Posted: Jan 12, 08 8:05am
PRELIMINARY FINDINGS FROM VIRTUAL BUSINESS/CAREER
SURVEY ECHO NATIONAL POLLS FOR BOOMER RETIREES
77 Percent of Boomers Plan to Operate Home-Based Companies in Retirement
The first numbers are rolling in from the ongoing
Virtual Business and Career Pilot Survey posted
on EONS.com, and they are right on target with
earlier polls by Yahoo.com and MassIncs
Commonwealth Magazine, as well as anecdotal
reporting from NEWSWEEKs Boomer Files.
All of these regional and national sources have
indicated that a majority of boomers between 60
and 75 percent plan to run home-based, virtual
companies of various types when they are in
retirement. (The first wave of baby boomers hit
62, the official retirement age, in 2007.) Early
data from the EONS survey are right in sync, even
a little higher: 77 percent of EONS respondents
report plans to run a virtual business from their
home in their retirement years.
Its important to note that the survey was
promoted for only two days over a mid-December
07 weekend with little explanation and with a
tool that was not beta tested properly before
being released. Since then, it has sat without
much fan fair on the EONS Building a Virtual
Company group page, which this author runs to
assist EONS members who either want to operate a
virtual company or are already doing so. This
means they operate a lean, small business that
relies on advanced technology. Also, there was no
time to add a category for part-time employees.
These factors may have skewed the data. Plus
problems with the tool and lack of awareness of
its presence mean only 170 EONS members
admittedly a small sample -- took the survey as
of Jan. 7, 2008. Even so, the consistency of
responses with other national polls on this same subject was striking.
For this reason, plans have been underway to post
an improved tool on a variety of sites
nationwide, including the authors Website at
www.a-zinternational.com and at Gen Plus+, which
is owned by career coach Wendy Spiegel (another
EONS expert who helped design the tool); on THE
FUTURE OF WORK site, and on author/expert Joel
Kotkins (The New Geography) Website. EONS has
been invited to keep the tool live, but was undecided at this writing.
Also, discussions are underway with Michael
Goodman, Director of Economic and Public Policy
Research at the University of Massachusetts
Donahue Institute, regarding development of a
scientifically-constructed study of the virtual
economy for municipalities, regions, states or
the nation to be based on the EONS pilot survey.
OK, so why all the hullabaloo about some survey numbers?
Well, for one, the boomers represent half of the
United States work force. Sen. Barack Obama, the
charismatic, young Democratic presidential
candidate may urge this country to move beyond
the boomers in his attempt to attract Gen X, Y
and other voters an understandable and even
important step, by the way but he can hardly
ignore the largest cohort on the globe. As has
been documented endlessly, whatever the boomers
do sends hiccups at the least -- and often
shockwaves -- through any sector they touch,
whether thats housing, auto industry, health care or the work force.
Also, its well known and documented that a large
percentage of the boomer population has wracked
up a huge amount of debt. Many boomers may need
to work until they drop. The fact that a number
of polls show such a high percentage of the 78
million boomers planning to work out of their
homes, or in rental offices, and do this in a
virtual fashion over the next several decades,
will undoubtedly have huge ramifications for a
variety of industries from home construction and
repair, to tech companies, Internet service
providers, business supply retailers, book
stores, Web-based services -- just about anyone serving small businesses.
Then theres the issue of services that boomers
like this author need today to operate a virtual
company, and will need in the future. To beat a
dead horse, we need affordable health care. Yes,
the IRS provides a tax deduction for a percentage
of health insurance costs for those running a
Schedule C, but we still need to ante up the
money each month. For this writer thats roughly
$540 a month or slightly more than $6,000 a year,
not counting the co-pays and visits that arent
covered by my HMO plan. All in all, Im probably
spending closer to $7,000 a year on health care.
And thats for someone without chronic disease.
My partner, age 61, is a type II diabetic and his
health care costs would be $1,000 a month or more if he was self-employed.
The next most crucial issue facing all virtual
company owners, whether they rent or operate from
a home office, is Internet connectivity and cell
phone service. As Kotkin and other digital
economy experts can tell you, cell and high-speed
Internet access are hardly ubiquitous,
particularly in low population zones where
topography makes it hard to get signals or lay
fiber optic cable. Rural areas from North Dakota
to parts of California, Tennessee to Hawaii and
western Massachusetts lack the technology
connection they need to build a company.
For example, there are parts of western
Massachusetts, particularly in Franklin County
and the Berkshires, where virtual company owners
report driving 40 minutes into a town to download
files, or to get cell service. In the Web 2.0
world the lack of broadband or cell service is
the kiss of death to any real business. In
Massachusetts, Gov. Deval Patrick is urgently
trying to address this issue, but relief is not here yet.
Then theres the fact that boomers spend a lot of
money. This is the cohort, despite many of whom
are in debt, that has the most disposable income
(besides members of the World War II generation
still alive and with large-scale assets.)
Retailers and manufacturers of all kinds of
technology take note: 30 percent of EONS
respondents (based on a sample of 114 that
answered this section) said they would be
purchasing laptop and personal computers, cell
phones or smart phones/PDAs in 2008. The
breakdown by technology was 35 percent for
laptops; 17 percent for PCs and almost 22 percent for cell phones/PDAs.
For all of these reasons and more, data on the
virtual company population, which the U.S. Census
Bureau does not yet collect, is urgently needed
to meet the avalanche of need and yes,
opportunities -- that the retiring boomers
present. Although the questions posed on the EONS
pilot survey are not scientifically designed,
they are based on standard journalistic
methodology with input from academics. And, no,
the means of gathering the data is not
scientific, either. But this information at the
very least represents the sorts of questions the
Census might gather if and when government
officials decide to take interest in the virtual
work place -- one of the fastest-growing sectors
of the U.S. work force as it fits into the self-employed category.
