2024 Boomer Entrepreneurs Report
Whether you’re 18 or 65, owning a business is challenging, with no guaranteed path to success. While many factors contribute to a business’s chance of survival, the obstacles and opportunities you face shift as you get older. Age may be an asset to older business owners seeking funding but can hinder navigating day-to-day responsibilities.
Our 2024 Boomer Entrepreneurs Report utilizes five metrics to look at how business owners 55 and older fare in each state, with them thriving in Connecticut but struggling in Idaho. Here’s a full look.
Key findings
- More than half of U.S. businesses are owned by people 55 and older. According to the U.S. Census Bureau 2022 Annual Business Survey, 52.3% of business owners are 55 or older — 29.5% are 55 to 64 and 22.8% are 65 and older.
- Connecticut tops our 2024 Boomer Entrepreneurs Report. The Constitution State finishes no lower than 16th across our five metrics, highlighted by the fourth-highest share of businesses owned by Americans 55 and older. Additionally, the state is among the top 10 for its rate of businesses saying their current performance is at least above average, while business owners feel similarly optimistic about their future performance.
- Wyoming and the District of Columbia follow. The Equality State dominates our rankings with four top-five finishes, including the second-highest future performance expectations and the third-highest growth in businesses owned by older adults. That growth will be key in the future, as the state finishes 45th for its share of businesses owned by older adults. Meanwhile, D.C. finishes first in three of five metrics but places poorly in the others, preventing it from ranking higher.
- Idaho finishes as the worst state for boomer entrepreneurs. It has the second-lowest share of businesses owned by people 55 and older and the third-lowest growth on this front. It secured the last spot even though it has the third-highest percentage of the 55-and-older working population that’s self-employed.
- Two of the biggest states — California and New York — join Idaho in the bottom three. Recent headlines — “How California ended up with the worst business climate in America” and “High taxes are bleeding New York’s people and businesses into oblivion” — help explain where they landed in our report. Both states have bottom-10 rankings in three of our five metrics.
5 metrics
Our 2024 Boomer Entrepreneurs Report equally measures the following metrics:
- Percentage of U.S. businesses owned by residents 55 and older
- Percentage change in the number of U.S. businesses owned by residents 55 and older
- Percentage of 55-and-older working population that’s self-employed
- Percentage of U.S. businesses that rate their current business performance as above average or excellent (not age-specific)
- Percentage of U.S. businesses that expect their performance six months from now will be above average or excellent (not age-specific)
See the methodology for the sources.
More than half of U.S. businesses owned by people 55 and older
Our 2024 Boomer Entrepreneurs Report shows that individuals 55 and older own 52.3% of America’s businesses despite — according to SCORE — making up 21% of the population. When zeroing in on older business owners, our analysis shows that 29.5% of U.S. companies are owned by individuals 55 to 64, while 22.8% are owned by those 65 and older.
Even though the 55-to-64-year-old age group makes up the largest share of business owners, individuals 45 to 54 also make up a sizable 25.0% portion. Only 5.0% of businesses have owners who are 25 to 34, and 0.3% have owners younger than 25.
Percentage of U.S. business owners by age range
| Age range | Percentage |
|---|---|
| Younger than 25 | 0.3% |
| 25 to 34 | 5.0% |
| 35 to 44 | 17.4% |
| 45 to 54 | 25.0% |
| 55 to 64 | 29.5% |
| 65 and older | 22.8% |
Source: U.S. Census Bureau 2022 Annual Business Survey.
The rise of encore entrepreneurs
According to a Federal Reserve Bank of Minneapolis review of U.S. Census Bureau data, 14% of self-employed individuals are 67 or older. Ten years ago, that share was 9%.
This increase in “encore entrepreneurs” — those 55 and older — is partly due to adults launching businesses later in life out of necessity or for other reasons. Another factor is that as baby boomers age, many existing business owners are holding onto their companies past the so-called retirement age.
“Older Americans are likely to earn more and have more in savings than younger generations, meaning they might have more funds to invest in starting a small business,” says Matt Schulz, LendingTree chief credit analyst. “Additionally, older individuals tend to have better credit, giving them easier access to various sources of funding. This is especially true for those 55 to 64.”
Connecticut tops our 2024 Boomer Entrepreneurs Report
Connecticut earns first in our study, finishing 16th or higher in our five metrics. The New England state has the fourth-highest share of business owners 55 and older (58.9%), a 34.4% increase from 2020 to 2021.
