Most of the famous entrepreneurs we hear about are fairly young. We tend to read in the popular press about the Mark Zuckerbergs of the world and assume that all successful entrepreneurs launch businesses in their 20s. However, this couldn’t be further from reality.
Recent studies show that older entrepreneurs are increasing while the number of younger entrepreneurs is decreasing. According to the Kauffman Index of Entrepreneurial Activity, the share of entrepreneurs in the 55-64 age group jumped from 14.3 percent in 1996 to 23.4 percent in 2012. In contrast, the share of entrepreneurs in the youngest age group of 20-34-year-olds decreased from 34.8 percent in 1996 to 26.2 percent in 2012.
Buyouts tend to come in waves. The first arrived in the 1980s, when a series of high-profile leveraged buyouts shook the corporate world. Buyouts surged again in the mid-1990s, the late 1990s, the early 2000s, and around 2006.
In peak years, there were nearly a hundred buyouts — in off years, as few as 10. The 2008 financial crisis is a striking reminder of this boom-bust feature of buyout markets. At the bottom of the market in 2008 we counted as little as 10 deals; the value of these deals was also low at 48 basis points fraction of total stock market capitalization.
We’ve all heard the message from our parents: If you work hard, get a good education, and play by the rules, you will do well in life. Baby boomers like me were able to turn that formula into the American Dream.
But while we were able to graduate from high school, vocational school programs, or college into an economy that was growing and providing us with great opportunities, we cannot make the same promise to our children and grandchildren today. Instead of hope, the nation faces a widening economic divide; according to Gallup and other surveys, a majority of Americans agree that the U.S. has been going in the wrong direction for at least a decade, and they expect thenext generation will have a lower standard of living than ours.
Is this gloomy outlook inevitable? Have the global economy, ever-advancing technology, and other forces left us with no control over the destiny of future generations? Only if we choose to do nothing. Reversing course is possible, but it will take a cross-generational effort by baby boomers and next-generation leaders to negotiate what I call a New Social Contract that fits and works with the features of the future economy and workforce.
Thomas Kochan is the George Maverick Bunker Professor of Management, a Professor of Work and Employment Research and Engineering Systems, and the Co-Director of the MIT Sloan Institute for Work and Employment Research at the MIT Sloan School of Management.
The U.S. stock market is now at new highs. So why are average Americans continuing to struggle and not feeling this prosperity? What causes this apparent disconnect between market highs and citizen well-being?
As the expression goes, stocks are climbing a wall of worry. And by our estimates, despite economic malaise, the stock market hasn’t peaked, and we’re still on the way up. Here are some reasons why:
During a recession, why do some people spend money while others save?
Money issues can be grounds for conflict in relationships. One person may be a spender while the other is a saver. Throw in financial stress such as an economic recession and one person’s preference can seem completely irrational to the other.
How can people be so different when it comes to the “right” decisions? Recent research shows that our childhood economic environments have a lot to do with how we make financial decisions and handle financial risk later in life