Consulting, Etsy, YouTube, bookkeeping, tutoring, pet sitting, and real estate investing are leading the way.

Retirement no longer means stepping back from work entirely. Across the country, adults over 60 are launching small businesses at a pace that is reshaping what the second half of life looks like. Some are replacing lost income. Others are chasing a passion they set aside for decades. Many simply want purpose, structure, and a reason to keep learning. Whatever the motivation, the trend is real and it is growing.

A Growing Wave of Later-Life Entrepreneurs

The numbers tell a clear story. According to a Forbes analysis of Census Bureau data, more than 5.9 million new businesses were formed in the United States over the past year, an 8 percent increase over the prior year, with 2026 applications running well ahead of the same period a year earlier.

Older adults make up a significant share of that surge. Guidant Financial’s 2026 Small Business Trends survey indicates that Baby Boomers represent roughly 32 percent of small business owners, and 18.2 percent of owners across all age groups cited legacy building, not just income, as a motivation for starting a business.

This is not a brand new phenomenon either. Data from the Ewing Marion Kauffman Foundation, cited by Kiplinger, suggests that adults ages 55 to 64 accounted for 26 percent of all new entrepreneurs in a recent year, up from just 15 percent in 1996, showing a steady climb in later-life business ownership over time.

The trend has a name in entrepreneurship circles. AARP refers to this group as “encore entrepreneurs” and reports that Americans 50 and older not only launch businesses at a high rate but also have higher long-term survival rates once those businesses are established, according to David Lerner Associates’ summary of AARP research.

Interest in this path is widespread. AARP and the Small Business Administration note that one in four adults between the ages of 44 and 70 is interested in becoming an entrepreneur, and 63 percent of Americans say they plan to work in some capacity during retirement.

Why Adults Over 60 Are Making the Leap

A few common threads show up again and again in the research and in the businesses older adults are actually building.

• Decades of experience translate directly into credibility, something younger entrepreneurs often have to work years to build.
• Lower overhead options, such as home-based or online businesses, reduce financial risk at a stage of life when protecting savings matters most.
• Flexible schedules allow business owners to work around health needs, caregiving responsibilities, or simply a desire to travel and spend time with family.
• Technology, including AI tools and easy-to-use platforms, has lowered the barrier to entry for skills that once required a large staff or a storefront.

Popular Paths: Consulting, Etsy, YouTube, and More

Consulting

For professionals who spent a career building expertise in a specific field, consulting is often the most natural next step. Consulting businesses built around decades of professional experience are one of the most common paths for encore entrepreneurs, according to David Lerner Associates, since this model allows retirees to work fewer hours, limit overhead, and choose projects that match what they already know best.

Etsy and Craft-Based Businesses

Selling handmade goods, vintage items, or digital downloads on platforms like Etsy appeals to adults who want a creative outlet with manageable startup costs. Financial advisors quoted in Kiplinger point out that selling on platforms like Etsy or eBay carries minimal financial risk compared to opening a traditional storefront, making it a common entry point for risk-averse retirees testing a new venture.

YouTube and Content Creation

Older adults are increasingly turning to YouTube and other content platforms to share expertise, hobbies, or life experience with an audience. A retired teacher might build a channel around tutoring strategies. A former nurse might create content on caregiving. These channels can grow into consulting leads, sponsorships, or product sales, often starting as a low-cost side project before becoming a full business.

Bookkeeping and Financial Services

Bookkeeping is a favorite second-act business for adults with a background in finance, administration, or business operations. It requires modest startup costs, can be run entirely from home, and offers recurring monthly income once a small client base is established. Certification programs designed for career changers have made it easier than ever to enter the field later in life.

Tutoring

Tutoring draws on the exact skill set many adults over 60 already have: patience, deep subject knowledge, and the ability to explain complex ideas clearly. Whether working with students on academic subjects or adults learning new skills like technology or a second language, tutoring offers flexible hours and strong demand in most communities.

Pet Sitting and Pet Care Services

Pet sitting has become one of the most accessible small businesses for older adults, requiring little startup capital and offering flexible hours. Barnum Financial Group notes that both the pet industry and senior care markets are booming, creating strong demand for trustworthy, compassionate pet sitting and walking services, particularly from clients who prefer working with a mature, reliable provider.

Real Estate Investing

Real estate investing appeals to adults over 60 who want their money working for them without taking on a physically demanding second career. Rental properties, house flipping, or partnering with a licensed real estate professional on distressed or foreclosure properties can generate income and long-term appreciation. Because real estate involves financing, contracts, and local regulations, most successful later-life investors work closely with a licensed real estate agent, a lender, and, when appropriate, an attorney before committing capital.

A Realistic Example

Karen is 66 years old and spent thirty years working in an administrative position before retiring. Rather than stop working entirely, she started a bookkeeping business serving small medical practices, using her industry knowledge to fill a gap she understood well. Within a year she had four regular clients and was working twenty hours a week from home, enough to supplement her retirement income without the physical demands of her previous career. She structured her business as a sole proprietorship, kept her startup costs low by using cloud-based accounting software, and consulted a tax professional before filing her first year of business taxes.

Getting Started the Right Way

Adults considering a business after 60 benefit most from starting small, keeping overhead low, and researching licensing or registration requirements specific to their state and industry before taking on clients or investing capital. Free resources are widely available, including SBA district offices, SCORE mentoring, and AARP’s Encore Entrepreneur programs, which connect adults 50 and older with counseling and training designed specifically for later-life business owners.

Final Thoughts

Whether the goal is extra income, a creative outlet, or simply staying engaged, adults over 60 are proving that a meaningful second act in business is not only possible but increasingly common. With experience, flexibility, and a growing menu of low-cost paths to entrepreneurship, this is one of the most encouraging trends in today’s economy.

I am not an attorney or financial advisor. This article is for educational purposes only and should not be considered legal or financial advice. Please consult a qualified attorney or financial advisor regarding your specific situation.

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