Afraid Success Has Passed You By? To Be Remarkably Successful, Science Says Time (and Mastery) Is Truly on Your Side

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Afraid Success Has Passed You By? To Be Remarkably Successful, Science Says Time (and Mastery) Is Truly on Your Side

By Jeff Haden | Inc Magazine | July 2, 2024

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A VC friend told the author he estimates the average age of the entrepreneurs who pitch him is somewhere around 25, if only because most of the most valuable tech companies were launched by young entrepreneurs.

For many, the father of the Taiwanese semiconductor industry, Morris Chang, is the exception that proves the rule: Chang was 55 when he founded the now $700 billion Taiwan Semiconductor Manufacturing Company.  Yet he was hardly an exception. A study conducted by the Census Bureau and two MIT professors found the most successful entrepreneurs tend to be middle-aged, even in the technology sector. 

After compiling a list of 2.7 million company founders who hired at least one employee between 2007 and 2014, researchers found the average age of those who founded the most successful tech companies was 45 years.  In general terms, a 50-year-old entrepreneur was almost twice as likely to start an extremely successful company as a 30-year-old. A 60-year-old startup founder was three times more likely to launch a successful startup than a 30-year-old startup founder and nearly twice as likely to have launched a startup that ranks in the top 0.1 percent (in terms of revenue) of all companies. 

Makes sense. Ideas are great, but execution is everything — and it’s much harder to execute well when you have limited experience.  That’s especially true when leadership experience is a factor. I can have a groundbreaking idea, but if I don’t have the skills needed to turn a collection of individuals into a team, I’ll probably fail.  But there’s a deeper reason. People who succeed at a young age tend to make conceptual breakthroughs. Like Bill Gates and his “computer on every desk and in every home.” Like Bezos and his “everything store.”  While Gates and Bezos didn’t have the skills to run multibillion-dollar companies, they did have breakthrough ideas and then they developed the necessary skills. 

Contrast that with people who start companies later in life. Most build on skills, knowledge, and experience they’ve gained.  Chang worked his way up the corporate ladder to become a vice president at Texas Instruments. Ray Kroc held a number of sales jobs before purchasing McDonald’s when he was 52. 

If you truly make a conceptual breakthrough, you may be able to be wildly successful at a young age. Most of the time, though, older entrepreneurs have a decided advantage.  While ideas matter, especially genuinely breakthrough ideas, execution almost always matters more.  Research shows age isn’t a competitive disadvantage; instead, your experience, skills, connections, and expertise are what will make you successful.  As long as you put those attributes — attributes you’ve earned — to work for you.

3 key takeaways from the article

1. According to a VC the average age of the entrepreneurs who pitch him is somewhere around 25, if only because most of the most valuable tech companies were launched by young entrepreneurs. 
2. For many, the father of the Taiwanese semiconductor industry, Morris Chang, is the exception that proves the rule: Chang was 55 when he founded the now $700 billion Taiwan Semiconductor Manufacturing Company.  Yet he was hardly an exception. A study conducted by the Census Bureau and two MIT professors found the most successful entrepreneurs tend to be middle-aged, even in the technology sector. 
3. Makes sense. Ideas are great, but execution is everything — and it’s much harder to execute well when you have limited experience.  That’s especially true when leadership experience is a factor.  People who succeed at a young age tend to make conceptual breakthroughs.  Contrast that with people who start companies later in life. Most build on skills, knowledge, and experience they’ve gained.

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Topics:  Startups, Entrepreneurship