The Pandemic Had Little Impact on the Primary Motivations for Franchise Ownership
September 1, 2021 — Some things haven’t changed, despite the global pandemic. The control over one’s destiny and financial independence remain the most powerful motivations for owning a business. In fact, working for oneself remains the main motivator cited by entrepreneurs researching business ownership across the leading network of online franchise information directory brands.
- “Be my own boss” was the most selected response when asked “Why do you want to own your own business?”, with 89.4% of the responses in Q2 2021. That’s up from 88.4% in the second quarter of 2020 as the pandemic lockdowns and restrictions were implemented and remote work became the norm.
- The survey allowed multiple responses, and many entrepreneurs also selected “Income Potential” as an additional reason – it ranked a strong No. 2, with 70.7% of the responses, down slightly from 71% in April-June 2020.
- “Lifestyle Rewards” is the No. 3 most common motivation with 55.4% of responses, and might include the benefits of working from home, setting flexible hours or running a seasonal business. This response was slightly up from the 54.8% seen in April-June 2020. Similarly, “Side Business to Supplement Income” was No. 4 with 49.7%, allowing for part-time ownership or a less-risky path to start a new business. This is up slightly from the 48.9% of respondents seen as the pandemic unfolded in the second quarter of 2020.
- Finally, “Tired of Climbing the Corporate Ladder” was No. 5 with 37.6% of the responses, affirming that many small-business and franchise owners bring a depth of professional experience to their new operations. This compares with 36.9% of respondents in April-June 2020.
“Controlling my own destiny” was also the top motivation cited in the July Small Business Startup Sentiment Index™, a monthly survey of individuals who have moved beyond initial research and contacted franchisors to further explore ownership. That survey asked “How does the emergence of Covid-19 affect your interest in business ownership?”, and in July 2021, 44.4% said that it “Boosts my interest in controlling my own destiny through business ownership.”
The fundamental drivers for business ownership have not changed despite the most significant societal and economic disruption since the Great Depression. The benefits of business ownership, including the control of one’s destiny and the perceived returns from the hard work of building a business are worth the risks, and for many, the pandemic became the impetus for taking the first steps.
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, September 1st, 2021.