Small Businesses With Older Founders Most Likely to Survive, Report Finds
Small businesses with owners 55 years of age and older are most likely to survive, but are least likely to have employees, finds a JPMorgan Chase Institute study.
According to their findings, a firm founded by a 30-year-old has an 11.1 percent predicted probability of closing after its first year, a firm run by a 45-year-old has a 9.6 percent probability, while one founded by a 60-year-old has an 8.2 percent probability of exiting after its first year.
The report says the reason for this could be older founders have more work experience, helping them to survive the critical early years or they may have a larger network of potential clients or personal assets that could provide initial funding or cash buffers.
The study tracked data from 138,000 firms founded in 2013 and their first four years of operations, ending in February 2018.