Over 58% of Aspiring Business Owners Say ‘Now is a Good Time’ to Launch Their Startups

By: Michael Alston for Franchise Insights

February 8, 2023 – As of January 2023, 76.6% of aspiring business owners are planning to launch their businesses within the next 12 months. And now, 58.4% of aspiring business owners either agree or strongly agree that “now is a good time to start a business”, consistent with 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 20.8% see business conditions deteriorating in three months, 79.2% still see conditions for business startups “the same or better in three months.” In January 2023, 41.6% of entrepreneurs planned their startups within the next three months, down from August’s recent high of 69.2%.

The most recent Startup Sentiment Index™ survey was conducted January 26-31, 2023. 

Additional highlights:

• Future business conditions: While a plurality of respondents see conditions “about the same” in three months for startups (55.8%), the declining trend of those seeing future conditions better (now 23.4%) and increase in those seeing future conditions worse (20.8%) 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 74%, though those seeing funding “harder or much harder” to obtain in the next three months rising to 46.8%.
• Demographics: 46.9% of respondents were currently employed full-time, and 19.4% were current business owners seeking an additional business. The Gen-X cohort dominated with 46.1% of respondents, while Baby Boomers (19.7%) stayed in third place, as Millennials continued their number two position at 30.3% of respondents.

Download a copy of the January 2023 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 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, February 8th, 2023.