The Primary Motivations for Franchise Ownership Are Persistent
July 6, 2022 – Despite pandemic , war, and economic headwinds, the control over one’s destiny continues to propel entrepreneurs towards owning a business in America. In a very large sample over multiple years, “being one’s own boss” remains the main motivator cited by entrepreneurs researching business ownership across FranchiseVentures, the leading network of online franchise lead generation brands. Further, this was the only one of five motivations cited more often than this time in 2021, as per the chart below.
- “Be my own boss” was the most selected response when asked “Why do you want to own your own business?”, with 89.5% of the respondents in Q2 2022, increasing slightly by 0.1% more than the survey last year.
- The survey allowed for multiple responses, and many entrepreneurs also selected “Income Potential” as an additional reason – it ranks a strong No. 2, with 64.4% of the responses. Compared with last year, however, this factor decreased by 6.3%.
- “Lifestyle Rewards” is the No. 3 most common motivation cited by 47.4% of respondents, though dropping 8% from the survey last year . This driver includes the benefits of working from home, setting flexible hours or running a seasonal business. The pandemic gave individuals a taste of greater work flexibility they now crave.
- “Side Business to Supplement Income” suggests shared or part-time ownership or a less-risky path to start a new business while retaining other income streams. This ranked fourth among drivers, cited by 46.6% of respondents,
- Finally, “Tired of Climbing the Corporate Ladder” was fifth, cited by 33% of the respondents, affirming that many aspiring small-business and franchise owners bring a depth of professional experience to their new ventures.
“Controlling my own destiny” is consistently the top motivation cited in the 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 May 2022, 48.1% said that it “boosts my interest in controlling my own destiny through business ownership.”
The fundamental drivers for business ownership have not changed despite the pandemic – the most significant societal and economic disruption since the Great Depression. The benefits of business ownership, including the control of one’s destiny and the perceived returns from the hard work of building a business are worth the risks, and for many, the pandemic became the impetus for taking the first steps.
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 Wednesday, July 6th, 2022.