NORFOLK, Va., January 6, 2021 – Entrepreneurs are increasingly optimistic about starting their businesses, with the expressed intent to start “this month” rising to a new high of 24.1% in the December survey. Startups planned for “4-6 months out” reached the highest levels ever recorded in the FranchiseInsights.com Small Business Startup Sentiment Index (SSI), collected from individuals who have recently inquired about starting their own businesses.
Forecast: Boom Coming in Business Startups in 2021
The survey was conducted Dec. 17-24, 2020, following news of the first Pfizer vaccinations in the U.S. on Monday, Dec. 14, and the first shipments of the Moderna vaccine on Sunday, Dec. 20. With much speculation about the timelines of significant percentages of the U.S. population being vaccinated, aspiring business owners made their plans.
- Future business conditions: Respondents were optimistic, though seeing things getting a bit worse before getting better. Almost 43% of respondents believe that in three months, business conditions will be “better” or “much better” than now, down from 48.3% last month.
- Access to funding: Entrepreneurs’ concerns are finally abating, with those seeing funding “harder or much harder” to obtain dropping from 34.3% in November to 29.2% in December, the lowest reading since March 2020.
- Demographics: 49.5% are currently employed full-time, and 17.7% are current business owners. While Gen-X (38.9%) and Gen-Y (31.1%) are the highest percentage of survey respondents, “Baby Boomers” surged from 11.8% to 24.6%.
“The timeline for economic recovery is much clearer with the availability of multiple vaccines with effectiveness higher than 90%,” says Michael Alston, senior advisor to FranchiseInsights.com. “Aspiring business owners are researching opportunities and making their startup plans.”
Download a copy of the December 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.
About Franchise Insights
A unit of FranchiseVentures, Franchise Insights provides research and intelligence to help the franchise industry and investors understand and meet the needs of budding entrepreneurs who want to own their own businesses. With a vast and growing proprietary data set of U.S. franchise inquiries, we use the tools of data science to make inferences and discover best practices to foster the growth of small businesses.
FranchiseVentures is the leading demand generation platform for aspiring business buyers and franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead generation brands include Franchise.com, FranchiseSolutions.com, FranchiseGator.com, FranchiseOpportunities.com, FranchiseForSale.com, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective business and franchise buyers in the U.S.
For more research from the FranchiseInsights.com proprietary data set, subscribe above or follow on LinkedIn.
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