Connecticut’s business owners have a positive outlook on their current and future performance. In fact, 34.5% describe their current business performance as above average or excellent, while 33.0% expect their future performance to be above average or excellent, the ninth- and 10th-highest rates in our study, respectively.
Connecticut, at a glance
| Metric | Ranking |
|---|---|
| % of businesses owned by 55-and-older residents | 4 |
| % change in businesses owned by 55-and-older residents | 16 |
| % of 55-and-older working population that’s self-employed | 11 |
| % of businesses that rate current business performance highly | 9 |
| % of businesses that rate future business performance highly | 10 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the Business Trends and Outlook Survey (BTOS), fielded from April 22 to May 5, 2024.
Like other states, Connecticut experienced a boom in new businesses in response to the pandemic. Between 2010 and 2020, the state’s business registrations typically increased by 5% annually, according to Connecticut by the Numbers. However, in 2021, they jumped by over 20%. Connecticut has the country’s fourth-largest share of employed adults 55 and older.
Coinciding with the surge in business registrations, the Constitution State has taken steps to improve its business culture. Connecticut has transformed from a state known for its poor business climate and high taxes to a destination for companies and entrepreneurs — according to a Hartford Courant commentary written by business leaders and academics — thanks partly to initiatives such as AdvanceCT, the state’s business attraction and retention engine.
Wyoming, District of Columbia finish 2nd, 3rd
Wyoming places second in our 2024 Boomer Entrepreneurs Report, finishing fifth or better in four metrics. More than a third (35.2%) of Wyoming business owners say their performance is above average or excellent, the fifth-highest rate in our study. An even greater share of business owners — 36.8% — expect their future business performance to be above average or excellent, the second-highest.
Wyoming also had a 78.6% increase in business owners 55 and older between 2020 and 2021 — the third-highest growth rate. The self-employment rate among 55-and-older individuals — 10.9% — is the fourth-highest across our research. While Wyoming ranks high in most metrics, it places near the bottom for its rate of businesses owned by individuals older than 55 — 49.1% — the seventh-lowest.
The Equality State leads the country in terms of its percentage of self-employed people. According to a Wyoming News Exchange analysis of U.S. Bureau of Economic Analysis (BEA) data, more than a third of Wyoming’s full- and part-time jobs in 2022 were self-employed. The state’s real estate and rental and leasing industry, according to the same analysis, has the highest share of self-employed jobs (87.6%), followed by finance and insurance (77.8%) and farm (73.2%).
Wyoming, at a glance
| Metric | Ranking |
|---|---|
| % of businesses owned by 55-and-older residents | 45 |
| % change in businesses owned by 55-and-older residents | 3 |
| % of 55-and-older working population that’s self-employed | 4 |
| % of businesses that rate current business performance highly | 5 |
| % of businesses that rate future business performance highly | 2 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the BTOS, fielded from April 22 to May 5, 2024.
The District of Columbia finishes third in our study, placing first in three metrics. From 2020 to 2021, it had the highest growth rate of businesses owned by individuals 55 and older, nearly doubling (98.8%). The District of Columbia’s business owners also have a favorable outlook on their current and future performance, ranking first in both metrics.
Despite the strong showings in three metrics, the nation’s capital has mediocre rankings in the other two, bringing its overall score down. The District of Columbia lands in 32nd for its percentage of businesses owned by individuals 55 and older (51.9%), and only 8.1% of working individuals 55 and older are self-employed — 25th in our study.
The District of Columbia’s small businesses comprise 98.2% of its companies, according to the U.S. Small Business Administration (SBA). The lower business ownership rate among those 55 and older could be related to its younger population relative to the country’s. The District of Columbia’s median age is 34.9, according to the Census Bureau, far lower than the national median of 39.0. D.C. is taking steps to become more age-friendly.
District of Columbia, at a glance
| Metric | Ranking |
|---|---|
| % of businesses owned by 55-and-older residents | 32 |
| % change in businesses owned by 55-and-older residents | 1 |
| % of 55-and-older working population that’s self-employed | 25 |
| % of businesses that rate current business performance highly | 1 |
| % of businesses that rate future business performance highly | 1 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the BTOS, fielded from April 22 to May 5, 2024.