The pilot survey, designed by this author and
Spiegel, aims to gather information on several
cohorts: boomers employed full-time at this
writing; boomers working virtually at this
writing, and boomers either in retirement or
facing retirement at this writing. These
preliminary findings are based largely on 170
respondents, although only 114 people responded
to some sections (see below) by the Jan. 8 cut
off date when the data was issued to this author.
The following is the collective the data for all
24 questions posed to EONS members at the end of
2007 and into early 2008. Its my intent to
present this information to the media, government
officials, technology service providers,
professionals such as lawyers and accountants, as
well as manufacturers/retailers serving the small
business population, and others serving the virtual work place:
GENERAL QUESTIONS (170 respondents):
· AGE: Of 170 respondents, 50 percent were
between the ages of 49 and 55 (not surprising as
this was the largest sector on EONS.com); 26
percent were between ages 56 and 60; 17 percent
were between 61 and 65, and there were a
smattering of respondents reaching beyond the
boomer generation with the oldest age 85.
· GENDER: The majority, or 74 percent of
respondents were female and 26 percent were males.
· MARITAL STATUS: Most, roughly 60 percent, were
married for a varying number of years; 29 percent were divorced.
CURRENTLY EMPLOYED (170 respondents):
· CURRENTLY EMPLOYED: 62 percent said yes; 38 percent said no.
· UNEMPLOYED AND SEEKING EMPLOYMENT: 12 percent
reported they had been seeking employment; 19
percent said they were unemployed, but not seeking employment.
· DURATION OF THE JOB SEARCH FOR THE UNEMPLOYED:
7 percent had been looking for work for one year;
3 percent had been seeking work for between one
and two years and almost 4 percent had been
seeking a job for more than two years.
· TELEWORKER: 13 percent reported teleworking,
meaning they were fully employed and checked into
an office at least once a week.
· WORKING VIRTUALLY FOR AN EMPLOYER: Almost 10
percent reported working full-time for an
employer, but virtually from a home or satellite rental office.
· WORKING FULL-TIME BUT BUILDING A SIDE BUSINESS:
26 percent of respondents are building a side
business while maintaining a day job.
SELF-EMPLOYED (114 respondents):
· SELF-EMPLOYED: 31 percent of the respondents
were self-employed; 52 percent were not, and 17
percent said this was not applicable.
· OPERATING A HOME-BASED COMPANY VIRTUALLY:
roughly 39 percent reported operating home-based,
virtual businesses; roughly 49 percent were not,
and 13 percent said this was not applicable.
· RENT OFFICE SPACE: Of 114 respondents to this
question, only 5 percent rent space and 82
percent said they do not, while the remainder
indicated this was not applicable.
· OWN PROPERTY TO HOUSE AN OFFICE: 29 percent of
114 respondents said yes; 45 percent said no, and
the rest said this was not applicable.
· HIRE FULL OR PART-TIME EMPLOYEES TO BACK A
BUSINESS (as defined by the IRS): about 95
percent of 114 respondents said no; 5 percent said yes.
· HIRE SUBCONTRACTORS TO BACK A BUSINESS: almost
18 percent said yes; 82 percent said no.
· TECH PURCHASES IN 2008: 30 percent 112 EONS
respondents said they would be purchasing laptop
and personal computers, cell phones or smart
phones/PDAs in 2008. The breakdown by technology
was 35 percent for laptops; 17 percent for PCs
and almost 22 percent for cell phones/PDAs.
· WOULD ADD A WEB SALES (ONLINE BUSINESS) TO A
BRICKS N MORTAR COMPANY: 28 percent of 114
respondents said yes; almost 20 percent said no
and the rest were not applicable.
· BUSINESS GOALS OF VIRTUAL COMPANY OWNERS: Of
114 respondents, 30 percent said they were
lifestyle entrepreneurs, meaning they want to
generate enough revenue to pay the bills and
enjoy life; almost 40 percent said they wanted to
generate as much income as possible while not
operating a large business with employees;
roughly percent would build a major corporation,
and the rest said this did not apply.
EMPLOYMENT PLANS AFTER AGE 62 (of 114 respondents):
· PLAN TO WORK FOR CURRENT EMPLOYER AS LONG AS
POSSIBLE AFTER AGE 62: almost 33 percent said
yes; 30 percent said no, and the rest said this did not apply.
· PLAN TO LEAVE A FULL-TIME JOB TO START A
RETIREMENT BUSINESS: almost 33 percent said yes;
30 percent said no, and the rest said this did not apply to them.
· PLAN TO OPERATE A HOME-BASED BUSINESS IN
RETIREMENT: 77 percent said yes; 12 percent said
no, and the rest said this did no apply.
· PLAN TO RENT OFFICE SPACE FOR A RETIRMENT
BUSINESS: about 79 percent said no; 6 percent
said yes, and the rest answered not applicable.
· WOULD PURCHASE PROPERTY TO HOUSE AN OFFICE: 20
percent said yes; 73 percent said no, and 73 percent said this did not apply.
· BUSINESS GOALS FOR A RETIREMENT OPERATION: 41
percent said they wanted to earn enough to
support their lifestyle needs; 38 percent wanted
to grow in revenue, but not in employees; 4
percent would build a major business in
retirement, and the rest said this did not apply.
NOTE: For more information contact Amy Zuckerman
at az@a-zinternational.com or visit www.a-zinternational.com
