Franchise Insights, a research and intelligence-gathering arm of Franchise Ventures, recently published the findings of an early summer survey of aspiring business owners. The findings were based on a survey, taken during the week of June 23-30, 2022, as part of the ongoing Small Business Startup Sentiment Index™ – which you can view by following this link. The index is a monthly snapshot that reveals what prospective business owners think of the current entrepreneurial climate. It’s based on surveys that query future business owners on the following issues:
- Perceptions about the current startup environment, along with comparisons to three months ago and three months into the future
- Anticipated time frames for business startup
- Key economic, financial, and environmental factors influencing the decision to pursue business ownership
- Demographics of survey respondents, including employment status and age cohort, and race/ethnicity
The findings of this particular survey should be of interest to those wishing to become their own boss through franchising. The big takeaway? Read on for a fairly interesting conclusion…
The 3 Paths to Business Ownership
What the survey set out to determine was how current entrepreneurs feel about the path they intend to choose to establish business ownership. As we know, there are three primary routes. You can start up your own business from scratch, buy an existing business from its current owner, or purchase a franchise. How did the June survey respondents answer this question? Simple. They prefer the franchising route – and by a wide margin.
Almost 40% of the respondents indicated an interest in going the franchising purchase route. And just over 20% expressed interest in buying an existing business. Franchising beat existing business purchases by a 2-to-1 margin! Historically, this development mirrors what the Small Business Startup Sentiment Index has been noting since the start of the pandemic. Perhaps it has much to do with the uncertainty of the business climate over the past three years, but the safety and security of purchasing a franchise – as opposed to going it alone – has only gained in popularity over this same time period.
Franchise Insights believes that these prospective business owners are lured to franchising because of its no-hassle nature. Without a doubt, these respondents saw purchasing a franchise as a much less risky proposition than the other means. Reasons why? It’s highly likely that these future business owners are well aware of the proven business models that franchise concepts rely upon. And it certainly doesn’t hurt that franchisees are provided with comprehensive training and ongoing support when launching their business pursuits. As we say in the franchising industry, you’ll be in business for yourself – but never by yourself. And with franchising, the choice of business models to choose from is vast, including concepts at every price point.
There are potentially millions of Americans who one day wish to pursue an entrepreneurial future. Their hopes and dreams are inexorably connected to the desire to empower themselves. To finally have control over their income-generating potential, a work-life balance that isn’t just a stated platitude, and the flexibility to take control of their own schedule and career-minded pursuits. If you count yourself among them, FranNet can help you chart a course to make all of your entrepreneurial dreams a reality.
FranNet can help you begin your personal entrepreneurial journey. Getting started is simple and involves setting up a no-cost, no-obligation appointment with one of our qualified FranNet representatives. Not sure what type of business you were meant to own? That’s fine, too – you simply need to reach out and speak with one of our qualified franchise experts today! Together, we can find a business opportunity that aligns with your lifestyle and income-oriented goals.