July Startup Sentiment Index™ Shows Pandemic Boosts Desire for Business Ownership
Entrepreneurs who agree or strongly agree that “now is a good time to start a business” were 65.9% in July, below the record level of 76.9% reached in June. Nonetheless, 44.4% of respondents report that the pandemic actually increased the desire to control their own destinies through business ownership. FranchiseInsights.com compiles monthly the Small Business Startup Sentiment Index™ (SSI) of individuals who have recently inquired about businesses for sale.
The most recent Startup Sentiment Index™ survey was conducted July 22-29, 2021, as concerns about the spread and transmissibility of the Delta Covid variant grew.
- Future business conditions: Respondents are positive about the current state of the economy, with 40.7% believing that in three months, business conditions will be “better” or “much better” than now, down from 53.2% in June. Over 44% see conditions “about the same” in three months.
- Access to funding: The percentage of entrepreneurs concerned about acquiring adequate funding dipped, with those seeing funding “harder or much harder” to obtain at 27.4% in July, down from 29.7% in June.
- Demographics: 47.7% of respondents are currently employed full-time, and 25.5% are current business owners — the highest percentage seen in the history of the survey. Gen-X (54%) and Gen-Y (25.5%) are the largest age cohorts, while “Baby Boomers” follow at 17.4%.
“The percentage of franchise seekers who are current business owners is remarkable,” says Hunter Stokes, president of FranchiseVentures. “These individuals are seeking to grow, diversify or replace an existing business to achieve their dreams.”
Download a copy of the July 2021 SSI report here. See excerpts from prior SSI™ surveys and subscribe to receive the Small Business Startup Sentiment Index™ monthly report when it is released.
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 digital assets of FranchiseVentures.