Move over, Boomers, there’s a new generation in town when it comes to interest in franchising. At least according to some very interesting research conducted by Franchise Insights. A leading firm that produces actionable intelligence, Franchise Insights applies the tools of data science to provide an accurate snapshot of entrepreneurship in the U.S. The recent project to determine what demographics make up the majority of franchise inquiries was determined using proprietary statistics from FranchiseVentures and data from Alliant, specialists in consumer audience targeting, data enrichment, and predictive analytics.
So, what are the main takeaways from this team’s research and conclusions? Let’s review…
Generation Next Steps Up
Generation X (ages 41-56) still make up the majority of franchise inquiries at 48.2%. But it’s the battle for second place that just got interesting. For the first time, Millennials (ages 25-40) outpaced Baby Boomers (ages 57-75) when seeking an entrepreneurial future. The margin is thin – with Millennials making up 24.7% to the Boomers’ 23.4%. But when you combine both Generation X and Millennials (ages 25-56), more than three-quarters of all franchise inquiries belong to those still firmly planted in their career earning phase.
Who are the Millennials?
Much has been investigated about the Millennial generation and what researchers have discovered goes beyond stereotypical profile personas. Exactly what motivates this demographic group? In a break from previous generations, the research paints a picture of a more idealistic and altruistic bunch. They aren’t exactly motivated by money or status, rejecting the last vestiges of the “Yuppie” generation obsessed with status and possessions. They can be just as hard-working as other age group demographics, but they prefer to toil for a higher purpose. They’re extremely conscious of environmental and sustainability among employers, one factor that’s likely led to an increased effort to promote the environmental, sustainable, and governmental (ESG) aspects of a corporate culture. As one might imagine, they’re extremely tech-savvy, having grown up with the advent of the smartphone and mobile app craze. Millennials are also known for their affinity of working in groups, preferring environments where teamwork is paramount to collaborative success. And while some of the off-key research has labeled them as lazy, self-entitled, and self-absorbed, these descriptions do not reflect the true nature of all Millennials.
Why Generation Next Matters to Franchising
With Gen X and Millennials now leading the charge for franchise ownership inquiries, the industry appears to be settling on a firm foundation that portends a bright future. After all, these age groups represent most of the current earning – and buying – power among the U.S. population. Coupled with the dramatic changes in the workforce brought about by the pandemic, such as remote work, flexible schedules, and an increased interest in taking charge of our own destinies, the combined generations labeled X and Y may indeed produce A+ results for the franchising industry for years to come.
Whether you’re a Boomer, Gen X, or a Millennial, when it comes to small business ownership, there’s simply no substitute for the proven business models and sheer economic opportunity available through franchising. If this is a route you’d like to pursue, FranNet can help you get started today by setting up a no-cost, no-obligation appointment with one of our qualified FranNet representatives. Together, they can help you find a franchise ownership opportunity that matches up perfectly with your lifestyle and income-oriented goals. Getting started is easy – reach out and talk with one of our franchise experts today!