Startup Sentiment Dips, Though Majority Still See Now As a Good Time to Start

By: Michael Alston for Franchise Insights

June 3, 2026 – After three strong months of improving sentiment, it dipped some in May 2026 as business buyer surveys showed that 52.2% of persons exploring ownership agree or strongly agree that “now is a good time for startup”, down from 62.2% in April.

This decrease in optimism about business conditions is consistent with declines in consumer confidence in May 2026 Conference Board and University of Michigan survey readings.

On the other hand, 63.0% of this month’s respondents say they are more likely to start a business now than three months ago, perhaps for their own reasons.

With respect to future conditions, 52.2% of respondents to the monthly sentiment survey see business conditions “about the same” in three months, with another 26.1% seeing them “better” or “much better” in three months.

Of this month’s respondents, 62% of prospects say advances in artificial intelligence had some influence on their interest in starting businesses, and 38% say that it makes them more interested in businesses enhanced or enabled by AI. Further, 35% say that it actually increases their desire to control their own destinies through business ownership, and 32% say they favor businesses less likely to be displaced by AI.

Over 78% of aspiring franchisees see business conditions the same or better three months ahead.

Of this month’s respondents, 52.6% planned their startups within the next three months, and 67.4% expected their launches within the next six months. The percentage of entrepreneurs planning their startups at some time within the next twelve months stood at 83.2%.

Additional Survey highlights:

Future business conditions: Despite the uncertainty of tariff effects and policy changes ahead, 78.3% of respondents see conditions no worse – staying the same or getting better – in three months. Accordingly, only 21.7% of respondents are worried that conditions will be “worse or much worse” in three months.
Access to funding: 58.7% of entrepreneurs were concerned about finding adequate funding (the top concern), down from 78.9% in January 2026. Those who see funding “harder or much harder” to obtain in the next three months were 21.7% of the total, down significantly from January’s 38.9% of respondents. “Economic climate” was the second most common concern at 52.2%, which was the highest ranking since 55.6% in March of 2020 as the pandemic emerged. Third ranked was “tax law changes” at 26.1%.
Current Employment: Of these respondents, 47.8% are currently employed full-time. Another 15.2% of respondents were current business owners seeking an additional or replacement business. Freelancers and consultants were 26.1%, while part-timers were at 8.7%, and 2.2% were active military.
Age Cohorts: Gen-X remains the largest share, at 47.5% of respondents, though down from the record 63.9% seen in June 2024. Boomers were 20% of respondents, trailing the 27.5% who were Gen-Y (Millennials), the largest cohort in the adult population, but years away from the peak age for business ownership. Gen-Z were 5%, and the “Silent Generation” was less than 1% of respondents.

In April, 62% of prospects said that advances in artificial intelligence had some impact on their interest in starting businesses.

The FranchiseInsights.com Small Business Startup Sentiment Index™ (SSI) is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the Franchise Ventures lead generation platform. This survey was conducted May 23-31, 2026.

Franchise Ventures 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 Sunday, May 31st, 2026.