The Primary Motivations for Franchise Ownership are Resilient
January 20, 2022 — Despite the disruptions to normal human behavior due to the global pandemic, the control over one’s destiny and financial independence continue to be the most powerful motivations for owning a business in America. In a very large sample over multiple years, working for oneself 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 motivator to increase since the fourth quarter of 2019, before the pandemic began.
- “Be my own boss” was the most selected response when asked “Why do you want to own your own business?”, with 89.1% of the responses in Q4 2021, growing 0.7% more than the survey two years ago.
- The survey allowed multiple responses, and many entrepreneurs also selected “Income Potential” as an additional reason – it ranks a strong No. 2, with 69.4% of the responses. Compared with fall 2019, this factor decreased by 2.9% – the largest drop among motivations.
- “Lifestyle Rewards” is the No. 3 most common motivation with 53.7% of responses, dropping 1.6% from the earlier survey, and 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” was No. 4 with 49.2%, allowing for shared or part-time ownership or a less-risky path to start a new business.
- Finally, “Tired of Climbing the Corporate Ladder” was No. 5 with 36.8% of the responses, affirming that many small-business and franchise owners bring a depth of professional experience to their new operations.
“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 November 2021, 39.1% 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 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 Thursday, January 20th, 2022.