More than Financial Rewards, ‘Being My Own Boss’ Motivates Franchise Seekers
By: Michael Alston for Franchise Insights
August 14, 2024 – Since we last reported on the motivations of aspiring franchise owners at the end of 2023, wars in Europe and the Middle East have continued, and concerns about political change have risen among individuals wanting to own their own businesses. But the primary drivers for business ownership have changed little.
As we’ve seen in almost five years of surveying small business startup sentiment, control over one’s destiny continues to propel entrepreneurs towards owning their own business in America.
Consistent with our large sample of interested franchise buyers for almost five years, “being one’s own boss” remains the primary motivator cited by entrepreneurs researching franchise ownership across the FranchiseVentures network of online franchise lead generation brands.
- “Be my own boss” was the most selected response when asked “Why do you want to own your own business?”, with 85.7% of the respondents in July 2024, topping the record high of 89.5% in November 2023.
- The survey allowed for multiple responses, and many entrepreneurs also selected “Income Potential” as an additional reason – it ranks a strong No. 2, with 62.4% of the responses in July 2024.
- “Lifestyle Rewards” is the third most common motivation, dropping to 46% of respondents. This driver includes the benefits of working from home, setting flexible hours or running a seasonal business. The pandemic gave individuals a taste of greater work flexibility, and they now seek opportunities with the confidence that remote work can be productive and help to achieve better work-life balance. Further, aspects of work flexibility rank closely behind financial considerations among characteristics that prospects find attractive in franchises.
- “Side Business to Supplement Income” suggests shared or part-time ownership or a less-risky path to start a new business while retaining other income streams. This ranked fourth among drivers, cited by 43.8% of respondents.
- Finally, “Tired of Climbing the Corporate Ladder” was fifth, cited by 32.7% of the respondents, affirming that many aspiring small-business and franchise owners bring a depth of professional experience to their new ventures. In our July 2024 survey of aspiring business owners, 47.9% were leaving full-time jobs
Many of these individuals already have experience with business ownership. In the most recent Small Business Startup Sentiment survey, 19.2% of respondents said they were already current business owners.
The fundamental drivers of the desire for business ownership have not changed despite the outbreak of wars in Europe and the Middle East, the highest interest rates in over 40 years, and the global pandemic which was certainly 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 disruptions of the pandemic became the impetus for taking the first steps.
This Franchise Insights analysis is drawn from surveys of individuals inquiring about franchises for sale among the brands of FranchiseVentures.
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, August 13th, 2024.