Skip to main content
SpringerLink
Log in

Entrepreneurial intentions in the third age: the impact of perceived age norms

  • Published:
Small Business Economics Aims and scope Submit manuscript

Abstract

This article investigates the impact of perceived age norms on the formation of entrepreneurial intentions in the third age. Age norms refer to those social norms that determine whether establishing and running a business are considered appropriate behavior for a mature individual. An empirical analysis of Finnish individuals finds that norms perceived as permissive of enterprising activity in the third age exert a significant positive influence on entrepreneurial intentions in this segment, even when controlling for the general level of entrepreneurship in the municipalities. This influence is partially mediated by whether the individual has a positive attitude toward entrepreneurship, by how the individual perceives their own ability to start and run a business, by the extent of support from their family and friends they perceive and by the importance of that support to them. Thus, if policy aims to increase enterprising activity in the third-age segment, the portfolio of instruments should include measures that address people’s general awareness of third-age entrepreneurship as a viable, positive and attractive late-career option.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Acs, Z. J., Desai, S., & Hessels, J. (2008). Entrepreneurship, economic development and institutions. Small Business Economics, 31(3), 219–234.

    Article  Google Scholar 

  • Ajzen, I. (1988). Attitudes, personality, and behavior. Chicago: Dorsey Press.

    Google Scholar 

  • Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211.

    Article  Google Scholar 

  • Ajzen, I. (2002). Residual effects of past on later behavior: Habituation and reasoned action perspective. Personality and Social Psychology Review, 6(2), 107–122.

    Article  Google Scholar 

  • Ajzen, I., & Fishbein, M. (2004). Questions raised by reasoned action approach: Comment on Odgen (2003). Health Psychology, 23(4), 431–434.

    Article  Google Scholar 

  • Audretsch, D. B., & Fritsch, M. (1994). On the measurement of entry rates. Empirica, 21(1), 105–113.

    Article  Google Scholar 

  • Audretsch, D. B., & Fritsch, M. (2002). Growth regimes over time and space. Regional Studies, 36(2), 113–124.

    Article  Google Scholar 

  • Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191–215.

    Article  Google Scholar 

  • Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.

    Article  Google Scholar 

  • Baucus, D. A., & Human, S. E. (1994). Second-career entrepreneurs: A multiple case study analysis of entrepreneurial processes and antecedent variables. Entrepreneurship Theory and Practice, 19(2), 41–71.

    Google Scholar 

  • Bird, B. (1988). Implementing entrepreneurial ideas: The case for intention. Academy of Management Review, 13(3), 442–453.

    Google Scholar 

  • Botham, R., & Graves, A. (2009). Third age entrepreneurs: Innovative business start ups in mid-life and beyond—understanding the drivers and removing the barriers. Interim report to NESTA, February 2009.

  • Carr, J. C., & Sequeira, J. M. (2007). Prior family business exposure as intergenerational influence and entrepreneurial intent: A theory of planned behavior approach. Journal of Business Research, 60(10), 1090–1098.

    Article  Google Scholar 

  • Chin, W. W. (1998). The partial least squares approach to structural equation modelling. In G. A. Marcoulides (Ed.), Modern methods in business research (pp. 295–336). Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Chin, W. W. (2000). Frequently asked questions—partial least squares & PLS-Graph. http://disc-nt.cba.uh.edu/chin/plsfaq.htm.

  • Chiu, W. C. K., Chan, A. W., Snape, E., & Redman, T. (2001). Age stereotypes and discriminatory attitudes towards older worker: An east–west comparison. Human Relations, 54(5), 629–661.

    Article  Google Scholar 

  • Churchill, G. A., Jr. (1979). A paradigm for developing better measures of marketing constructs. Journal of Marketing Research, 16(1), 64–73.

    Article  Google Scholar 

  • Cohen, J. (1988). Statistical power analysis for the behavioral sciences. Hillsdale, NJ: Erlbaum.

    Google Scholar 

  • Cote, J. A., & Buckley, M. R. (1987). Estimating trait, method and error variance: Generalizing across 70 construct validation studies. Journal of Marketing Research, 24(3), 315–318.

    Article  Google Scholar 

  • Curran, J., & Blackburn, R. (2001). Older people and the enterprise society: Age and self-employment propensities. Work Employment and Society, 15(4), 889–902.

    Google Scholar 

  • Fink, M., Harms, R., & Kraus, S. (2008). Cooperative internationalization of SMEs: Self-commitment as a success factor for international entrepreneurship. European Management Journal, 26(6), 429–440.

    Article  Google Scholar 

  • Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Fornell, C., & Bookstein, F. L. (1982). Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research, 19(4), 440–452.

    Article  Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Fritsch, M. (2004). Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany. Journal of Evolutionary Economics, 14(5), 525–542.

