Microbusiness owners are proving their resilience, with 75% relaunching new ventures after setbacks, according to GoDaddy’s 2024 Annual Venture Forward report. Despite economic uncertainty, these entrepreneurs persist, with 39% of new ventures becoming the primary source of income for their households.
Microbusiness owners continue to display confidence in their abilities, even amid economic challenges. While only 39% express confidence in the national economy, 74% remain optimistic about their business prospects for the next six months. Many make decisions based on business needs rather than broader economic conditions. Notably, even among those with a pessimistic view of the economy, one in four plans to hire within the next year.
Microbusinesses’ Big Impact on the U.S. Economy
Microbusinesses, often starting small, are vital to the U.S. economy:
- Side Hustles to Full Businesses: 34% of microbusinesses begin as side projects, with more than 70% leveraging an online presence to drive growth.
- Job Creation: At the county level, each microbusiness creates an average of seven jobs, up significantly from two in 2020.
- Community Support: 58% of microbusiness owners report that their ventures benefit their local communities.
Progress in Equity and Representation
The landscape of microbusiness ownership is evolving, with notable progress in diversity and representation:
- Women Ownership: Women now own 51% of microbusinesses, a significant increase from 41% in 2019. Nearly one-third of these women entrepreneurs serve as the primary breadwinners for 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 account for 19% of microbusiness owners, reflecting the diversity of age, gender, and race within this sector.
“Setbacks often lead to fresh starts and new opportunities,” said Alexandra Rosen, Global Head of GoDaddy Venture Forward. “These entrepreneurs are showing how perseverance can translate into profit and impact, not just for their households but for their communities. Microbusinesses remain essential to local economies and are the heartbeat of neighborhoods.”
GoDaddy’s Venture Forward initiative analyzes more than 20 million online businesses with digital presences, primarily employing fewer than ten people. Since 2018, Venture Forward has surveyed over 50,000 entrepreneurs, offering comprehensive insights into the microbusiness ecosystem.
