Here in 2021, we aren’t surprised that girls run the world, much less their own business. Historic changes are underway in the demographics of future franchise owners, as revealed by the latest data set from Franchise Insights Magazine. During the height of the pandemic of 2020, a significant ebb was observed in women’s interest in franchise ownership. But females are back in the franchise arena full force as of the start of 2021. Age truly is just a number, and those future female bosses among the Gen-X and Gen-Y (Millennial) decided that their number would be an impressive half of all franchise ownership prospects.
Women as franchise owners isn’t exactly news. In 2018 there were 9.1 million woman-owned businesses in America. Those female business owners employed 7.9 million people and generated $1.4 trillion. Women are slated to make a full recovery and then see new heights of their previous presence in industry. Females have displayed a finesse for adaptation in the business world time and time again. This will serve them well as the nation as well as the world finds it’s footing in an undiscovered new normal.
In the franchise world, women between the ages of 41 to 56 as of 2021 (Gen-X) were leading the prospect boards in 2018, at 51.8%. The subsequent two years saw a dip in that enthusiasm as men took the lead, rendering the women’s Gen-X inquiries at 49% during the height of the Pandemic in 2020. The economic climate was stormy all around during the pandemic, but the first half of 2021 reports a strong rebound of women Gen-X prospects, reaching 50.9%. This number remains below the 2018 prospects of the same demographic, although a rally seems imminent. By the end of the 2021 we could see a full restoration of pre-pandemic franchise interest, or even exceed the previous numbers.
Gen-Y females (age 25-40 in 2021) were nipping at the heels of their Gen-X counterparts in 2018, comprising 80% of franchise inquiries. This number is thought to be largely due to the higher percentage of Gen-Y females being at prime age for family planning. Pandemic closures of childcare facilities coupled with mounting economic strain and heightened work-related stressors presumably fueled the dip in franchise interest among Gen-Y women. This group has, however, renewed their fervor for franchise information as the Gen-Y women have become 51.7% of prospects, marking a new high in this group.
Among Baby Boomers, women account for under 50% of aspiring franchise owners. Their interest has rebounded to its previous numbers in 2019. Boomers are inevitably comprising less and less of new business start-ups and therefore, Gen-X and Gen-Y will become more dominate in seeking franchise opportunities. As the younger demographics further integrate on the start-up scene, women are poised to hold an impressive piece of that pie in the next few decades. If the past is any indication of the future, we can all expect to see more and more women in the business world, and not just those of a certain age.
For franchise consultants like myself, all of the statistics from this data is an encouraging sign. If you’re currently thinking about a life more entrepreneurial, FranNet of San Antonio and Austin can help you begin a journey that ends with business ownership of your own.
About the Author
Teri Villanueva is a franchise consultant with FranNet of San Antonio and Austin. Teri helps individuals discover the possibilities of entrepreneurship through a process that matches their passions. She’s passionate about business ownership opportunities and understands not only the risks, but the quality of life and financial independence benefits that many clients seek. Her main objective is to provide education on the franchise industry. Her complimentary services help clients understand the pros and cons of business ownership. Teri is involved in the San Antonio Hispanic Chamber, Women’s Chamber of Commerce and National Association of Women Business Owners.