    Article  Google Scholar 

  • Fritsch, M., & Mueller, P. (2007). The persistence of regional new business formation-activity over time—assessing the potential of policy promotion programs. Journal of Evolutionary Economics, 17(3), 299–315.

    Article  Google Scholar 

  • Giannetti, M., & Simonov, A. (2004). On the determinants of entrepreneurial activity: Social norms, economic environment and individual characteristics. Swedish Economic Policy Review, 11(2), 269–313.

    Google Scholar 

  • Giddens, A. (1984). The constitution of society: Outline of the theory of structuration. Cambridge: Polity Press.

    Google Scholar 

  • Harman, H. H. (1976). Modern factor analysis (3rd ed.). Chicago: University of Chicago Press.

    Google Scholar 

  • Hart, M., Anyadike-Danes, M., & Blackburn, R. (2004, November). Entrepreneurship and age in the UK: Comparing third age and prime age new venture creation across the regions. Paper presented at RENT XVIII, Copenhagen.

  • Hox, J. (2002). Multilevel analysis: Techniques and applications. Mahwah, NJ: Erlbaum.

    Google Scholar 

  • Jacoby, J. (1978). Consumer research: How valid and useful are all our consumer behavior research findings? A state of the art review. Journal of Marketing, 42(2), 87–96.

    Article  Google Scholar 

  • Johnson, P., & Zimmermann, K. F. (1993). Ageing and the European labour market: Public policy issues. In P. Johnson & K. F. Zimmermann (Eds.), Labour markets in an ageing Europe (pp. 1–25). Cambridge: Cambridge University Press.

    Google Scholar 

  • Kangasharju, A. (2000). Regional variations in firm formation: Panel and cross-section data evidence from Finland. Papers in Regional Science, 79(4), 355–373.

    Article  Google Scholar 

  • Kautonen, T. (2008). Understanding the older entrepreneur: Comparing third age and prime age entrepreneurs in Finland. International Journal of Business Science and Applied Management, 3(3), 3–13.

    Google Scholar 

  • Kautonen, T., Down, S., & South, L. (2008). Enterprise support for older entrepreneurs: The case of PRIME in the UK. International Journal of Entrepreneurial Behaviour & Research, 14(2), 85–101.

    Article  Google Scholar 

  • Koch, L. T. (1998). Kognitive Determinanten der Problementstehung und -behandlung im wirtschaftspolitischen Prozeß. Zeitschrift für Wirtschafts- und Sozialwissenschaften, 118, 597–622.

    Google Scholar 

  • Kolvereid, L. (1996). Prediction of employment status choice intentions. Entrepreneurship Theory and Practice, 21(1), 47–57.

    Google Scholar 

  • Krueger, N. F., & Carsrud, A. L. (1993). Entrepreneurial intentions: Applying the theory of planned behavior. Entrepreneurship and Regional Development, 5(4), 315–330.

    Article  Google Scholar 

  • LaFuente, E., Vaillant, Y., & Rialp, J. (2007). Regional differences in the influence of role models: Comparing the entrepreneurial process of rural Catalonia. Regional Studies, 41(6), 779–795.

    Article  Google Scholar 

  • Lawrence, B. S. (1988). New wrinkles in the theory of age: Demography, norms, and performance ratings. Academy of Management Journal, 31(2), 309–337.

    Article  Google Scholar 

  • Lévesque, M., & Minniti, M. (2006). The effect of aging on entrepreneurial behavior. Journal of Business Venturing, 21(2), 177–194.

    Article  Google Scholar 

  • Liñán, F., & Chen, Y.-W. (2009). Development and cross-cultural application of a specific instrument to measure entrepreneurial intentions. Entrepreneurship Theory and Practice, 33(3), 593–617.

    Article  Google Scholar 

  • Lohmöller, J.-B. (1989). Latent variable path modelling with partial least squares. Heidelberg: Physica.

    Google Scholar 

  • Lundström, A., & Stevenson, L. A. (2005). Entrepreneurship policy: Theory and practice. New York: Springer.

    Google Scholar 

  • McKay, R. (2001). Women entrepreneurs: Moving beyond family and flexibility. International Journal of Entrepreneurial Behavior & Research, 7(4), 148–165.

    Article  Google Scholar 

  • Mitchell, R. K., Mitchell, J. R., & Smith, J. B. (2008). Inside opportunity formation: Enterprise failure, cognition, and the creation of opportunities. Strategic Entrepreneurship Journal, 2(3), 225–242.

    Article  Google Scholar 

  • Neugarten, B. L., Moore, J. W., & Lowe, J. C. (1965). Age norms, age constraints, and adult socialization. American Journal of Sociology, 70(6), 710–717.

    Article  Google Scholar 

  • OECD. (2001). Fiscal implications of ageing: Projections of age-related spending. OECD Economic Outlook, 69(IV), 145–167.

