Focus
Understanding the keywords and concepts related to entrepreneurship, particularly small-scale ventures for retirees, is crucial for grasping the opportunities and challenges involved. In this section we will take a closer look at the key elements and concepts involved in turning your DIY hobby into a sustainable small-scale business.
What is Entrepreneurship?
In your long personal and career path so far, you may have heard the term “entrepreneurship” many times, but perhaps you never paid enough attention to it, or maybe you never cared, or you are perfectly familiar with it. In any case, here is the most popular definition: Entrepreneurship is the process of designing, launching, and running a new business. The European Commission, in its 2003 Green Paper on Entrepreneurship, defines entrepreneurship as: “The mindset and process to create and develop economic activity by blending risk-taking, creativity and/or innovation with sound management, within a new or an existing organisation.” This definition encompasses several key aspects that go beyond simply starting a business. It highlights the importance of a specific mindset—a proactive approach, a willingness to embrace risk, and a drive to create something new. It emphasizes that entrepreneurship is not just about having an idea but about the entire process of bringing that idea to life, from development to ongoing management. It recognizes that economic activity can be created through both new ventures and the revitalization of existing organizations.
! Thinking point !In your own words, how would you define entrepreneurship? What potential benefits and challenges do you associate with starting a business in retirement?
Why become an entrepreneur in retirement?
Have you considered becoming an entrepreneur? Were you biased or scared that it would be too time-consuming? When asked about their biggest regrets, older people rank:
- Not following their passions!
- Worrying too much in general!
- Caring too much about what others think!
- Being afraid to do the things they liked!
Becoming an entrepreneur at an older age can provide numerous benefits that enhance both personal and financial well-being. Here are some compelling reasons to consider this path:
Benefits of being an older entrepreneur:
Entrepreneurship offers a unique pathway for retirees to stay engaged, utilise their skills, and contribute to their communities. As you transition into retirement, starting a small-scale business can provide a sense of purpose, mental stimulation, and even a modest income, enhancing your overall well-being.
Starting a business …… what?
When considering a business venture at an older age, one should think of a small-scale business that is manageable, flexible and aligns with your desired lifestyle. It could be self-employment, a micro-enterprise, a part-time or a seasonal business. The key is that it should not be overly demanding or stressful, allowing you to enjoy your retirement while pursuing your passion. In any case, there’s no one-size-fits-all definition of a small-scale business. The key is that it should be something you enjoy and can sustain comfortably within your retirement lifestyle.
When considering your DYI hobby, a wide range of small-scale businesses could be considered, but here are the main types:
- Product-based: If you enjoy crafting, woodworking, knitting, or other hands-on activities, you could sell your creations at local markets, craft fairs, or online platforms like Etsy.
- Service-based: If you have expertise in a particular area, such as gardening, home repair, or tutoring, you could offer your services to individuals or businesses in your community.
- Online: The Internet, especially social media, provides a vast marketplace for selling products or services. You could create an online store, sell on social media and other online platforms, offer virtual consultations, or teach online courses related to your hobby.
- Local: Many communities have a demand for locally made products and personalised services. You could start by selling your goods at farmers’ markets, offering workshops or classes, or providing specialised services to your neighbours.
Starting a business at an older age – what skills does it take, and what skills can you bring?
Starting a business at an older age can be both exciting and challenging. It requires a mix of traditional business skills and the unique abilities that seniors often possess. In the table below, you can find some information about the essential skills needed and the valuable skills seniors bring to entrepreneurship.
| Essential skills needed for starting a business | The skills that seniors could bring into a business |
| Basic knowledge about business operations – this means to understand the fundamentals of running a business, such as accounting, marketing, and customer service. | Life experience – these are all those years of personal and professional experiences that provide valuable insights and a deep understanding of various situations. This experience can help you make informed business decisions. |
| Adaptability – this is about being open to learning new technologies and methods as the business landscape constantly evolves. | Problem-solving – these include the abilities gained through your life experience of overcoming challenges, thinking critically, and solving problems effectively. These skills are crucial for addressing issues that arise in business. |
| Networking – it is about building and maintaining relationships with customers, suppliers, and other business owners. | Network and building relationships – over the years, you have built extensive networks and relationships that can be leveraged for business opportunities, advice, and support. |
| Time management – it will help you to balance business activities with your personal life to avoid stress, negative emotions and frustrations. | Financial management skills – these come from years of experience with budgeting, saving, and managing finances. |
! Thinking point !Reflect on your career and personal experiences. Can you identify instances where you demonstrated entrepreneurial qualities such as initiative, problem-solving, and risk-taking? How can these experiences inform your approach to starting a small-scale, sustainable business from your hobby?