there is an optimal period in
an individuals life when both risk aversion and time discounting are of

only moderate influence. Along with a proper stock of Human Capital, this
period could be the Golden Age of entrepreneurship.

Finally, potential negative effects on the family might be greater for

older entrepreneurs who have relatives who are dependent on them for
financial support. People over the age of 50 are responsible for other
family members including spouses, parents and children. Making a
decision to cut oneself off from a relatively predictable income stream that
traditional employment may represent and begin a risky new venture also
puts at risk those family members who rely indirectly on that income
stream.

DISCUSSION

We expect that age will be an especially important factor in the

decision to engage in a high startup. These startups are typically
characterized by high knowledge and physical capital intensity, by a high
degree of uncertainty (as to the success and economic value of the
innovation) and a longer time horizon as compared to other businesses.

Thus, being an entrepreneur in this particular field requires a special

profile, extraordinary creativity or the vast experience necessary to come
up with a promising idea, having access to venture and finally having a
rather long time horizon. All this adds up to further support the idea of a
golden age of entrepreneurship, a time of life when an individuals human
capital stock, degree of risk aversion and extent of time discounting
support such an occupational choice.

Whether people are have-to-be entrepreneurs or want-to-be

entrepreneurs, people in later life have the ability to participate and
benefit

from

business

ownership

in

its

many

forms.

Later-life

entrepreneurs often have the funds necessary to start a venture or

purchase one, the credit with the banks to borrow money and the network
of friends, family and colleagues to support an entrepreneurial venture.

At the same time, they also have the knowledge gleaned from
formal education, work and life experience, and skills that are critical in
supporting a successful venture. The personal and professional networks

they have built can form the basis of contacts that can lead to clients,
customers and colleagues.

On the other hand, experience and stock of tacit knowledge, both

useful in starting a high tech firm, increases with age. Mindsets and
routines that become established with age and leave little room for
recognizing entrepreneurial opportunity or being creative may negatively
affect an individuals decision to start a high-tech business. Further, high
tech startups usually takes more time to become profitable than do other
types of startups.

This implies that an individuals age-dependent time discount rate

should have an impact on innovative entrepreneurship as it increases with
age due to a shrinking time horizon, that is, increasing age leads to a
preference for shorter-term profits. In contrast, risk aversion usually
decreases with age as the individual becomes more settled and secure in
life.

Risk aversion is generally highest at that point in life when the

individual is just beginning to settle down and start his or her own family,
usually around 30-40 years of age. It also leads to regard an individuals
age as a proxy for his or her human capital stock, risk aversion and time
discount rate, all important drivers of the decision concerning whether to
become an entrepreneur.

Projecting individual-level theoretical considerations to the regional

level leads to simple conclusion, if an individuals decision to start a
business is determined by age or human capital at a certain age, regional
startup dynamics depend on the regional age distribution or regional stock
of human capital.

In this contribution, we start at the individual level with the

assumption that age is a valid proxy for an individuals human capital
stock, risk aversion, and time discount rate, which all factor into an
individuals decision to become an entrepreneur. Based on this, we
assume at regional level that the number of entrepreneurs is determined
by the regional age distribution, which, as mentioned, is proxy for
prevailing stock of human capital in the region.

Businesses can be defined as the sum of their human, financial and

organizational resources. This set of resources becomes the means by
which organizations develop the capacities to accomplish their goals, from
building products to creating films. The greater an organizations
resources and capabilities are, the more an organization can develop and
implement a strategy to achieve its goals.

Good definition of entrepreneurs is those individuals who undertake

ventures which require resources beyond their own control. This is
certainly true for entrepreneurs regardless of the size of their ventures.
Businesses require collaborative resources such as financing, customers,

raw material, employees, partners and space. Looking at entrepreneurship

through this lens makes the process of obtaining and managing these
resources the key element of success. It also makes the bundle of
resources that entrepreneurs have or can obtain from others a key
determinant of their success.

CONCLUSION

Individuals age affects entrepreneurial intention both directly and

indirectly. Individuals age is negatively related to entrepreneurial
intention, having thus younger individuals showing higher intention that
the

older

counterpart.

Both

perceived

desirability

and

feasibility

significantly and negatively mediate the relationship between individuals

age and their intention to be entrepreneurs.

That is, younger individuals have higher perceptions of desirability

and feasibility towards become entrepreneurs. Nevertheless, age seems
to have stronger influence in perceived desirability than feasibility. This
may be because the younger individuals may feel a lack in skills and
perceived credibility towards become entrepreneurs. Finally, individuals
age negatively moderates the relationship between perceived desirability
and entrepreneurial intention.

At the microeconomic level, individuals age is an important

determinant of an individuals intention to become an entrepreneur. Thus

both the direct and indirect relationship must be taken into account. At the
macroeconomics level, it contributed to current understanding of the
relationship between individuals characteristics and entrepreneurial
perception and aggregate entrepreneurial activity.

As a result, not only the age distribution of a population may be an

important issue for the rate of potential entrepreneurs, but also how such
age distribution interact with individuals perception of desirability and
feasibility towards entrepreneurship. Understanding such dynamics helps
tailoring programs and strategizing on policy tools. Programs should
indeed be implemented in order to raise perceived desirability and
feasibility in older individuals, especially in those regions that witness
older than average populations.

Lastly, human capital related to many intellectual processes

increases with age even while physical energy generally declines. Since
many strategies readily exist for supplementing the physical energy of the
entrepreneur him or herself, it probably should be concluded that the
advantage here goes to the older entrepreneur. In fact, it seems that older
entrepreneurs generally have the advantage over younger entrepreneurs
since three of the four types of the resources required probably exist in
greater quantities with the later-life entrepreneur.

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