Zoomer entrepreneurs face tough times

It's not a new trend, but what is new are the major challenges entrepreneurs have been facing since the economy took a nosedive last year. So how is the recession affecting the self-employed?

More workers going it alone

Think a recession would slow enthusiasm for starting a new business? Not so, according to the latest numbers from Statistics Canada. Between August 2008 and August 2009, the number of self-employed workers in Canada increased by 3.5 percent -- that's over 92,000 people. (In comparison, the number of paid workers fell by 2.7 percent.)

If those numbers still seem a little modest, consider this: Between 1987 - 2005 the increase in self-employment was an average of 2.2 per cent each year, and the number of paid workers rose an average of 1.4 percent annually. Currently, there are more than 2.7 million self-employed workers in Canada, up from 2.5 million in 2005.

If you've been following the trends, you already know that boomers are a driving force behind the numbers. They're re-thinking their retirement, and that can mean freelancing and consulting, starting a new career and even launching a new company. And why not? Boomers have the experience, the skills and the business savvy, not to mention the creativity and greater financial freedom. In fact, previous studies have shown that people over 50 are more likely to be self-employed than their younger counterparts. (See Mind your own business for details.)

Boomers are also key to economic growth. A recent report from the UK National Endowment for Science, Technology and the Arts (NESTA) found that entrepreneurs between the ages of 50 and 65 were responsible for more than a quarter of the companies founded between 2001 - 2005 -- that's over 90,000 companies and 400,000 new jobs. The findings also noted that these "third age founders" were eager to give back to society, and just as willing to take risks as younger entrepreneurs.