October Startup Sentiment Index shows three-month trend in advancing startup timelines

October Startup Sentiment Index shows three-month trend in advancing startup timelines

Published: 12-11-2020 12:57:50 | By: Pie Kamau | hits: 929 | Tags:

The number of respondents agreeing that now is a good time to start a business reached a three-month high at 60.6% in October, from a monthly survey of individuals who have recently inquired about businesses for sale, in responses collected Oct. 24-26, 2020, for the FranchiseInsights.com Small Business Startup Sentiment Index (SSI).

Concerns regarding access to funding, historically the most significant factor, decreased significantly in October with the 31.7% saying that funding will be "easier or much easier" three months from now, edging out "harder or much harder" at 30.2% of respondents.

While the pandemic has had a devastating impact on small businesses, 44.3% of the respondents indicated that COVID-19 actually increased their interest in controlling their destiny through business ownership in October's survey. The number of would-be entrepreneurs who have decided to put their startup plans on hold plummeted from 20.6% in September to 10.7% in October, a 48% decrease.

Michael Alston, Senior Advisor, FranchiseInsights.com: "It looks like would-be entrepreneurs see clear skies after the election. They may provide a partial explanation to the mismatch between measured expectations for economic recovery amid pandemic setbacks and the ebullient mood of investors."

In September, Franchise Insights reported the dramatic increase in intent to start a business three months out. These notable improvements in buyer optimism might suggest that buyers were looking beyond the election to the prospects of vaccines and other pandemic countermeasures. 

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.

www.franchiseinsights.com

www.franchiseventures.com