For better or for worse, the pandemic has changed the rules in many areas of life. On the one hand, we are aware of the value of small things, of the need to have people nearby or the importance of a breath of fresh air; on the other hand, there were difficulties, as in the case of certain sectors and small businesses, which had to reinvent themselves in order to continue their activity. A new paradigm requires a new model. To better understand the sector and anticipate any change in behavior, Jeff, the fastest growing Spanish start-up of international franchises, carried out an internal study on the evolution of entrepreneur profiles and their motivations, summarized in two types: by opportunity and by necessity.
Entrepreneur by opportunity
By definition, an entrepreneur of opportunity is motivated by the desire to flourish, has a business background, wants to take advantage of his contacts and knowledge to seek business ventures. As strengths he has a good attitude when starting a business and has a complete view of the business system. Typically, these do not work in their own business, but rather seek investment to see short to medium term benefits.
These represent 60% of Jeff’s franchisees. Usually, they own other companies or have other types of investments, such as stock exchanges. Their age is between 31 and 50 years old, they are more willing to take risks and will not work in store (or if they do, they will do it part-time), so they are not guided by practical knowledge of the trade at the time to make their decision, as they will hire staff for day-to-day development.
Entrepreneur by necessity
As its name suggests, she is motivated by the need to look for a job and to secure a fixed income that allows her to meet her needs. As a result of the crisis – and as happens every time there is one – this profile is increasing, especially among people aged 45 to 50. However, the pursuit of independence and mastery over one’s own destiny (working on one’s own with a stable income) can also be seen as a necessity. Typically, these entrepreneurs have a practical business mindset, full control over financial operations, and great motivation, when they step out of their comfort zone. However, they are not as willing to take risks as the opportunity entrepreneur.
At Jeff, the entrepreneur represents by necessity 40% and the majority have opted for Mr. Jeff, vertical laundry services, because it is easier to operate. In addition, over the past year, the company has observed that while they used to study four or five franchises before taking the plunge, now their decision is much more informed and they are being debated in between.