Franchise Prospects Still Optimistic, But Spooked About Availability of Funding

By: Michael Alston for Franchise Insights

November 4, 2026 – After a run of declining startup sentiment in the second quarter of 2026, October saw the fourth month of strong optimism as 62.5% of persons exploring franchise ownership agree or strongly agree that “now is a good time for startup”, similar to the preceding three months.

This jump in optimism about business startup conditions comes as consumer confidence rose back to June levels in October in the Conference Board survey. The University of Michigan survey showed confidence was “steady” compared with September results.

Accordingly, 85.7% of this month’s respondents say they are ‘more or much more’ likely to start a business now than three months ago. So for reasons related to their own personal situations and calendars, they are more likely to move forward now than they were before summer began.

With respect to future conditions, 81.3% of respondents to the monthly sentiment survey see business conditions “about the same” in three months, with another 18.9% seeing them “better” or “much better” in three months.

In October 2026, 87.5% of prospects saw ‘funding or access to credit’ as a major factor in their startup, just below the 87.6% pandemic record.

Franchise development teams who have information on financing options or incentives will have an advantage in pursuit of today’s prospects. Financing has always been the top concern in almost seven years of surveys, but something about political, tax policy changes and/or credit availability is driving today’s heightened sensitivity.

When asked about timing, 53.2% of respondents planned their startups within the next three months, and 72.3% expected their launches within the next six months. The percentage of entrepreneurs planning their startups at some time within the next twelve months was 78.7%.

Additional Survey highlights:

Future business conditions: Despite war headlines and spiking oil prices, 81.3% of respondents see conditions no worse – staying the same or getting better – three months out. Accordingly, only 18.8% of respondents are worried that conditions will be “worse or much worse” in three months.
Access to funding: A near record 87.5% of entrepreneurs were concerned about finding adequate funding (consistently the top concern), just a notch below the previous record 87.6% seen in April 2021 during the peak of the pandemic. Those who see funding “harder or much harder” to obtain in the next three months were 37.5% of the total. “Economic climate” was the second most common concern at 63% of respondents, breaking the 55.6% record at the outset of the pandemic in March 2020. “Tax law changes” rose to third place as the mid-term elections loomed.
Current Employment: Of these respondents, 43.8% were currently employed full-time, up from last month’s 35.3%. Another 12.5% of respondents were current business owners seeking an additional or replacement business. Freelancers and consultants were 37.5%, while part-timers were at 6.3%, and less than 1% were active military.
Age Cohorts: Gen-X led at 50% of respondents, with Baby Boomers, Gen-Z and Gen-Y (Millennials) in a dead heat at about 14.3%. Millennials are the largest cohort in the adult population, but years away from the peak age for business ownership. The “Silent Generation” had no respondents.

With the mid-term elections looming, ‘tax law changes’ rose to the third biggest concern of entrepreneurs planning startups.

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 October 23-31, 2026.

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, November 3rd, 2026.