Idaho finishes as worst state for boomer entrepreneurs
Idaho is last in our study, finishing in the bottom 10 in four of our five metrics. The Western state has the second-lowest percentage of businesses owned by people 55 and older (44.4%) and the third-lowest growth in the number of businesses owned by older individuals between 2020 and 2021 — 18.8%.
The outlook of business owners in the Gem State isn’t positive. Only 26.9% categorize their business performance as above average or excellent (10th-lowest). Even fewer business owners expect their business performance to be above average or excellent in the future — 25.6%, the sixth-lowest. Idaho shines in one metric — the state has the third-highest self-employment rate among older working individuals, at 11.1%.
Despite the poor ranking, Idaho’s small businesses make up 99.2% of the state’s total companies, according to the SBA, and small business employees make up 56.3% of total workers. With a median age of 37.5, Idaho’s population is younger than the national population (39.0), likely affecting its low business ownership rate and ownership growth among older individuals.
Idaho, at a glance
| Metric | Ranking |
|---|---|
| % of businesses owned by 55-and-older residents | 50 |
| % change in businesses owned by 55-and-older residents | 49 |
| % of 55-and-older working population that’s self-employed | 3 |
| % of businesses that rate current business performance highly | 42 |
| % of businesses that rate future business performance highly | 46 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the BTOS, fielded from April 22 to May 5, 2024.
Big states, California and New York, join bottom 3
Two of the country’s most populated states land among the bottom three spots in our study. California has the second-worst finish with bottom-10 rankings in three of our study’s five metrics. Only 25.1% of California’s business owners expect their future business performance to be above average or excellent — the fifth-worst in our research. Similarly, 25.2% describe their current performance as above average or excellent, the seventh-lowest.
California had the sixth-lowest growth rate among business owners 55 and older, increasing only 20.5% between 2020 and 2021. Although the Golden State scores low or mediocre in most metrics, it ranks 10th for its self-employment rate among the older working population, at 9.7%.
California’s private sector workforce has only increased by 1.6% over the past four years, according to the California Policy Center. A mass exodus of large and small companies since 2020, elevated taxes and a high cost of doing business have contributed to the state’s poor business climate.
California, at a glance
| Metric | Ranking |
|---|---|
| % of businesses owned by 55-and-older residents | 36 |
| % change in businesses owned by 55-and-older residents | 46 |
| % of 55-and-older working population that’s self-employed | 10 |
| % of businesses that rate current business performance highly | 45 |
| % of businesses that rate future business performance highly | 47 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the BTOS, fielded from April 22 to May 5, 2024.
Close behind California is New York, which also finishes in the bottom 10 in three metrics. Only 25.1% of business owners 55 and older say their current business performance is above average or excellent, the sixth-lowest, while 26.3% expect their future business performance to be above average or excellent, the seventh-lowest.
The Empire State had the seventh-worst growth rate among 55-and-older business owners between 2020 and 2021 — 21.9%. New York has a middle-of-the-pack ranking (29th) in its self-employment rate among older workers — 7.7%. And the state outpaces the national rate of businesses owned by individuals 55 and older — 54.4% versus 52.3%, finishing 17th in this metric.
New York has experienced a net loss of businesses yearly since 1994 due partly to high taxes and state regulations, according to the Heritage Foundation. Despite the poor rankings, California and New York are two of the five most popular states for business owners 50 and up, according to SCORE. The remaining three are Florida, Texas and North Carolina.
New York, at a glance
| Metric | Ranking |
|---|---|
| % of businesses owned by 55-and-older residents | 17 |
| % change in businesses owned by 55-and-older residents | 45 |
| % of 55-and-older working population that’s self-employed | 29 |
| % of businesses that rate current business performance highly | 46 |
| % of businesses that rate future business performance highly | 45 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the BTOS, fielded from April 22 to May 5, 2024.
