Recent surveys of prospective small business buyers revealed a healthy uptick in confidence from January to February 2020. The new Small Business Startup Sentiment Index™ is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale.
When presented with the statement, “Now is a good time to start a business,” respondents demonstrated a positive shift in sentiment from January to February. In the survey conducted Feb. 14 to 17, 76.4% of respondents indicated that they “agree” or “strongly agree” that now is a good time to start a business. Only 4.5% expressed apprehensions about the now being a favorable time for launching a new enterprise, while 19.1% indicated a neutral perspective.
This uptrend in optimism was expressed despite the turbulent political climate, the shortage of skilled employees available in the labor market and growing unease related to the coronavirus.
The optimism of prospective owners is also shared by the owners of established small businesses. The March issue of the NFIB Small Business Trends showed a similar positive outlook from existing business owners, though it was also conducted before the recent stock market decline and Covid-19 pandemic designation.
In the next monthly survey coming soon, we will get a fresh view of how concerns about coronavirus impact and financial market stress bear on prospects for franchise purchases.
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 Franchise Ventures.
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