Age and Entrepreneurship: The Surprising Facts About Business Owners in America

Table of Contents

1. Key Highlights:
2. Introduction
3. The Age of the Average Business Owner
4. Experience as an Entrepreneurial Asset
5. The Cities with the Oldest Business Owners
6. The Cities with the Youngest Business Owners
7. The Implications of Age on Entrepreneurial Success
8. Should You Start a Business Regardless of Age?

Key Highlights:

• The average age of small-to-medium business owners in the U.S. is now 54 years, challenging the stereotype that young entrepreneurs dominate the landscape.
• Santa Fe, NM, boasts the oldest average business owners at 59 years, while Provo, UT, has the youngest at 49 years, reflecting varied entrepreneurial environments across the country.
• Experience and established networks often contribute significantly to the success of older entrepreneurs, emphasizing that age can be an asset in the world of business.

Introduction

In the United States, entrepreneurship is often depicted as a youthful pursuit, characterized by tech-savvy millennials and ambitious Gen Z innovators. However, in recent years, this narrative has shifted, revealing a more nuanced reality. Recent research demonstrates that the average American business owner is not in their twenties or thirties but has likely crossed into their fifties. This article delves into the age demographics of American entrepreneurs, exploring where the oldest and youngest business owners are located and examining the implications of these trends on the entrepreneurial landscape.

The Age of the Average Business Owner

The notion that entrepreneurship is reserved for the young is increasingly outdated. According to a study by Ooma, a business phone services provider, the average age of small-to-medium business owners across the United States is now 54 years. This statistic highlights a significant demographic shift, as it positions the majority of entrepreneurs in the "middle-aged" category. The research revealed that the average age varies by location, with Provo, UT, showcasing a youthful entrepreneurial spirit at an average age of 49, while Santa Fe, NM, stands out with an average age of 59.

This trend raises an important question: does age matter in entrepreneurship? A growing body of evidence suggests that it does, particularly in terms of success rates and the ability to navigate the complexities of starting and running a business.

Experience as an Entrepreneurial Asset

While younger entrepreneurs may possess energy and a willingness to take risks, they often lack the experience that can make a crucial difference in business success. A separate study from Harvard University emphasizes that successful founders often begin their ventures at around 40 years old. Furthermore, research indicates that a 60-year-old entrepreneur is three times more likely to succeed than someone in their thirties. These findings underscore the critical role that accumulated knowledge and professional connections play in fostering successful entrepreneurship.

Experience equips older entrepreneurs with a deeper understanding of their respective industries, enabling them to identify market gaps and consumer needs more effectively. Moreover, established networks can provide essential resources such as mentorship, funding avenues, and customer bases, which are often out of reach for younger, less experienced individuals.

The Cities with the Oldest Business Owners

The geographical distribution of business owners also reveals intriguing patterns. Santa Fe, NM, leads the list of cities with the oldest entrepreneurs, where the average owner is approximately 59 years old. This city, known for its vibrant arts scene and historical significance, has a slower population growth and a higher cost of living, which may deter younger individuals from settling there. Consequently, this environment allows established professionals to thrive and serve their local communities confidently.

Following closely is Napa, CA, where the average business owner is around 57 years old. Similar to Santa Fe, Napa is characterized by a significant retired population and a high cost of living, contributing to an older demographic among business owners. Monroe, LA, ranks third, with an average age of 57. While Monroe's population is currently declining, recent investments, including a $12.5 million expansion by Mid South Extrusion, signal a potential resurgence in local entrepreneurship.

The Cities with the Youngest Business Owners

Conversely, Provo, UT, emerges as a beacon for young entrepreneurs, boasting an average owner age of 49. This city is notable for its supportive business environment, characterized by low taxes and minimal regulatory obstacles. Utah's commitment to fostering small businesses is evident, with over 99% of the state's businesses falling within this category. Provo's entrepreneurial landscape is diverse, featuring unique small businesses that contribute to a vibrant local economy.

Bozeman, MT, follows Provo with an average business owner age of 51, showcasing the city’s rapid growth and recognition as a startup hub. Its entrepreneurial ecosystem has garnered national attention, with Entrepreneur magazine ranking Montana as the best state for startups in 2025 due to high survival rates and a prolific number of new businesses.

Fargo, ND, also ranks favorably with an average age of 51 among business owners. The state's largest city, Fargo has attracted a younger demographic, bolstered by its affordability and opportunities for families. Recognized as "America's #1 Next Boomtown," Fargo's appeal lies in its potential for growth and development, making it an attractive destination for aspiring entrepreneurs.

The Implications of Age on Entrepreneurial Success

The data clearly indicates that age and experience play a significant role in determining the success of entrepreneurs. Established business owners often possess a wealth of knowledge that enables them to make informed decisions, mitigate risks, and capitalize on opportunities. This advantage is particularly relevant in today's competitive market, where understanding consumer behavior and industry trends is vital for success.

Moreover, older entrepreneurs are typically better equipped to manage the financial and operational aspects of their businesses. Their experiences in the workforce often translate to better strategic planning, risk assessment, and crisis management—skills that are critical for navigating the challenges of entrepreneurship.

Should You Start a Business Regardless of Age?

With this wealth of information, a pertinent question arises: should potential entrepreneurs embark on their business journey regardless of their age? The evidence suggests that age should not deter anyone from pursuing their entrepreneurial dreams. Whether young or old, individuals with innovative ideas and a passion for their craft can find success in the business world.

For older individuals, starting a business can be an empowering way to leverage their experiences and create something meaningful. Conversely, younger entrepreneurs can benefit from mentorship and guidance from seasoned professionals, illustrating that collaboration can drive success across age groups.

If you're contemplating a business venture, connecting with your local Chamber of Commerce can be a valuable first step. They can provide resources, networking opportunities, and insights into the local business landscape, helping you navigate the initial stages of entrepreneurship.

FAQ

What is the average age of business owners in the United States?

The average age of small-to-medium business owners in the U.S. is currently 54 years.

Which U.S. city has the oldest business owners?

Santa Fe, NM, has the oldest average business owners, with an age of approximately 59 years.

Where can I find young business owners?

Provo, UT, ranks as the city with the youngest business owners, averaging 49 years old.

Does age impact entrepreneurial success?

Yes, research indicates that older entrepreneurs often have higher success rates due to their accumulated experience, established networks, and industry knowledge.

Is it too late to start a business if I'm older?

No, it is never too late to start a business. Experience and knowledge can be significant assets that contribute to entrepreneurial success.