The economy is the driving force for nearly half of all Australians planning on purchasing a franchise in the next three years according to franchise mortgage broker Mortgage Choice.
The nationwide companyÕs third annual Potential Franchisee Survey also revealed a renewed desire for income potential above all other outcomes that can be achieved by running your own business.
In order of preference, the top three reasons for wanting to be a business owner were: income potential (54 percent); job satisfaction (46 percent); and flexibility (44 percent). Women showed greater interest than men in both income potential and flexible working.
“Working to live rather than living to work is still an important motivator for potential franchisees, but the income that can be produced via running your own business is presently the most important factor for the growth of the Australian franchising industry,” said senior corporate affairs manager for Mortgage Choice, Kristy Sheppard.
The survey showed the greatest hurdle respondents expected their business to face in the first year of operation was the ability to make a profit (46 percent).
Of the 680 respondents looking to move into franchising by June 2012 just over half of respondents plan to buy a new franchise (52 percent) while 48 percent will buy an existing one, with women more likely to choose an established franchise.
The food franchise arena attracted most attention from respondents, with 47 percent looking to the restaurant, food and caf sector; 22 percent were interested in other retail franchise opportunities.
Forty eight percent believed it seems safer to run their own business than have a job in someone elseÕs hands; 40 percent believed they could achieve a higher salary as their own boss; and 30 percent were nervous about their current job security.
Sheppard said this yearÕs independently conducted survey indicated optimism around entering into self-employment, due to its perceived safety.
“Of the respondents who were being influenced by the current economic situation to purchase a franchise, almost one half believed it was safer to be their own boss than to live life as an employee,” she said.
“Many Australians looking to buy a franchise in the next three years are turning to this sector in the hope it will dissolve uncertainty over their job security and enhance their ability to make a decent wage while satisfying their need for stimulation and personal growth.”