Startup Sentiment Softens Again in June

By: Michael Alston for Franchise Insights

July 8, 2026 – After stronger startup sentiment in February through April 2026, June saw the second month of decreasing optimism as less than half (47.5%) of persons exploring franchise ownership agree or strongly agree that “now is a good time for startup”, down from 52.2% in May and 62.2% in April.

This decrease in optimism about business conditions comes as consumer confidence readings in June 2026 Conference Board and University of Michigan surveys edge up from weaker May readings.

On the other hand, 62.5% of this month’s respondents say they are more likely to start a business now than three months ago, perhaps for reasons related to their own personal situations.

About 75% of aspiring franchisees see business conditions the same or better three months ahead.

With respect to future conditions, 52.5% of respondents to the monthly sentiment survey see business conditions “about the same” in three months, with another 22.5% seeing them “better” or “much better” in three months.

The impact of AI is likely to be a topic of conversation with prospects. Of this month’s respondents, 62% of prospects say advances in artificial intelligence had some influence on their interest in starting businesses, and 15% say that it makes them more interested in businesses enhanced or enabled by AI. Further, 13% say that it actually increases their desire to control their own destinies through business ownership rather than lose their jobs to AI. But 40% say they favor businesses less likely to be displaced by AI (up from 32% in May). While AI is emerging as a concern, it is currently among the least important characteristics in their choice of franchises.

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

Asked about timing, 51.5% of respondents planned their startups within the next three months, and 69.8% 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 84.3%.

Additional Survey highlights:

Future business conditions: Despite the uncertainty of tariff effects and policy changes ahead, 75% of respondents see conditions no worse – staying the same or getting better – in three months. Accordingly, only 25% of respondents are worried that conditions will be “worse or much worse” in three months.
Access to funding: 70% 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 42.5% of the total, almost double the 21.7% in May, and the highest since October 2025. “Economic climate” was the second most common concern at 37.5% of respondents. Third ranked was “political changes” at 22.5%.
Current Employment: Of these respondents, 42.5% are currently employed full-time. Another 15% of respondents were current business owners seeking an additional or replacement business. Freelancers and consultants were 27.5%, while part-timers were at 12.5%, and 2.5% were active military.
Age Cohorts: Gen-X remains the largest share, at 54.1% of respondents, though down from the record 63.9% seen in June 2024. Boomers were 18.9% of respondents, trailing the 27% who were Gen-Y (Millennials), the largest cohort in the adult population, but years away from the peak age for business ownership. Gen-Z and the “Silent Generation” were each less than 1% of respondents.

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 June 23-30, 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 Tuesday, July 7th, 2026.