May Startup Sentiment Index Shows Over 74% of Aspiring Business Owners Expect to Start Up Within The Next 6 Months
Wednesday, June 16th, 2021
Entrepreneurs who agree or strongly agree that "now is a good time to start a business" reached 67% in May, up from April's reading at 65.4% of respondents, and the second-highest in 11 months. 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 May 20-27, 2021, as U.S. adult vaccination rates approached 63% and states relaxed business and travel restrictions as the Memorial Day holiday weekend approached.
Future business conditions: Respondents see further improvement ahead, with 51.4% of respondents believing that, in three months, business conditions will be "better" or "much better" than now.
Access to funding: The percentage of entrepreneurs concerned over acquiring adequate funding was essentially flat, with those seeing funding "harder or much harder" to obtain at 34.7% in May compared with 34.8% in April 2021. The "stock market" and "tax law changes" ticked up in May.
Demographics: 56.1% of respondents are currently employed full-time (highest since August of 2020), and 19.3% are current business owners. Gen-X (47.1%) and Gen-Y (31.6%) are the largest age cohorts, while "Baby Boomers" follow at 18.4%.
"Evidence continues to mount for a boomlet in startups before year end," says Hunter Stokes, president of FranchiseVentures. "And the next wave of entrepreneurs are leaving full-time jobs or adding to existing business ventures to achieve their personal goals."
Download a copy of the May 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.