According to the Small Business Administration (SBA), over 5 millions Americans – aged 55 or older – are self-employed or running their own businesses. Between 2000 and 2007, the number of self-employed people between the ages 55 and 64 surged 52%.

So what is the reason for these late-career entrepreneurs? Deborah Russell, director of work force issues at AARP, cites the economic downturn has impacted all across the job spectrum, and the average number of weeks of unemployment for workers age 55 or older is 36 weeks.

“A lot of these people have a lifetime of knowledge, skills and networking they’ve amassed, and it’s very easy to use all of that to start a business,” she said. However, she went on to state, “…we caution people not to invest their retirement savings into risky start-ups because if you lose your retirement money, you can end up worse than where you started.”

Other experts concur. “The first piece of advice is don’t buy the mythology — all you need is a new idea, that you wander out there, you run your own B.& B., you start your nonprofit and all the birds are singing,” says Marc Freedman, founder of San Francisco-based Civic Ventures. “That’s what you’d think if you pick up some of these money magazines. This is a pretty daunting decision, and it’s also a risky one. People should start with some realism about what it takes to do this. It’s important to realize that this is a trajectory that can last 10, 15, 20 years. That means take some time to prepare, whether it means going back to school or doing an apprenticeship. There’s no need to succeed at the very first attempt at this. There’s room for readjustment and regrouping.”

So how can you successfully make the transition to self-employment? A SBA Web site specifically set up to offer advice and expertise to late-career entrepreneurs state that age 50 to 70 is “the perfect time to leverage experience, passions, hobbies and resources to launch or purchase a small business.”

The federal government has programs specifically designed to meet the needs of older entrepreneurs. In addition, while unemployment benefits are traditionally reserved for laid-off workers who are actively pursuing employments, 10 states have extended these benefits to include individuals who are setting up their own businesses.

However, the fact remains that while creating and running your own business can be very rewarding, it is also enormously stressful. Experts warn that many wanna-be entrepreneurs stumble or fail because they lack the skills to market themselves or are not fluent in current technologies.

“People have to keep up on their skills, keep up with the latest,” one expert cautions. “You need to be sure you are really a valuable asset. The entrepreneur of today has to be motivated not just to know their skills and the job, but to be constantly challenging themselves. Every day they have to be reconfirming to their clients, ‘I’m good, I’m on top of things. Age is not a factor. Here I am doing it.’ ”

Smart entrepreneurs test the waters and take counsel from trusted sources. Most experts agree that the best course is to start slow: don’t make any large cash commitments, be flexible and receptive to customer needs, and take advantage of courses and programs in everything from accounting and business administration to new technologies and the use of social media.

Says Marc Freedmans of Civic Ventures, “There’s a growing number of people over 50 who are entrepreneurs. That network can be a real source of support and knowledge. That’s no reason to go it alone.”