Over the past couple of months, FranNet of DFW & Oklahoma shared information, data, and statistics related to the economic climate – specific to both Texas and Oklahoma. Continuing this trend, we’d like to offer our blog readers some additional entrepreneurial trends and perspectives that Legal Zoom recently compiled from various sources. The specific data and analytics included in this compilation were developed by reviewing governmental agency records, peer-reviewed studies, and other small business-related statistical sites.
The following data and information highlights specific interest levels for several demographic personas as it pertains to launching entrepreneurial ventures and/or small business startups, both categories of which include franchise concepts.
Who’s Launching a Business of Their Own?
Have any idea of how many people in the U.S. have ever launched a business of their own in some way, shape, or form? According to the research, it’s more than half – 55%! The primary reasons they do so include unhappiness at work and a lack of autonomy. Their motivations include pursuing their passion or because they recently became unemployed. An overwhelming majority of entrepreneurs have either an associate or bachelor’s degree and the average age at which they begin business ownership is 42 years old. Makes sense, because the two largest demographic groups that pursue small business ownership are Baby Boomers and Generation X. 58.8% are men and 41.5% are women, but women also earn 91 cents for every dollar a man earns – greatly diminishing the gender pay gap.
Data on Small Business Funding and Cost
Did you know that more than half – or 58% – of small businesses in the U.S. were launched with a budget of $25,000 or less? One-third of them begin with startup funding of less than $5,000. For information that’s more relevant to franchise ownership, concepts with a brick-and-mortar location generally cost over $200,000 to launch, whereas the investment average for mobile-based operations is less. Required inventory and/or equipment make up 51% of the expenses. One in four entrepreneurs launched a business with funding from family and friends, but two-thirds of them used their own money for startup costs.
Data and Stats from 2020-Present
Two big factors have had an impact on entrepreneurial pursuits in the U.S. – the pandemic and the Great Resignation. We’ve previously covered the Great Resignation phenomenon, in which nearly 50 million employees willingly left their jobs for greener pastures. Not all were looking to launch a business of their own, but this factor was a boon for the franchising industry. Almost two-thirds of those who quit did so during the pandemic because they feared a lack of job stability. And 2021 and 2022 saw record totals for small business applications – more than 2015-2020 combined!
FranNet of DFW & Oklahoma saved some of the most promising statistics for the end, which have to do with survival and success rates for small businesses. Approximately 81.7% of startups were still in business after the one-year mark, slightly higher than statistics from 2020 (78.4%). The information we’ve covered, which you can read in full here, demonstrates that entrepreneurial success can be achieved despite age, race, or gender. As long as you’re committed to taking control of your own destiny and working diligently to make your entrepreneurial venture a success, you could also be a part of favorable statistics such as these.
Hopefully, someday soon…
If you’d like to know more about franchise opportunities and ownership, please get in touch. FranNet of DFW & Oklahoma is uniquely qualified to match your potential with the possibilities that come from small business ownership through franchising. All you have to do is allow us to be your guide. Our no-cost, no-obligation consultations have helped hundreds of entrepreneurs in North Texas and Oklahoma secure a future that belongs to them and them alone. If you’d like to get started on your own entrepreneurial journey, we’d love to introduce you to a whole new world of possibilities through franchise ownership.