NORTHAMPTON, MA / ACCESSWIRE / December 16, 2024 / GoDaddy
Originally published on GoDaddy LinkedIn
Welcome to the latest issue of the GoDaddy Venture Forward newsletter! Here we share our latest exclusive data, insights and news about small and microbusinesses.
Venture Forward is a GoDaddy research initiative started in 2018 to quantify the growth and impact of online microbusinesses on their local economies, and to provide a unique view into the attitudes, demographics and needs of these entrepreneurs. To date, Venture Forward has surveyed more than 50,000 entrepreneurs with a digital presence, making it the source for microbusiness data and insights. GoDaddy defines microbusinesses as small businesses with a unique domain, an active website and most often fewer than 10 employees.
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Alexandra Rosen
Global Head, Venture Forward
Updated Microbusiness Data Hub
We refreshed the Venture Forward Microbusiness Data Hub through September 2024 across Australia, Canada, U.K. and U.S., including updated microbusiness density data, U.S. Microbusiness Activity Index and global e-commerce trends.
Here are two sets of rankings - the first by sector of the economy and the second by Microbusiness Density across geographies - for the U.S., U.K., Canada and Australia:
Top five e-commerce industries (based on order count) in each country:
COUNTRY | TOP | 2ND | 3RD | 4TH | 5TH |
U.S. | Beauty | Health/Medical | Retail | Fitness/Wellness | Fashion |
U.K. | Beauty | Pets | Health/Medical | Fitness/Wellness | Retail |
Canada | Beauty | Health/Medical | Fitness/Wellness | Sports | Auto |
Australia | Health/Medical | Beauty | Fitness/Wellness | Education | Pets |
Source: GoDaddy Venture Forward, Q2 2024 | |||||
Top five areas ranked by Microbusiness Density (the number of microbusinesses per 100 people) in each country:
COUNTRY | TOP | 2ND | 3RD | 4TH | 5TH |
Australia (SA3) | Adelade City | Sydney Inner City | Melbourne City | North Sydney - Mosman | Eastern Suburbs - North |
Microbusiness Density | 6 | 6 | 5 | 5 | 4 |
Canada (Province) | British Columbia | Ontario | Alberta | Quebec | Yukon |
Microbusiness Density | 3 | 2 | 2 | 2 | 1 |
U.K. (Constituency) | Cities of London and Westminster | Stoke-on-Trent South | St Albans | Holborn and St Pancras | Hackney South and Shoreditch |
Microbusiness Density | 23 | 14 | 9 | 9 | 8 |
U.S. (Lg. Metros: pop. 400K+) | New York, NY | Tulsa, OK | Las Vegas, NV | Ft. Lauderdale, FL | Miami, FL |
Microbusiness Density | 29 | 27 | 20 | 20 | 19 |
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Source: GoDaddy Venture Forward, Q2 2024 |
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Download the data
GoDaddy Venture Forward Annual 2024 Report + New Interactive Landing Page
Venture Forward released its 2024 annual report across Australia, Canada, the United Kingdom and the United States with a new interactive landing page, including an customizable map with microbusiness data points over time on digital businesses with typically fewer than 10 employees. We invite you to explore and download the full report for extended insights and an exclusive dive into what's happening with online entrepreneurs in 2024.
Top 10 States By Microbusiness Count Growth
STATE | 1 year Microbusiness Count % Growth | 5 year Microbusiness Count % Growth | Active Microbusinesses July/Aug '24 | Microbusiness Density July/Aug '24 |
Delaware | 65% | 359% | 381,543 | 38.4 |
Montana | 45% | 61% | 83,132 | 7.6 |
Nevada | 36% | 44% | 601,058 | 19.4 |
Washington | 31% | 50% | 720,836 | 9.4 |
Colorado | 24% | 30% | 598,249 | 10.4 |
New York | 21% | 29% | 1,832,298 | 9.2 |
California | 14% | 19% | 4,026,197 | 10.2 |
Florida | 14% | 32% | 2,471,412 | 11.4 |
Oklahoma | 14% | 57% | 289,666 | 7.3 |
Wyoming | 14% | 212% | 112,421 | 19.5 |
2024 report highlights
Three-quarters of U.S. microbusiness owners relaunch after setbacks
75% of microbusiness owners who close a business don't give up, even if their efforts didn't yield a profit. Instead, they persist, launching new ventures. Of these, 39% become the main income for their households.
