Startup Sentiment Data Shows Aspiring Business Owners Enthusiastic About Launches in 2025
By: Michael Alston for Franchise Insights
January 7, 2025 – The rising trend in near-term intentions to start businesses bodes well for franchise development in 2025. In late December surveys, 64% of aspiring business owners either agreed or strongly agreed that “now is a good time to start a business,” showing optimism about conditions now and ahead. In the same survey, 84.9% of respondents see conditions for business and franchise startups “the same or better in three months.”
Record 93% Share of Respondents Plan Starts Within 12 Months
Of this month’s respondents, 50.0% of entrepreneurs planned their startups within the next three months. Further, 61.6% 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.
89.3% Are Optimistic About Business Conditions Three Months Out
Additional highlights:
- Future business conditions: Reversing a pandemic-induced multi-year downtrend in sentiment about future business conditions, 89.3% of respondents see conditions no worse – staying the same or getting better in three months– with only 30.2% seeing conditions “about the same” as now, which they view as good. This month only 15.1% see conditions getting worse or much worse in three months.
- Access to funding: Almost two-thirds (64%) of entrepreneurs were concerned about finding adequate funding, and those who see funding “harder or much harder” to obtain in the next three months dropped to 20.9% of respondents. For the seventh month, “political changes” held third place, with the election resolved, it was a concern among fewer respondents this month.
- Demographics: Of the survey respondents, 45.3% are currently employed full-time, down from the record 61.7% in June. Another 20.9% of respondents were current business owners seeking an additional or replacement business. Freelancers and consultants were 17.4%, followed by part-timers at 16.3%. Gen-X remains the largest share, at 52.4% of respondents, pulling back from the record 63.9% seen in June 2024. Boomers dipped to 21.4%, and the Gen-Y or Millennial age cohort made up 20.2% of respondents. Gen-Z were 4.8% of respondents, near the strong showing at 6.7% in September 2024.
While funding is perennially the biggest concern, 41% of respondents think financing will be easier in three months.
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 Franchise Ventures lead generation platform.
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.
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Published on Tuesday, January 7th, 2025.