September Startup Sentiment Index™ Shows Dramatic Increase in Startups Planned 3 Months Out
Pending Election Puts Immediate Startup Plans on Hold
In a remarkable turnabout, future business owners planning to start “this month” plummeted, while startups planned “3 months out” reached the highest ever recorded in responses collected September 23-30 2020, for the FranchiseInsights.com Small Business Startup Sentiment Index™.
In August we reported the encouraging development that over 36% of August respondents indicated they are “more likely to start a business now than three months ago,” and the percentage of respondents that were “less or much less likely to start a business than three months ago” decreased to 8%, the lowest reading in 2020. These notable improvements in buyer optimism might suggest that concerns about the pandemic have been recently overshadowed by concerns about the near-term economy and the upcoming election.
Concerns Among Entrepreneurs about the Upcoming Election Soar
While concerns over the “economic climate” at 44.3% of respondents overshadows most other factors cited in September, 22.1% of prospective business buyers cited “political changes” as a key factor, increasing from 8.8% of respondents in January to 22.1% in September, a 251% increase in eight months, in perhaps the most extraordinary and contentious election in our lifetimes.
The Small Business Startup Sentiment Index™ is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the digital assets of FranchiseVentures.
FranchiseVentures is the leading demand– and 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 Thursday, October 15th, 2020.