According to GoDaddy's 2024 annual Venture Forward report, microbusinesses are proving their resilience: 75% are restarting new businesses after setbacks. Despite the economic uncertainty, these entrepreneurs persist and 39% of new businesses become the main source of income for their households.
Even in the midst of economic challenges, micro-entrepreneurs continue to demonstrate confidence in their abilities. While only 39% express confidence in the economy, 74% remain optimistic about their business prospects for the next six months. Many make decisions based on business needs rather than general economic conditions. What's notable is that even among those with a pessimistic view of the economy, one in four plan to hire new employees in the next year.
The major impact of small businesses on the US economy
Microbusinesses, which often start small, are critical to the U.S. economy:
- From a side business to a full-fledged company: 34% of micro-businesses start as side projects, with more than 70% using an online presence to drive growth.
- Job creation: At the county level, each micro-enterprise creates an average of seven jobs, a significant increase from two in 2020.
- Community support: 58% of micro-business owners say their businesses benefit their local communities.
Advances in Justice and Representation
The micro-business ownership landscape is evolving, with notable advances in diversity and representation:
- Women's property: Women now own 51% of micro-businesses, a significant increase from 41% in 2019. Almost a third of these women entrepreneurs are the primary breadwinners of their households.
- Black-owned businesses: Growth in Black-owned businesses continues, with women driving much of this expansion.
- Older entrepreneurs: Entrepreneurs aged 55 and older now make up 19% of micro-entrepreneurs, reflecting the diversity of age, gender and race in the sector.
“Setbacks often lead to new beginnings and new opportunities,” said Alexandra Rosen, Global Head of GoDaddy Venture Forward. “These entrepreneurs show how persistence can lead to profit and impact, not only for their households, but also for their communities. Microbusinesses remain critical to local economies and are the heartbeat of neighborhoods.”
GoDaddy's Venture Forward initiative analyzes more than 20 million online businesses with digital presences, most of which employ fewer than ten employees. Since 2018, Venture Forward has surveyed over 50,000 entrepreneurs and provides comprehensive insights into the microbusiness ecosystem.