The Primary Motivations for Franchise Ownership in Q4 2022
By: Michael Alston for Franchise Insights
December 28, 2022 – Headlines about war, surging inflation and interest rates, and imminent economic slowdown were no match for the entrepreneurial instincts of Americans in the final months of 2022. The control over one’s destiny continues to propel entrepreneurs towards owning a business in America.
Consistent with a very large sample of interested franchise buyers over three years, “being one’s own boss” remains the primary motivator cited by entrepreneurs researching franchise ownership across FranchiseVentures, the leading network of online franchise lead generation brands.
- “Be my own boss” was the most selected response when asked “Why do you want to own your own business?”, with 87.4% of the respondents in Q4 2022, decreasing slightly from the relative high of 89.1% in Q4 2021.
- The survey allowed for multiple responses, and many entrepreneurs also selected “Income Potential” as an additional reason – it ranks a strong No. 2, with 65.9% of the responses in Q4, comparable to the 69.4% seen in the same period in 2021.
- “Lifestyle Rewards” is the No. 3 most common motivation, cited by 49.8% of respondents, though dropping from 53.7% from a year ago. 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 seek with the confidence that remote work can be productive and help to achieve better work-life balance.
- “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 46.9% of respondents,
- Finally, “Tired of Climbing the Corporate Ladder” was fifth, cited by 33.6% of the respondents, affirming that many aspiring small-business and franchise owners bring a depth of professional experience to their new ventures. In fact, a recent high of 58.1% were leaving full-time jobs in November 2022.
“Controlling my own destiny” is consistently a 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 2022, 38.4% said that it “boosts my interest in controlling my own destiny through business ownership.”
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, December 28th, 2022.