The Core of Today’s Franchise Prospects Are at Prime Entrepreneurial Age, Leaving Full-Time Jobs
November 8, 2023 – Almost 62% of survey respondents, either agree or strongly agree that “now is a good time to start a business,” a sentiment essentially flat with September 2023. Now 83.3% of respondents see conditions for business startups “the same or better in three months.” In October 2023, 53.2% of entrepreneurs planned their startups for within the next three months, and 73.8% within the next six months. And 65.7% of entrepreneurs surveyed say they are “more likely to launch their startups than three months ago.”
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 September 21-28, 2023.
Gen-Xers made up a record 54.9% of survey respondents, and 53% were considering leaving full-time jobs.
In earlier demographic studies of aspiring franchise and business owners, we learned that the age distribution of franchise seekers varies little over time. The late forties and early fifties are the peak ages when budding entrepreneurs take interest in business ownership. Gen-X, in the 43-58 age bracket, is the most active franchise-seeking cohort.
- Future business conditions: Reversing a multi-year downtrend in sentiment about future business conditions, 83.3% of respondents see conditions no worse – staying the same or getting better in three months– with 54.9% seeing conditions “about the same.”
- Access to funding: The percentage of entrepreneurs concerned about finding adequate funding was 66.7%, and those who see funding “harder or much harder” to obtain in the next three months were 39.2% of respondents.
- Demographics: 52.9% of respondents were currently employed full-time, and 15.5% were current business owners seeking an additional or replacement business. The Gen-X cohort dominated with a record 59.5% of respondents, while Millennials were 21.4% and Baby Boomers held third place at 14.3% of respondents. This month, Gen-Z was 4.8% of respondents, above the 3.29% share of all respondents seen in 2022.
Download a copy of the latest FranchiseInsights.com Small Business Startup Sentiment 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, November 8th, 2023.