Profile of Mid-Career Entrepreneurs

1. Introduction

It is widely acknowledged that entrepreneurs are the sparkplugs of economic activity. At the most elemental level — they get things started. Entrepreneurial activity benefits all Canadians. It is not only good for entrepreneurs themselves, it is also a powerful force driving innovation, productivity, job creation and economic growth.^{Footnote 2}

With a large segment of the population now reaching the midpoint of their careers and thus possessing increasing social and economic significance, the option of entrepreneurship as a career path for mid-career employees has become an increasingly popular alternative. In 2007, 41 percent of all small and medium-sized enterprise (SME) owners were between 30 and 49 years old and at least 5 percent of them could be considered mid-career entrepreneurs as they had less than five years of experience in owning or managing a business.^{Footnote 3}

While there is an increasing prevalence of entrepreneurship, there is also a lack of research examining both the profile of these individuals as well as the impediments faced by mid-career entrepreneurs. The primary objective of this report was to create a profile of individuals who have chosen to leave their corporate careers and venture out on their own at the midpoint of their career. In addition to creating a profile of mid-career entrepreneurs, this report's objective was to validate the findings from the literature suggesting that prior knowledge is a key determinant of entrepreneurial success.^{Footnote 4}

Fourteen Canadian mid-career entrepreneurs were interviewed for this report. They were divided into the three following sectors: professional services, technology and consumer products, and energy and real estate. Their responses were aggregated to provide a profile of mid-career entrepreneurs, to identify corporate practices that either promote or encumber the process of mid-career entrepreneurship and to verify whether prior knowledge is a key determinant of entrepreneurial success. The results are presented in three following sections:

• General characteristics of entrepreneurs and firms;
• Skills, knowledge and experience of the entrepreneur; and
• Issues and barriers surrounding mid-career entrepreneurship.

While this report sheds light on characteristics of mid-career entrepreneurs, the sample used does not allow us to draw conclusions that are representative of the entire population of mid-career entrepreneurs across all industries.

Footnotes

Footnote 2

Industry Canada, The State of Entrepreneurship in Canada, February 2010.

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Footnote 3

Statistics Canada, Survey on Financing of Small and Medium Enterprises, 2007.

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Footnote 4

Shane, Scott. Prior Knowledge and the Discovery of Entrepreneurial Opportunities, Organization Science, 2000.

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