May Startup Sentiment Index™ Shows Over 74% of Aspiring Business Owners Expect to Start Up Within The Next 6 Months
June 2, 2021 – Entrepreneurs who agree or strongly agree that “now is a good time to start a business” reached 67% in May, up from April’s reading at 65.4% of respondents, and the second highest in eleven months. 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 May 20-27, 2021, as U.S. adult vaccination rates approached 63% and states relaxed business and travel restrictions as the Memorial Day holiday weekend approached.
- Future business conditions: Respondents see further improvement ahead, with 51.4% of respondents believing that in three months, business conditions will be “better” or “much better” than now.
- Access to funding: The percentage of entrepreneurs concerned over acquiring adequate funding was essentially flat, with those seeing funding “harder or much harder” to obtain at 34.7% in May compared with 34.8% in April 2021. The “stock market” and “tax law changes” ticked up in May.
- Demographics: 56.1% of respondents are currently employed full-time (highest since March 2020), and 19.3% are current business owners. Combined in May, 75.4% of prospects were either fully employed or seeking a second business. Gen-X (47.1%) and Gen-Y (31.6%) are the largest age cohorts, while “Baby Boomers” follow at 18.4%.
The Small Business Startup Sentiment Index™ is derived from a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the digital assets of FranchiseVentures, and measures business-buyer sentiment on more than a dozen factors.
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, June 2nd, 2021.