Microbusiness owners are placing greater confidence in themselves. They are less swayed by uncertainty in the economy. Only 39% say they are confident in the national economy. But 74% are optimistic about their business prospects in the next six months. Even among those pessimistic about the economy, one in four plans to hire within a year. Entrepreneurs are making decisions based on business needs rather than on the economy.
AI driving job creation in the United Kingdom
While some narratives suggest that AI may lead to the loss of jobs, GoDaddy's data suggests that among microbusinesses it is quite the opposite. Entrepreneurs are using the technology to automate time-intensive jobs such as copy-writing (70%), summarizing information (51%) and content creation (40%), which is allowing many to focus on expansion.
Microbusinesses using AI are twice as likely to employ at least one other person than those that do not, while nearly half (47%) of employees are at AI-supported businesses work full time, compared to 34% of employees at non-AI businesses.
Meanwhile, in the next twelve months, more a third (36%) of entrepreneurs using AI plan to hire more staff, compared to one in six (15%) who are not. They were also three times as likely anticipate "substantial" workforce expansion in the coming year.
Other Key Findings
Also revealed in the GoDaddy Venture Forward 2024 US Report: "In 2021, we first revealed the outsized economic impact made by microbusinesses. Together with economists and academic researchers, we uncovered that they drove up jobs and annual household median incomes, and drove down unemployment. Specifically, the job impact has grown from two or more jobs created for every microbusiness in 2020, to over seven jobs for every microbusiness entrepreneur on a county-level."
Economic Contribution: Microbusinesses, defined as businesses with fewer than ten employees, contribute to 7 jobs at the county level.
Entrepreneurial Resilience: 75% of microbusiness owners demonstrate exceptional perseverance by relaunching their ventures after setbacks, showing their adaptability and commitment despite challenges.
Technology Adoption: Entrepreneurs are increasingly leveraging digital tools and platforms, with significant use cases in e-commerce, marketing, and operational management, driving efficiency and competitiveness.
Community Impact: Microbusinesses are vital to strengthening communities, creating opportunities, and fostering a sense of connection through hyper-localized operations.
Growth Drivers: Small business owners identify personalized customer engagement, digital marketing, and innovative service offerings as key strategies for sustained growth in 2024.
Migration Impact: Areas that saw more people move into their counties, also saw a greater increase in the density of microbusinesses. The farther the move, the greater the impact.
Read the full report
In The News
US
Microbusiness Owners' Top Business Challenges and Opportunities Identified by GoDaddy Data - Small Business Currents
GoDaddy data points to high entrepreneurial activity across US states and cities, signalling opportunities to tailor products locally. A GoDaddy survey identified top challenges for microbusiness owners are marketing, accounting and healthcare, revealing areas for tailored solutions.
Read more in Small Business Currents
U.K.
The top five ways AI could help level the playing field for microbusinesses - Elite Business
GoDaddy surveyed UK small business owners and found 58% want the government to fund technology adoption, indicating a desire for tech subsidies. GoDaddy research suggests AI tools could significantly help microbusinesses compete by improving accounting, inventory and other tasks.
Read more here
Australia
Australian entrepreneurs thrive without degrees, GoDaddy finds - IT Brief
GoDaddy research found two-thirds of Australian entrepreneurs are succeeding without college degrees, showing opportunities to support non-traditional founders. Over 1.4 million Australians now have side hustles according to a study, pointing to a growing microbusiness economy especially since the pandemic.
Read more in IT Brief
Canada
Gen Z Entrepreneurs Ditching University In Favour Of Starting Their Own Businesses - Muskoka411
A GoDaddy study revealed 61% of Gen Z Canadians are skipping college to start their own businesses, highlighting motivated young entrepreneurs needing support. GoDaddy data shows microbusinesses are struggling to implement new technologies like AI, underscoring difficulties smaller companies face with digital adoption.
Read more in Muskoka411 here
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SOURCE: GoDaddy
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