‘Be My Own Boss’ Remains the Primary Motivation for Small Business Ownership
April 13, 2021 – A year of global pandemic has not significantly changed the primary drivers of business ownership. Financial independence and controlling one’s own destiny remain the most powerful motivations for owning a business. In fact, working for oneself remains the No. 1 reason cited by entrepreneurs researching business ownership across the leading network of online franchise information directory brands.
- “Be my own boss” was the most selected response when asked “Why do you want to own your own business?”, with 89.2% of the responses in Q1 2021. That’s up from 86.7% in January-February 2020 before the pandemic lockdowns and restrictions were implemented.
- The survey allowed multiple responses, and many entrepreneurs also selected “Income Potential” as an additional reason – it ranked a strong No. 2, with 69.4% of the responses, down slightly from 71.8% in January-February 2020.
- Other motivations spring from a wider range of individual needs and preferences. “Lifestyle Rewards” is the No. 3 most common motivation with 54.8% of responses, and might include working from home, setting flexible hours or running a seasonal business. This response was almost flat with the 54.7% seen in January-February 2020. Similarly, “Side Business to Supplement Income” was No. 4 with 48.9%, allowing for part-time ownership or a less-risky path to start a new business. This is up slightly from the 48% of respondents seen in the pre-pandemic period of January-February 2020.
- Finally, “Tired of Climbing the Corporate Ladder” was No. 5 with 36.9% of the responses, affirming that many small-business and franchise owners bring a depth of professional experience to their new operations. This compares with 36% of respondents in January-February 2020.
“Controlling my own destiny” was also the top motivation cited in the March Small Business Startup Sentiment Index™, a monthly survey of individuals who have moved beyond initial research and contacted franchisors to further explore ownership. That survey asked “How does the emergence of Covid-19 affect your interest in business ownership?”, and in March 2021, 38.7% said that it “Boosts my interest in controlling my own destiny through business ownership.”
Cleary, the basic motivations for business ownership have not changed despite the most severe economic disruption since the Great Depression. The benefits of business ownership, with the attendant freedom and rewards of hard work are worth the risks, and for many, made even more profoundly clear when employment becomes uncertain.
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 Tuesday, April 13th, 2021.