Has the COVID-19 Crisis changed why people pursue dreams of acquiring their own business? Not according to a recent article published by Franchise Insights titled “Be My Own Boss” Continues to Rank as No. 1 Motivation in Small-Business Ownership Survey.
The article covered key findings in a “Top Reasons For Owning A Business 2020” survey conducted in the second quarter of this year:
• “Be my own boss” was the No. 1 reason selected when respondents were asked, “Why do you want to own your own business?” Nearly nine of 10 people (88.4%) cited this motivation, which was the same response rate as in Q4 of 2019.
What are the other prime motivators? Multiple choices were allowed:
• Many entrepreneurs selected “Income potential” as an additional reason. It ranked a strong No. 2 in the survey with 71% of the responses.
• Cited by over half (54.8%) of survey participants, “Lifestyle rewards” is the No. 3-ranked motive to own a business. These lifestyle rewards might include working from home, setting flexible hours or running a seasonal business.
• Beginning a “Side business to supplement income” was also a powerful motivator, coming in at No. 4 with 48.9% of the responses. A significant number of entrepreneurs prefer part-time ownership or a side business as a less-risky path to starting up a new enterprise.
• Another notable driver? “Tired of climbing the corporate ladder” ranked at No. 5 with 36.9% of the responses. This finding affirms that many small-business and franchise owners bring a depth of outside professional experience to their new operations.
The survey’s No. 1 motivation mirrors the top one cited in June’s Small Business Startup Sentiment Index™.
This monthly survey covers individuals who have moved beyond initial research and contacted franchisors to further explore ownership. Many were not daunted by the challenges associate with the pandemic.
When asked how does the emergence of COVID-19 affect your interest in business ownership?, 38.3% of people said it “Boosts my interest in controlling my own destiny through business ownership.”
