Over 77 Percent of Aspiring Startups See Conditions In Three Months the Same or Better Than Now
By: Michael Alston for Franchise Insights
May 3, 2023 — In April 2023, 63% of entrepreneurs surveyed say they are “more likely to launch their startups than three months ago.” Just over half (50.4%) of survey respondents either agree or strongly agree that “now is a good time to start a business”, down slightly from last month, but significantly down from the record high of 76.9% in June 2021.
Now 77.3% still see conditions for business startups “the same or better in three months.” In April 2023, 71.4% of entrepreneurs planned their startups within the next six months, up from 66.7% in the March 2023 survey.
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 April 20-30, 2023.
68.1% of respondents were either employed full-time or current business owners
- Future business conditions: While a plurality of respondents see conditions “about the same” in three months for startups (57.4%), the declining trend of those seeing future conditions better (now 25.9%) 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 63%, though those seeing funding “harder or much harder” to obtain in the next three months stood at 33.3%.
- Demographics: 49.6% of respondents were currently employed full-time, and 18.5% were current business owners seeking an additional business. The Gen-X cohort dominated with 47.19% of respondents, while Baby Boomers fell back into third place at 16.0%, as Millennials regained the number two position at 33.6% of respondents. This month, Gen-Z was less than 0.8% of respondents, down from the 10% peak seen in February 2022, and below the 3.29% share of all respondents seen in 2022.
Download a copy of the April 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 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, May 3rd, 2023.