Uptrend Seen in Entrepreneur Sentiment About Future Startup Conditions

By: Michael Alston for Franchise Insights

June 7, 2023 – In May 2023, almost 69% of entrepreneurs surveyed say they are “more likely to launch their startups than three months ago.” Over 60% of survey respondents either agree or strongly agree that “now is a good time to start a business”, up significantly from April, but inching back towards the record high of 76.9% in June 2021. 

While 17.9% see business conditions deteriorating in three months, 82,1% still see conditions for business startups “the same or better in three months” in continuation of a trend in improving sentiment since February 2023. In May 2023, 46.2% of entrepreneurs planned their startups within the next three months, and 72.6% within six months.

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 May 28-31, 2023. 

68.9% of survey respondents are more likely to launch their startups than three months ago

Additional highlights:

• Future business conditions: While a plurality of respondents see conditions “about the same” in three months for startups (56.6%), an increasing trend of those seeing future conditions better (now 25.5%) and decrease in those seeing future conditions worse (17.9%) may suggest that entrepreneurs see better times ahead. 
• Access to funding: The percentage of entrepreneurs concerned about finding  adequate funding stands at 67.9%, though those seeing funding “harder or much harder” to obtain in the next three months stood at 38.7%.
• Demographics: 54.7% of respondents were currently employed full-time, and 16% were current business owners seeking an additional business. The Gen-X cohort dominated with 50% of respondents, while Millennials held the number two position at 35.2% and Baby Boomers held third place at 12.0% of respondents. This month, Gen-Z was 2.8% of respondents, near the  3.29% share of all respondents seen in 2022.

Download a copy of the May 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, June 7th, 2023.