This research paper examines the specific problems that Baby Boomer women — those born between 1946 and 1964 — face when transitioning from corporate employment to entrepreneurship during or after retirement. Drawing on qualitative and quantitative research methods, including face-to-face interviews and focus groups, the study investigates the motivations, barriers, and strategies relevant to this demographic. Key issues explored include limited business management experience, reduced household income, insufficient savings, and the psychological shift from employee to entrepreneur. The paper also considers the broader economic and social implications of this trend, including the potential impact on job creation, gender equity in business ownership, and national economic development. Theoretical frameworks employed include systems theory and feminist theory.
Women in the United States between the ages of 47 and 65 are reaching retirement age and facing an unstable retirement landscape with regard to dwindling income sources (Gualco, 2012). In addition, corporations are downsizing their employees, and Baby Boomer women represent the largest group affected by this forced early exit from the workforce (Brown, 2006). Close to 47% of these women choose entrepreneurship as their next career option (Scales, 2011, p. 39). This paper investigates, using both qualitative and quantitative methods, the problems that Baby Boomer women are likely to face when transitioning to entrepreneurship and the strategies they need to employ in order to counteract those problems.
The study involves a qualitative examination of women between the ages of 47 and 65 who have left a company either voluntarily or involuntarily and are starting a business venture of their own choosing. The importance of this study is to provide organizations with a clearer view of the retirement issues that Baby Boomer women face as they transition to what is likely their final career. Beyond this, the paper seeks to explore how retired Baby Boomers would finance the remainder of their lives, whether they can manage entrepreneurial activities single-handedly, who will help them in their businesses, and what steps they would take to address the demands of business growth and expansion. These questions are informed by the following observations:
1. How will the retired Baby Boomer finance the remainder of his or her life?
Under normal circumstances, Baby Boomers at retirement are expected to relinquish their steady income stream and enter a phase in which they rely primarily on accumulated assets to finance the rest of their lives. However, there are those who never accumulated significant assets and must rely on pension income or resort to entrepreneurship as a means of financial support. This paper seeks to demystify the realities and myths associated with Baby Boomer retirement financing.
2. Can this business be organized by one person? Who will help the business owner do the work? What happens when the business grows?
This question is informed by the observation that at retirement age, many Baby Boomers are not as organized or committed as they were during their working years. This paper therefore seeks to find out how they organize their entrepreneurial activities, who helps them in their work, and what happens when their businesses expand.
This research is guided by the following questions:
1. What motivates Baby Boomer women to venture into entrepreneurship?
2. What problems are Baby Boomer women likely to encounter when becoming entrepreneurs?
3. What strategies do they consider using in order to counteract those challenges?
Baby Boomers face several challenges in their efforts to venture into entrepreneurship. According to a recent survey of American women, most women between the ages of 47 and 65 are starting businesses at a faster rate than any other age group. This trend reflects their attitudes toward retirement. The same study indicated that 63% of non-retired adults were more interested in working until traditional retirement age because they felt more satisfied in their work environment. A majority of Baby Boomers desire active and full lives, which is why many chose to work additional years rather than retire early (U.S. Department of Labor, 2010). The main problem arises when their working years come to an end: most find themselves challenged by the prospect of starting a business for a variety of reasons.
Part of the challenge stems from their deep familiarity with established routines in their former careers. Transitioning from a specialized role to an unfamiliar entrepreneurial environment can be particularly difficult (Scales, 2011). The working style of these women differs significantly from what is expected of an entrepreneur. Baby Boomer women are accustomed to receiving tasks from supervisors, following established procedures, and working toward clear objectives in stable environments (Wolfe, 2011).
By contrast, the entrepreneurial environment is inherently unstable and shaped by a range of dynamic factors. Baby Boomer women who start their own businesses must manage customer relationships, negotiate with suppliers, oversee business processes, and handle nearly every other element of the business — often simultaneously (Scales, 2011). Given their limited experience in starting and running a business, they frequently find these responsibilities overwhelming as they work to keep their ventures afloat.
According to Nielsen (2009), close to 25% of Baby Boomers have little or no savings or investments, and household income in this group is expected to decline over the next ten years. Individuals in this category must rely on limited pension funds, which constrains their ability or willingness to engage in entrepreneurial activities.
The retirement of the Baby Boom generation is reaching its peak, and since much of the economic and social development of the United States can be attributed to this generation's contributions, their retirement is likely to affect the nation's economic trajectory. Many of these effects will be felt in stock market performance and other asset markets (Warren, 2008).
