Discover more from Unknown Unknowns
Exploring what you don't see
Over 1,000 subscribers
Continue reading
I’ve heard that the average age of an entrepreneur is in the 40s so it’s not too late to leave your job and start a company. I wonder if that’s because of survival bias. In other words, there are just as many young entrepreneurs as old entrepreneurs but the older ones are more likely to succeed.
It also makes me think of the information asymmetry between entrepreneurs and VCs. A common story of successful entrepreneurs is, “If I knew how hard it would be, I never would have started it.” VCs have a portfolio strategy to normalize their outcomes.
Age of Entrepreneurs
I'm not sure that statistic illustrates survivorship bias.
The keywords are: "average age". If the "average age of an entrepreneur is in the 40s" that *must* mean there are entrepreneurs younger than 40 and also those older than 40.
From what I gather, the median age of the U.S. population in 2021 was 38.8 years. While not the same as the "average" age, the value's still pretty darn close. It makes sense that the average age of an entrepreneur would be a bit higher (than the median of the population) because young kids are less likely to be entrepreneurs.
So, if anything, it seems like the statistic affirms your suspicions that there are a large number of entrepreneurs younger than 40. 😄