Aspiring Business Owners Much More Likely to Launch Startups than Three Months Ago

By: Michael Alston for Franchise Insights

June 4, 2025 – Entrepreneurs seeking business ownership are more inclined to take action today  than they were just a month ago. In the May 2025 Small Business Startup Sentiment Index™ survey, 75.9% of respondents said they are “more or much more likely to launch their startups than three months ago,” compared with 57.1% for the same measure in the prior month. 

They are, however, pushing their timeframes for startup back a few months on average. Of this month’s respondents, 44.4% of entrepreneurs planned their startups within the next three months, down from 64.3% in the April survey. Still, 68.5% plan their launches for within the next six months.  

Surveys in the last week of May 2025 showed 64.8% of persons exploring ownership agree or strongly agreed that “now is a good time for startup”, following the 84.5% record set in March.  In this month’s survey, 81.5% of respondents see conditions for business and franchise startups “the same or better in three months.” 

In late May 2025, 75.9% of respondents said they are more or much more likely to launch their startups than three months ago.

This trend in business startup sentiment correlates with the surge in business applications we have noted in recent months. These two indicators are directionally in sync with the partial rebound in consumer sentiment reported by the Conference Board in May. 

81.5% believe business conditions will be “the same or better” three months out.

Additional highlights:

• Future business conditions: Despite the uncertainty of tariff effects and policy changes ahead, 81.5% of respondents see conditions no worse – staying the same or getting better – in three months. On the other hand, over one fourth of respondents (18.5%) see conditions getting “worse or much worse” in three months.
• Access to funding: 66.7% of entrepreneurs were concerned about finding adequate funding (the top concern), and those who see funding “harder or much harder” to obtain in the next three months dipped to 40.7% of respondents. After eight months in third place among concerns through April, “political changes” tied with “regulatory changes” for third in May.
• Current Employment: Of these survey  respondents, 53.7% are currently employed full-time, below the record 61.7%for this survey in June 2024. Another 14.8% of respondents were current business owners seeking an additional or replacement business. Freelancers and consultants were 16.7%, part-timers were 14.8%, and less than 1% were active military..
• Age Cohorts: Gen-X remains the largest share, at 48.0% of respondents, down from the record 63.9% seen in June 2024. Boomers had a strong showing at 26%, in a tie at 26% for the Gen-Y or the Millennial age cohort. Gen-Z were less than 1% of respondents, and below the 3.9% average for 2024. Less than 1% were from the “Silent Generation”, born before 1946

The FranchiseInsights.com Small Business Startup Sentiment Index™ (SSI) is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the Franchise Ventures lead generation platform. This survey was conducted May 23-31, 2025.

Franchise Ventures is the leading franchise lead-generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.

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Published on Tuesday, June 3rd, 2025.