Entrepreneurship not just for the young: Older adults in Peru excel with business frameworks

Amid Peru’s rapidly aging population, with over 4.5 million seniors expected by the end of 2024, elderly citizens remain socially and economically marginalized. The Pensión 65 program, launched in 2011 to alleviate poverty through bi-monthly cash transfers and promote “productive knowledge,” has primarily functioned as a welfare mechanism. However, it has largely overlooked the entrepreneurial potential embedded in this demographic. Many older adults possess traits such as perseverance, initiative, and creativity, yet institutional frameworks seldom leverage these capabilities.

In the highland district of Llaylla, Peru, a quiet revolution is unfolding among the country’s oldest citizens. Once viewed solely as dependents of the state, senior adults enrolled in the national welfare program Pensión 65 are emerging as unlikely entrepreneurs. Backed by new research, these older adults are proving that age is not a barrier to innovation, when the right tools are provided.

A groundbreaking study published in World, titled “The Interplay Between Business Models and Entrepreneurial Capabilities in Aging Populations: Insights from Emerging Economies”, reveals a strong link between business model education and the entrepreneurial empowerment of elderly welfare recipients. Conducted in one of Peru’s most underserved rural regions, the research provides statistical proof that structured business training can unlock latent economic potential among older adults, advancing both dignity and development.

Can aging populations become drivers of economic inclusion?

Amid Peru’s rapidly aging population, with over 4.5 million seniors expected by the end of 2024, elderly citizens remain socially and economically marginalized. The Pensión 65 program, launched in 2011 to alleviate poverty through bi-monthly cash transfers and promote “productive knowledge,” has primarily functioned as a welfare mechanism. However, it has largely overlooked the entrepreneurial potential embedded in this demographic. Many older adults possess traits such as perseverance, initiative, and creativity, yet institutional frameworks seldom leverage these capabilities.

This study bridges that gap. By applying the Business Model Canvas (BMC) framework across 146 elderly Pensión 65 participants, researchers assessed how components like customer segmentation, value proposition, and revenue streams intersect with key entrepreneurial traits, including teamwork, self-confidence, and adaptability. The study finds a strong positive correlation (Spearman’s Rho r = 0.755, p < 0.001) between a grasp of business model elements and entrepreneurial capacity. Participants who demonstrated a deeper understanding of business structures also showed higher levels of creativity, initiative, and confidence, challenging long-standing stereotypes that aging equates to economic inactivity.

Which business elements fuel entrepreneurial growth among the elderly?

The research thoroughly evaluated the connection between each of the nine BMC components and five entrepreneurial capacities. Strong correlations were observed across all dimensions:

• Initiative and Value Proposition: Seniors who displayed proactive behavior were better at identifying unique selling points and aligning them with customer needs.
• Teamwork and Key Partnerships: Collaborative skill sets significantly influenced the ability to build strategic alliances and optimize operational activities.
• Perseverance and Revenue Streams: A high commitment to goal achievement was strongly tied to understanding cash flow dynamics and sustaining income-generating ventures.

While most participants scored at "fair" levels across both entrepreneurial and business model metrics, notable gaps emerged. Technical aspects like cost structure, customer relationships, and key partnerships remained areas of low competency. For example, only 13.7% of participants demonstrated a "good" understanding of service channels and customer relationships, and over 38% scored poorly in managing cost structures. This indicates that while entrepreneurial spirit is present, execution is hindered by a lack of structured training and institutional mentorship.

The study also highlights the success stories from the national competition “Productores Ancestrales,” showcasing how elderly Peruvians thrive in sectors like agriculture, handicrafts, and processed foods when given proper support. However, access to such platforms is not uniform. Unlike neighboring districts like Mazamari, where partnerships with institutions such as Coop Business School have bolstered enterprise development, Llaylla lacks consistent technical and financial backing.

What are the policy implications and the road ahead?

The researchers argue for a paradigm shift in welfare policy, proposing that aging populations be repositioned from aid recipients to productive entrepreneurs. Their recommendations include the integration of business model training into the existing Pensión 65 curriculum. Modules on cost management, value creation, and market segmentation could enhance the capacity of older adults to build and sustain microenterprises.

The study also calls for expanding partnerships with academic institutions, NGOs, and local governments to provide continuous mentoring and technical support. Gender-focused programs, digital literacy training, and inclusive infrastructure development are highlighted as crucial steps for future interventions.