Canadian Marketing Blog

Will Boomers Lead Economic Recovery?

According to The National Post, when the long slow grind to economic health begins, it will likely be spearheaded by baby boomers and midlifers, who are set to bring their considerable knowledge, skills and energy to a pursuit that could change the small business landscape for years.

Unlike retirees of the past, many of the soon-to-retire boomers plan to take up careers in entrepreneurship. Several studies show more than 70 per cent of Canadian boomers plan to work beyond their corporate careers. About half of these aim to set up small businesses, mainly in the knowledge-based businesses such as consulting, contracting, or another service-related business. They also tend to focus on areas governed by their interests, knowledge and passions rather than forecasted economic boom areas. Experts have long said the most critical success factor for an entrepreneur is a combination of passion and knowledge.

In the U.S. where boomers number about 80 million, the Ewing Marion Kauffman Foundation, which studies entrepreneurship, just released a study titled Coming Entrepreneurship Boom that indicates boomer entrepreneurs likely will power the economic recovery, running contrary to existing worries about retirement funding and other age-related issues. Surprisingly, there have been few studies in Canada on this, even though, proportionally, this country has one of the largest cohorts of boomers in the world with 10 million people who are within 10 to 15 years of traditional retirement age. Let’s hope that similar to the U.S., the largest age group of our population is also the most entrepreneurial which will bode well for our economic future.

Very true, the economic strains of today have actually worked in our favor, self starters, fresh ideas, and a slew of home grown businesses have been popping up all around the world. There is no better economic security than a hard work ethic, a passion for what you do, and self reliant individuals.

Very interesting post. There are a couple of key points that you made that stuck out in my mind. The first is what baby boomers are planning to do with their careers when they hit traditional retirement age. I fully agree that many will continue working, and will do so on their own terms --- i.e. consulting, contract, project and casual work. This will happen for 2 simple reasons. The first reason is that the shortage of pure knowledge will create this, and second, boomers just aren't able to retire completely for financial reasons. Traditional pension plans and external investments are taking huge hits right now, and the ability of people to save properly in light of escalating living costs and the western world's consumption first attitude are playing huge roles. The second key point that stuck out for me that is a bit more controversial is that baby boomers will drive economic recovery. I think you contradicted yourself in this idea by saying that boomers will do consulting work and will set up small businesses in knowledge-based areas, but they will do all of these things in areas specific to their own interests, not necessarily in areas driven by the economy. If this is true, how can you drive economic recovery if you are working in areas that are not "high need" areas. I fully agree that boomers will continue to work in more entrepreneurial areas beyond traditional retirement ages, but I disagree that they will be the main source that will fuel economic recovery. Those people that set up shop and work in areas that the economy desperately needs will fuel economic growth, and these people will be found in any one of the 4 generations that currently make up our workforce - Traditionalist, Baby Boomer, Gen X and Gen Y. The term "entrepreneur" is loosely used to define someone who sets up a business, but to me, a true entrepreneur that makes an impact is one that takes on some significant risk and is doing something that creates value, opportunity and growth.