Small Business Startup Sentiment Surges to Highest in Over a Year

By: Michael Alston for Franchise Insights

Subscribe here to get Franchise Insights as they are released. 

February 7, 2024 – Prepare for launch! January startup sentiment data show 84.5% of aspiring franchisees plan their launches in the next twelve months, the highest percentage seen since December of 2023.

So far, the first of our Predictions for Franchise Development and Lead Generation for 2024 is looking very much on target.

Almost 73% of aspiring business owners either agree or strongly agree that “now is a good time to start a business,” on an upward trend beginning a year ago. Now 89% of January survey respondents see conditions for business and franchise startups “the same or better in three months.” 

In January, 91.3% of aspiring entrepreneurs plan their startups within the next 12 months.

In January 2024, just over a quarter (26.3%) of entrepreneurs planned their startups within the next three months, and 76.3% within the next six months. Further, 67.5% of entrepreneurs surveyed say they are “more or much 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 January 25-31, 2024. 

Gen-Z Age Cohort Surges to Highest in Thirteen Months

Additional highlights:

• Future business conditions: Reversing a multi-year downtrend in sentiment about future business conditions, 88.8% of respondents see conditions no worse – staying the same or getting better in three months– with 53.8% seeing conditions “about the same.”
• Access to funding: The percentage of entrepreneurs concerned about finding  adequate funding was 69.9%, and those who see funding “harder or much harder” to obtain in the next three months were 20% of respondents.
• Demographics: 48.8% of respondents were currently employed full-time, and 12.5% were current business owners seeking an additional or replacement business. The Gen-X cohort dominated with 46.3% of respondents. Millennials and Baby Boomers tied at 20% of respondents for the first time in over four years. This month, Gen-Z surged to 8.5% of respondents, the highest percentage since February 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 FranchiseVentures lead generation platform.

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.

Interested in more insights from our proprietary data set? Subscribe here to make sure you hear about them first.

Contact FranchiseVentures to get your share of today’s aspiring franchise owners.

 
Published on Wednesday, February 7th, 2024.