    Google Scholar 

  • Pe’er, A., & Vertinsky, I. (2008). Firm exits as a determinant of new entry: Is there evidence of local creative destruction? Journal of Business Venturing, 23(3), 280–306.

    Article  Google Scholar 

  • Platman, K. (2004). “Portfolio careers” and the search for flexibility in later life. Work, Employment and Society, 18(3), 573–599.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • PRIME. (2005). Reaching the older workless—an evaluation of PRIME’s enterprise South Tyneside outreach project. Final Report, July.

  • Reynolds, P. D., Hay, M., Bygrave, W. D., Camp, S. M., & Autio, E. (2000). Global Entrepreneurship Monitor: 2000 Executive report. Missouri: Kauffman Center for Entrepreneurial Leadership.

    Google Scholar 

  • Ringle, C. M., Wende, S., & Will, A. (2005). SmartPLS 2.0.M3. http://www.smartpls.de.

  • Ritsilä, J. J. (1999). Regional differences in environments for enterprises. Entrepreneurship and Regional Development, 11(2), 187–202.

    Article  Google Scholar 

  • Rotefoss, B., & Kolvereid, L. (2005). Aspiring, nascent and fledgling entrepreneurs: An investigation of the business start-up process. Entrepreneurship and Regional Development, 17(2), 109–127.

    Article  Google Scholar 

  • Settersten, R. A., & Mayer, K. U. (1997). The measurement of age, age structuring, and the life course. Annual Review of Sociology, 23, 233–261.

    Article  Google Scholar 

  • Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.

    Article  Google Scholar 

  • Singh, G., & DeNoble, A. (2003). Early retirees as the next generation of entrepreneurs. Entrepreneurship Theory and Practice, 23(3), 207–226.

    Article  Google Scholar 

  • Smallbone, D., & Welter, F. (2001). The distinctiveness of entrepreneurship in transition economies. Small Business Economics, 16(4), 249–262.

    Article  Google Scholar 

  • Srite, M., & Karahanna, E. (2006). The role of espoused national cultural values in technology acceptance. MIS Quarterly, 30(3), 679–704.

    Google Scholar 

  • Statistics Finland. (2009). Statistical grouping of municipalities 2009. http://www.stat.fi/meta/luokitukset/kuntaryhmitys/001-2009/index_en.html.

  • Tkachev, A., & Kolvereid, L. (1999). Self-employment intentions among Russian students. Entrepreneurship and Regional Development, 11(3), 269–280.

    Article  Google Scholar 

  • Vaillant, Y., & LaFuente, E. (2007). Do different institutional frameworks condition the influence of local fear of failure and entrepreneurial examples over entrepreneurial activity? Entrepreneurship and Regional Development, 19(4), 313–337.

    Article  Google Scholar 

  • von Nordheim, F. (2004). Responding well to the challenge of an ageing and shrinking workforce: European Union policies in support of member state efforts to retain, reinforce & re-integrate older workers in employment. Social Policy & Society, 3(2), 145–153.

    Article  Google Scholar 

  • Walker, E. A., & Webster, B. J. (2007). Gender, age and self-employment: Some things change, some stay the same. Women in Management Review, 22(2), 122–135.

    Article  Google Scholar 

  • Weber, P., & Schaper, M. (2004). Understanding the grey entrepreneur. Journal of Enterprising Culture, 12(2), 147–164.

    Article  Google Scholar 

  • Webster, B. J., Walker, E. A., & Turner, J. (2005, June). Smart training for the older entrepreneur. Paper presented at the ICSB 2005 world conference, Melbourne.

  • Wold, H. (1985). Partial least squares. In S. Kotz & N. L. Johnson (Eds.), Encyclopedia of statistical sciences (Vol. 6, pp. 581–591). New York: Wiley.

    Google Scholar 

  • Yung, Y.-F., & Bentler, P. M. (1996). Bootstrapping techniques in analysis of mean and covariance structures. In G. A. Marcoulides & R. E. Schumacker (Eds.), Advanced structural equation modelling: Issues and techniques (pp. 195–226). Mahwah, NJ: Erlbaum.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Turku School of Economics, Turku, Finland

    Teemu Kautonen & Ewald Kibler

  2. Saint Etienne School of Management, Saint Etienne, France

    Erno T. Tornikoski

Authors
  1. Teemu Kautonen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Erno T. Tornikoski
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ewald Kibler
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Teemu Kautonen.

Appendix

Appendix

See Table 4.

Table 4 Construct variables
Full size table

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kautonen, T., Tornikoski, E.T. & Kibler, E. Entrepreneurial intentions in the third age: the impact of perceived age norms. Small Bus Econ 37, 219–234 (2011). https://doi.org/10.1007/s11187-009-9238-y

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-009-9238-y

Keywords

JEL Classifications

Search

Navigation