Research indicates that more than half of retiring Baby Boomers are likely to receive income from private pensions — slightly above the average income of non-Boomers — but this income is expected to erode over time due to the lack of inflation protection in most private pension plans (Macunovich, 2000, p. 7). Many Baby Boomers have underestimated their longevity when planning for retirement, which may significantly affect their investment capacity and ability to start a business (Wheil, 2005).
The retirement of Baby Boomers is unlikely to trigger a financial market meltdown, since most will not be in a position requiring them to liquidate significant assets. The majority hold relatively few assets, and the wealthier minority is expected to sell only a small portion of their holdings. Most retirees are likely to spend their pension income gradually rather than invest it, and therefore will see little reason to sell assets (Wheil, 2005).
The postwar period and its demands drew members of this generation into economic reform, national social development, and internationally impactful improvements across multiple fields (Stallcop, 2009). The characteristics of Baby Boomers, combined with the conditions of the postwar era, helped to build most of the business and financial sectors in the United States (Longino, 2005).
Baby Boomer retirement will likely affect multiple sectors simultaneously. On a public scale, pension funds and healthcare funds will be strained. The GDP may also contract as large numbers of Baby Boomers exit the workforce. The private sector will be affected as well (Moore & Tomic, 2007). For example, retirees with disposable income and leisure time may travel more frequently, presenting opportunities for the travel industry. Others who plan to start businesses will introduce new competition across a range of fields (Cuizon, 2009).
The purpose of this study is to identify the specific problems affecting Baby Boomer women in their efforts to establish a business. The research uses qualitative approaches to gather relevant data, focusing on the demographics of women in the Baby Boomer generation in order to assess whether this population segment is economically positioned to support entrepreneurial ventures. Data will be collected through face-to-face interviews with members of this group and through focus group interviews intended to surface and discuss the perceptions of the studied population.
A self-perception survey using quantitative methods will compare the skillsets of female Baby Boomers against those identified in prior research as necessary for starting a business. The variables will be quantified and evaluated in a manner similar to the approach used by Snoke (2011) in his study on Baby Boomer financial security.
The variables of this research are represented by women in the Baby Boomer generation and the different types of retirement they have experienced. The sample population consists of females in the Baby Boomer generation in the United States. Some components of the study will be conducted online; face-to-face interviews will take place in geographic areas with higher concentrations of the studied population.
The information collected and analyzed in this study can serve as an important foundation for social change. The issues addressed by this research may produce effects at a national level — including influencing the investment behavior of Baby Boomers and the degree of financial control they exert on the broader economy. The lifestyle decisions of these individuals and their households are shaped by their retirement choices, and those choices may in turn influence the retirement planning of subsequent generations.
Because much of what this research investigates cannot be easily measured, qualitative methods are the most appropriate technique for studying the problems faced by Baby Boomer women during their retirement transition. The study also aims to generate new theories and hypotheses that can inform further research. Based on the findings, interested parties — including the studied group, corporations, and government — will be able to develop targeted strategies (Trochim, 2006).
Given that the central problem concerns the challenges Baby Boomers face when engaging in a new business venture, it is recommended that data be collected through direct contact with participants. Direct engagement enables the researcher to encourage participants to articulate their motivations for starting a business after retirement, the obstacles they encounter, and aspects of their experience they may not have previously considered. This research design also allows for a broad range of subjects to be addressed within each discussion (Trochim, 2006). However, data from open-ended interviews can be more difficult to analyze. For this reason, the project also incorporates more structured interview formats to generate information that is amenable to systematic analysis.
Because researchers bring varying perspectives to a subject, it is important to establish the epistemological orientation of the study. Postpositivism, which underpins the qualitative approach used here, takes a scientific stance toward research. It is reductionistic, logical, cause-and-effect oriented, and deterministic (Creswell, 2007).
Face-to-face interviews will also be conducted with female Baby Boomers who have attempted to start a business and failed, in order to identify the reasons for failure as they themselves perceive them.
The performance of any business is a direct product of the individual entrepreneur's ability, motivation, and behavior, as well as the challenges and opportunities she faces (Davidsson, 1989). An in-depth analysis of the major issues that affect Baby Boomer women's entrepreneurial performance must therefore accurately investigate these influences. The conceptual framework developed by the ILO (2002) — originally proposed by the UK Government's Department for International Development (DFID) and its approach to sustainable livelihoods — is employed here to analyze the factors affecting women entrepreneurs by examining the following related dimensions:
"Research methods, variables, and data collection plan"
"Systems theory, feminist theory, and ILO framework"
"Methodological boundaries and interpretive constraints"
"Economic, gender equity, and social change impact"
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