Self-Employment in Later Life: How Future Time Perspective and Social Support Influence Self-Employment Interest

Abstract

For older workers, self-employment is an important alternative to waged employment. Drawing on social learning theory and social cognitive career theory we examine how attitudes toward one’s own aging, future time perspective (captured by perceived time left to live) and perceived support from referent individuals predict self-efficacy for entrepreneurship and outcome expectations, influencing self-employment interest. Findings from a sample of professional association members ( n = 174, mean age 52.5 years), revealed that an open-ended time perspective relates positively to entrepreneurial self-efficacy, while social support relates positively to outcome expectations. Consistent with social cognitive career theory, entrepreneurial self-efficacy mediated the relationship between future time perspective and interest in self-employment, and outcome expectations mediated the relationship between social support and interest in self-employment. This study extends current career and entrepreneurship theory in several ways. First, the inclusion of age-related psychosocial and sociocultural factors in the study model shed light on the intersection between older age, the contextual environment and development of self-employment interest. Second, the findings support earlier arguments that older entrepreneurship is a social process whereby the social context in which people work and live influences their interest in entrepreneurship, and that entrepreneurial behavior among older people needs to be supported to occur. Finally, the findings suggest the utility of social cognitive career theory in informing the development of self-employment interest in the late career stage. We discuss implications for the career and entrepreneurship literatures as well as practitioners involved in late-career counseling or seeking to promote entrepreneurship for older people.

Workplace Situation and Well-Being of Ecuadorian Self-Employed

“…Social support is decisive in an occupation in which cooperative work occupies a prominent role. Caines et al [162] and Casey [163] points out that in Japan, many older workers make the transition to self-employment with the support and approval of their organizations.…”

Entrepreneurship and self-employment for mature-aged people

“…An individual’s perception of the level of skills acquired in paid employment – transferrable to entrepreneurship – is found to influence entrepreneurial self-efficacy, further suggesting that organisations play a critical role in contributing to senior entrepreneurship through their role in building confidence and capability in an aging workforce and providing them with an educational foundation for easing and encouraging the transition from organisational to self-employment (Gielnik et al., 2018). Research finds that work environments influence entrepreneurial intention, and that support is required to foster entrepreneurial intentionality throughout one’s working lifespan (Caines et al., 2019).…”

“…Research has also considered the distinguishing characteristics of senior entrepreneurs in comparison to their younger entrepreneurial peers (Caines et al., 2019; Maritz & Eager, 2017). Findings show enhanced capability of senior entrepreneurs for starting and managing a business (Maritz et al., 2015).…”

Older workers: Past, present and future

“…There has been growing attention to how older people view their future and the impact this has on current behaviour and future planning (e.g. Caines et al, 2019; Carstensen et al, 2003; Griffin et al, 2012; Hesketh et al, 2014). Perceptions of whether or not one will maintain good fit at work or how well one is likely to fit with the demands of the retirement environment could prompt planning behaviour.…”

“…Consequently, there is an opportunity to study entrepreneurial motivation pre-venture, when interest and intentions are being formed. Researchers could utilise other constructs of age that are distinct from chronological age – that is, life span theory (see Caines et al, 2019; Gielnik et al, 2018) to explain and predict older entrepreneurship.…”