Share of Aspiring Franchisees Expecting Startup Within Three Months Reaches Record

By: Michael Alston for Franchise Insights

March 6, 2024 – Over 63% 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. In the February 2024 survey,  87.4% of respondents see conditions for business and franchise startups “the same or better in three months.” A record 62.1% of entrepreneurs planned their startups within the next three months, and 75.8% within the next six months. 

Further, 67.4% of entrepreneurs surveyed say they are “more or much more likely to launch their startups than three months ago.” FranchiseInsights.com compiles a monthly Small Business Startup Sentiment Index™ (SSI) of individuals who have recently inquired about franchises or businesses for sale.

62.1% of Respondents Plan Their Startups by End of May 2024

The first of our Predictions for Franchise Development and Lead Generation for 2024 is looking on target given these and other measures of small business startup sentiment in our February survey.

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, 87.4% of respondents see conditions no worse – staying the same or getting better in three months– with 53.7% 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 27.4% of respondents.
• Demographics: 43.2% of respondents were currently employed full-time, and 17.9% were current business owners seeking an additional or replacement business. The Gen-X cohort in the prime years of entrepreneurship dominated with 61.2% of respondents. Millennials at 21.2% outpaced Baby Boomers at 10.6%. For the second month in a row, Gen-Z had a high single digits share at 7.1% in February and 8.5% in January, the highest percentages 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.

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 Wednesday, March 6th, 2024.