In a new survey (PDF file), Franchise Insights, a unit of FranchiseVentures, found that majority (73%) of would-be entrepreneurs agree that “now is a good time to start a business.” The study, called the Small Business Startup Sentiment Index, was conducted February 24-28, 2022, and illustrated that even the turmoil of the invasion of Ukraine and the resulting uncertain financial markets did not dissuade aspiring business owners from their hopes of launching a new venture.
Over half (57.4%) of participants were committed to starting their businesses within the next three months and more than three-quarters (76%) of respondents believe business conditions will be about the same or even better in the next three months.
“Entrepreneurs are putting the pandemic in the rearview mirror,” said Hunter Stokes, FranchiseVentures President. “They are looking beyond the current geopolitical uncertainty to plan their startups in the next few months.”
Even though the pandemic continues to impact both social and commercial activities, the survey showed that 30.6% of participants believe the pandemic is no longer a factor affecting business conditions. In contrast, however, 42.9% of participants said that the pandemic reduced the amount of capital they had to invest.
Answers to the Small Business Startup Index over the last two years have reflected concern about the ongoing pandemic’s impact on startup opportunities. Previously, respondents most often cited “the desire for controlling my own destiny through business ownership” when asked how COVID-19 impacted their interest in starting a business or opening a franchise. As the pandemic continued, more respondents preferred “businesses that would be resistant” to disruptive forces like COVID-19. This selection was only chosen by 19.4% of participants in the most recent survey, however, and only 5.1% of people indicated that they would put their plans on hold because of the pandemic.