Full rankings
2024 Boomer Entrepreneurs Report rankings
| Rank | State | % of businesses owned by 55-and-older residents | % change in businesses owned by 55-and-older residents | % of 55-and-older working population that’s self-employed | % of businesses that rate current business performance highly | % of businesses that rate future business performance highly | Index score |
|---|---|---|---|---|---|---|---|
| 1 | Connecticut | 58.9% | 34.4% | 9.4% | 34.5% | 33.0% | 100.0 |
| 2 | Wyoming | 49.1% | 78.6% | 10.9% | 35.2% | 36.8% | 93.6 |
| 3 | District of Columbia | 51.9% | 98.8% | 8.1% | 48.1% | 44.1% | 92.9 |
| 4 | Rhode Island | 60.4% | 38.8% | 7.3% | 35.7% | 32.9% | 88.6 |
| 5 | Montana | 49.6% | 36.9% | 12.4% | 33.1% | 33.0% | 80.0 |
| 6 | New Hampshire | 57.8% | 30.2% | 8.7% | 30.7% | 33.7% | 77.1 |
| 7 | Kansas | 55.3% | 32.7% | 8.6% | 35.8% | 28.9% | 72.9 |
| 8 | Alaska | 47.5% | 53.3% | 9.2% | 34.2% | 32.6% | 71.4 |
| 9 | Delaware | 50.5% | 90.7% | 7.2% | 33.1% | 35.7% | 67.1 |
| 10 | Massachusetts | 55.5% | 19.8% | 8.5% | 33.1% | 33.8% | 65.7 |
| 11 | Missouri | 53.4% | 30.0% | 7.1% | 35.0% | 35.6% | 64.3 |
| 11 | Vermont | 55.6% | 28.9% | 11.9% | 30.2% | 29.8% | 64.3 |
| 13 | Minnesota | 52.7% | 21.9% | 8.7% | 34.4% | 34.3% | 62.9 |
| 14 | Maryland | 56.1% | 35.0% | 7.6% | 29.7% | 30.9% | 59.3 |
| 15 | Maine | 52.2% | 20.3% | 10.2% | 35.2% | 31.0% | 57.9 |
| 15 | Virginia | 53.7% | 39.7% | 7.5% | 30.6% | 31.5% | 57.9 |
| 17 | Iowa | 48.4% | 23.1% | 9.0% | 34.9% | 35.4% | 54.3 |
| 18 | New Mexico | 60.9% | 67.6% | 8.1% | 24.3% | 27.2% | 51.4 |
| 19 | Nebraska | 50.4% | 34.7% | 9.9% | 31.1% | 28.6% | 50.0 |
| 20 | Ohio | 56.2% | 23.7% | 6.3% | 33.0% | 32.7% | 45.0 |
| 21 | Colorado | 47.5% | 23.8% | 10.1% | 32.2% | 32.6% | 44.3 |
| 22 | Utah | 40.2% | 33.9% | 8.4% | 31.9% | 31.3% | 43.6 |
| 23 | South Carolina | 53.5% | 46.3% | 6.5% | 31.0% | 29.7% | 42.1 |
| 23 | Tennessee | 53.4% | 30.9% | 6.9% | 32.4% | 30.7% | 42.1 |
| 25 | Arizona | 51.3% | 30.0% | 7.6% | 31.9% | 31.3% | 41.4 |
| 26 | Wisconsin | 52.1% | 28.9% | 7.7% | 30.5% | 32.2% | 39.3 |
| 27 | Mississippi | 54.0% | 40.0% | 6.9% | 29.9% | 27.8% | 37.9 |
| 28 | North Dakota | 47.3% | 33.9% | 10.9% | 28.4% | 30.0% | 37.1 |
| 28 | South Dakota | 52.1% | 57.4% | 10.7% | 25.1% | 20.4% | 37.1 |
| 30 | Michigan | 54.2% | 28.6% | 6.7% | 32.2% | 30.5% | 35.0 |
| 30 | North Carolina | 51.8% | 34.8% | 7.8% | 28.6% | 29.4% | 35.0 |
| 32 | Kentucky | 51.2% | 26.6% | 6.5% | 39.2% | 30.9% | 33.6 |
| 33 | Hawaii | 58.4% | 34.1% | 8.4% | 17.9% | 19.6% | 32.1 |
| 34 | Louisiana | 55.3% | 25.7% | 7.6% | 28.2% | 30.7% | 31.4 |
| 35 | Florida | 53.1% | 22.7% | 8.8% | 28.6% | 28.0% | 26.4 |
| 36 | Indiana | 52.6% | 18.4% | 7.1% | 31.6% | 32.5% | 25.0 |
| 37 | Arkansas | 49.7% | 15.8% | 6.8% | 33.7% | 33.5% | 23.6 |
| 37 | Oregon | 49.4% | 31.5% | 9.0% | 26.6% | 28.6% | 23.6 |
| 39 | Pennsylvania | 54.6% | 25.9% | 6.3% | 29.8% | 30.3% | 22.9 |
| 40 | Illinois | 53.8% | 28.9% | 7.3% | 28.8% | 27.4% | 20.7 |
| 41 | Alabama | 54.6% | 29.8% | 6.8% | 29.0% | 27.1% | 20.0 |
| 41 | Georgia | 52.5% | 31.7% | 7.9% | 27.8% | 26.6% | 20.0 |
| 41 | West Virginia | 60.9% | 27.6% | 4.4% | 28.6% | 27.6% | 20.0 |
| 44 | Texas | 50.8% | 25.6% | 8.3% | 28.6% | 29.8% | 19.3 |
| 45 | New Jersey | 57.2% | 30.6% | 7.4% | 23.5% | 21.6% | 17.1 |
| 46 | Oklahoma | 54.5% | 26.9% | 8.1% | 25.4% | 23.7% | 15.0 |
| 47 | Nevada | 49.3% | 44.8% | 6.9% | 28.0% | 27.1% | 11.4 |
| 47 | Washington | 50.3% | 33.1% | 8.2% | 25.0% | 26.8% | 11.4 |
| 49 | New York | 54.4% | 21.9% | 7.7% | 25.1% | 26.3% | 5.7 |
| 50 | California | 51.0% | 20.5% | 9.7% | 25.2% | 25.1% | 4.3 |
