Franchise history has officially been made, as we see an increased number of the Gen Y and Millennial demographics (ages 26-41 in 2022) interested in owning their own business, and in particular a franchise. For the first time ever, more Millennials are looking to own a franchise more than Baby Boomers (ages 58-76 in 2022).
Also known as the ‘80’s and 90’s babies’, Gen Y and Millennials are quickly making a huge impact on the industry and are seeing the value of owning their own franchise and improving their ‘work-life’ balance. With interest growing, and more of these younger generations seeking a new career path, they now take out the second largest generation of future franchise owners at 24.7%, pushing Baby Boomers who are currently at 23.4%.
While they overtake Boomers in the franchise rally, there is still one generation that remains at the top, and for good reason. Generation X (ages 42-57 in 2022), who sit in the middle of Gen Y/ Millennials and Boomers, remain long-time franchising legends. They maintain the highest franchise ownership contributors of the 3 gens currently in industry.
Gen Y and Millennials as a collective are becoming increasingly motivated to occupy a piece of the franchising pie, due to the advantages of starting a business with an already established company. Franchising with an already reputable company means you enter an already developed business model, an already established and recognised brand, advanced business support, faster expansion and better market penetration.
Gen Y and Millennials are known as the first ‘tech-savvy’ generation, who crave purpose, flexibility, are consuming product and services differently, and are super hungry for success. Becoming their own boss means having the ‘work-life’ balance and flexibility they desire.
Statistics published in the BFA/NatWest Franchise Report shows that more under 30s are entering the UK franchise industry as franchise business owners than ever before - with 18% of all franchisees now under 30.
Gen X have a bunch of strengths which contribute to why they have held and continue to hold the franchising sector so strong. Research by DDI: Global Leadership Forecast 2018, The Conference Board and EY with support from CNBC- Took data from more than 25,000 leaders spanning 54 countries and 26 major industry sectors. Their research found that Gen X now counts for 51% of leadership roles globally. With an average of 20 years of workplace experience and knowledge under their belts, they are clued up and take up a majority of top executive roles (Source: DDI, 2018).
The inevitable boom in prime age population looks great for decades of franchise growth. In saying this, we can take a lot from older generations like Baby Boomers and Gen X, which younger generations might have a short fall in. Gen X and Baby Boomers after all have a wealth of knowledge and experience, and can help young entrepreneurs to grow and build their business. They are known for their problem-solving abilities, resilience and team-building mentalities, which all come into play when owning a business.
They have been exposed to more ups and downs than the younger gens, they harness skills which could only be learned through experiences. Often known as the ‘backbone of the business’, Baby Boomers and Gen X have shaped the workforce, and quite frankly, what the business world is today. The great news for the franchise industry is that both Millennials and Generation X combine a growing population reaching prime start-up years in coming decades.
