Franchise Startups Planned for Next Twelve Months Rise to Year High

By: Michael Alston for Franchise Insights

January 3, 2024 – In the latest startup sentiment data, 84.5% of aspiring franchisees plan their startups in the next twelve months, the highest percentage seen since December of 2023.

Almost 59% of survey respondents either agree or strongly agree that “now is a good time to start a business,” off the blistering 67.2% seen in November. Now 78.4% of respondents see conditions for business startups “the same or better in three months.” In December 2023, just over half (50.9%) of entrepreneurs planned their startups within the next three months, and 73.3% within the next six months. And 63.9% of entrepreneurs surveyed say they are “more or much more likely to launch their startups than three months ago.”

FranchiseInsights.com compiles monthly the Small Business Startup Sentiment Index™ (SSI) of individuals who have recently inquired about businesses for sale. The most recent Startup Sentiment Index™ survey was conducted December 21-31, 2023. 

Over 84% of aspiring entrepreneurs plan their startups within the next 12 months.

Additional highlights:

• Future business conditions: Reversing a multi-year downtrend in sentiment about future business conditions, 78.4% of respondents see conditions no worse – staying the same or getting better in three months– with 47.4% seeing conditions “about the same.”
• Access to funding: The percentage of entrepreneurs concerned about finding  adequate funding was 67%, and those who see funding “harder or much harder” to obtain in the next three months were 32% of respondents.
• Demographics: 40.3% of respondents were currently employed full-time, and 14.9% were current business owners seeking an additional or replacement business. The Gen-X cohort dominated with 47% of respondents. Millennials followed at 28%, while Baby Boomers were 21% of respondents. This month, Gen-Z was 3% of respondents, in line with the 3.29% share of all respondents seen in 2022.

Download a copy of the latest FranchiseInsights.com Small Business Startup Sentiment 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 FranchiseVentures lead generation platform.

FranchiseVentures is the leading franchise 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 3rd, 2024.