The Top Prospect Motivations for Franchise Ownership in Q1 2023
April 19, 2023 – Aspiring business owners are leaving worries about the pandemic behind, and most see business conditions in the next three months about the same. In mid-March, news of bank failures roiled the financial markets, and entrepreneurs expected loans to play a lesser role in their startups.
But control over one’s destiny continues to propel entrepreneurs towards owning their own business in America.
Consistent with our large sample of interested franchise buyers over the past three years, “being one’s own boss” remains the primary motivator cited by entrepreneurs researching franchise ownership across the FranchiseVentures, 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 Q1 2023, decreasing slightly from the record 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 Q1 2023.
- “Lifestyle Rewards” is the No. 3 most common motivation, cited by 49.8% of respondents. 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, and 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 57.4% were leaving full-time jobs in March 2023.
The fundamental drivers for business ownership have not changed despite the Covid pandemic which was certainly 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, April 19th, 2023.