Despite Worsening Conditions, Record Share of Entrepreneurs Foresee Their Startups Within 2023
By: Michael Alston for Franchise Insights
January 4, 2023— A record high percentage (91.4%) of aspiring business owners are planning to launch their businesses within the next 12 months. Now 59.16% of aspiring business owners either agree or strongly agree that “now is a good time to start a business”, recovering from the prior month, but down from the high of 73.5% as recently as February, 2022.
FranchiseInsights.com compiles monthly the Small Business Startup Sentiment Index™ (SSI) of individuals who have recently inquired about businesses for sale.
While 28% see business conditions deteriorating in three months, 72% still see conditions for business startups “the same or better in three months.” In December, 51.6% of entrepreneurs planned their startups within the next three months, closer to August’s recent high of 69.2%.
The most recent Startup Sentiment Index™ survey was conducted December 21-31, 2022.
- Future business conditions: While a plurality of respondents see conditions “about the same” in three months for startups (54.8%), the declining trend of those seeing future conditions better (now 17.2%) and increase in those seeing future conditions worse (28%) mirrors lower consumer confidence and portends possible recession in the U.S.
- Access to funding: The percentage of entrepreneurs concerned about finding adequate funding stands at 66.7%, though those seeing funding “harder or much harder” to obtain in the next three months rising to 46.2%.
- Demographics: 52.7% of respondents were currently employed full-time, and 19.4% were current business owners seeking an additional business. The Gen-X cohor dominated with 50.5% of respondents, while Baby Boomers (20%) fell back to third place, as Millennials regained their number two position at 29.5% of respondents.
Download a copy of the December 2022 FranchiseInsights.com SSI report here. See excerpts from prior SSI™ surveys and subscribe to receive the Small Business Startup Sentiment Index™ monthly report when it is released.
The Small Business Startup Sentiment Index™ is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the digital assets of FranchiseVentures.
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, January 4th, 2023.