| 51 | Idaho | 44.4% | 18.8% | 11.1% | 26.9% | 25.6% | 0.0 |
Source: Census Bureau 2022 and 2021 Annual Business Surveys, 2022 American Community Survey (with one-year estimates) microdata and the BTOS, fielded from April 22 to May 5, 2024.
4 business tips for boomer entrepreneurs
Between securing funding, tackling day-to-day responsibilities and navigating the ups and downs of running a business, entrepreneurship is not for the faint of heart — regardless of age. But despite the universal challenges, there’s good news for older entrepreneurs: Businesses run by older owners are more likely to survive past the early years than those run by younger owners, according to JPMorgan Chase & Co.
These tips will help you create and sustain a thriving business.
- Have a solid business plan. “The odds are stacked against you when you’re trying to grow and sustain a business,” Schulz says. “If you aren’t coming in with well-thought-out business plans, things can get way more difficult. Do your homework when it comes to things like researching your competition, understanding your audience and gathering funding.”
- Leverage available resources. Small business owners and entrepreneurs have numerous resources available at the national, state and local levels. However, older adults can also access targeted resources such as small business loans, grants, coaching, incubators, courses and work-sharing spaces specifically for them. The SBA and U.S. Chamber of Commerce are excellent sources for finding additional resources. “Look into government agencies, nonprofit organizations and other groups that help small businesses with various pain points,” Schulz says.
- Be willing to pivot. “Take advantage of that wisdom you’ve earned over the years and course-correct if you need to,” Schulz advises. “Successful businesses can adapt, so don’t be afraid to throw parts of your plan out the window if they’re not working.”
- Get support from your network. According to SCORE, support from family and friends is the top factor older business owners cite as helpful. “It takes a village to run a successful business,” Schulz says. “Leverage your network of friends, colleagues and family for support — whether financial, physical or just as a cheering section.”
Methodology
LendingTree researchers compiled five data points for our 2024 Boomer Entrepreneurs report:
- Percentage of U.S. businesses owned by residents 55 and older. Source: U.S. Census Bureau 2022 Annual Business Survey, which covers 2021.
- Percentage change in the number of U.S. businesses owned by residents 55 and older. Source: Census Bureau 2022 and 2021 Annual Business Surveys, which cover 2021 and 2020.
- Percentage of the 55-and-older working population that’s self-employed. Source: Census Bureau 2022 American Community Survey (with one-year estimates) microdata.
- Percentage of U.S. businesses that rate their current business performance as above average or excellent. Source: Census Bureau Business Trends and Outlook Survey (BTOS), fielded from April 22 to May 5, 2024.
- Percentage of U.S. businesses that expect their performance six months from now will be above average or excellent. Source: Census Bureau BTOS, fielded from April 22 to May 5, 2024.
Researchers ranked each state in each metric and created an index based on average rankings across the five metrics.
The Pew Research Center defines baby boomers as those born between 1946 and 1964. That means boomers would be ages 56 to 74 in 2020, or 60 to 78 in 2024. Because we include data points from 2020, 2021, 2022 and 2024, we used baby boomers and older adults interchangeably.