Boomer or Bust? Europe's Older Entrepreneurs Cling to Power.

Baby-boomer entrepreneurs who pioneered the modern European economy are determined to hold onto their clout, reports the Wall Street Journal . Researchers at the Bank of Italy say their behavior includes avoidance of risk compared to younger peers, as well as aversion to outside investors, non-family managers, and nonbank financing to underwrite growth. However, if these entrepreneurs — especially older ones — do pursue change, Europe's small-business sector could prosper. Bocconi University Professor Guido Corbetta says 25 percent of those who lead Italian family-owned businesses are older than 70 versus 17 percent 10 years ago. Meanwhile, the number of company heads under 50 years old is in decline — a trend repeated across the advanced EU economies. Baby boomers shunning outside investment and mergers typically keep their businesses smaller, but they are less capable of innovating and competing in global trade. Without new management, studies have shown aging entrepreneurs are exposed to fewer fresh perspectives, including ways to secure financing beyond traditional bank loans.