New research commissioned by parcel delivery service CouriersPlease reveals that for a majority of aspiring young business owners, opening a franchise is perceived as a more secure and supportive option for those looking to start their own business this year.
The research found that 66 per cent of Australian respondents aged 18-30 said they would open a franchise over an independent business. The sentiment is stronger among younger aspiring entrepreneurs, with 59 per cent of those aged 31-50 preferring the franchise route compared to 37 per cent of those over 50.
Overall, 51 per cent of respondents said that they would open a franchise instead of going it alone.
The research noted that 79 per cent believe that it is too risky to start their own business in the current economic climate. Considering that the franchise business segment is comprised of around 1200 franchisors, and around 2,569,900 actively trading businesses in the Australian economy, the report also noted that these findings indicate an impressive appetite for opening a franchise at this time.
“Franchising is attractive to the younger demographic as they’re less inclined to have access to larger sums of money to set up an independent business, and often have less business experience, so will benefit from the structure of a franchise,” Richard Thame, CEO of CouriersPlease said. “A franchisor provides established systems, access to advanced technology, sales collateral, digital marketing, and essential training – all of which help set the partner up for success.
“Opening a franchise provides an opportunity to buy into an established business model that comes with a proven track record, brand awareness, an existing customer base and expert technical and business support,” Thame added. “From parents of young families wanting to build a business around their busy home life to people who have recently moved to Australia looking to establish themselves in their communities; a franchise business model provides the structure and support for someone considering starting their own business.”
The appeal of opening a franchise this year remains largely similar across the States, with South Australians topping the board with 56 per cent of respondents expressing interest in franchise businesses, followed by 54 per cent of Western Australians, 52 per cent from NSW, 51 per cent of Victorians and 48 per cent of Queenslanders.
