Baby boomers are far more likely to use their own savings to start businesses than to take out traditional bank loans.
Researchers at Hartford Financial Services Group Inc., Hartford, have published that finding in a report based on a May survey of 505 business owners ages 45 to 60.
About 75% of the survey participants said they used their personal savings to start their businesses, compared with 20% who used credit cards and 16% who used bank financing, the researchers report.
About 55% of the boomers said their financial picture improved after they started their own businesses, while 25% said their financial situation got worse, the researchers say.