GoDaddy Venture Forward 2024 Annual Report | U.S. Edition: Macroeconomic Research

Rhea-AI Summary

GoDaddy's Venture Forward 2024 Annual Report reveals significant correlations between migration patterns and microbusiness growth in the US. Research shows that new residents significantly impact county microbusiness density, with international migrants having the largest effect (.42 increase in microbusinesses per 100 people for each 1% of international population).

The study also highlights findings from the UCLA Anderson Forecast Microbusiness Activity Index (MAI), showing that microbusinesses positively impact local economies. Key findings indicate that a one-point increase in the infrastructure index corresponds to 89 new jobs in a county, and each additional entrepreneur correlates with 7.4 local jobs. The research noted increased MAI growth driven by Generative AI adoption, enabling smaller businesses to compete more effectively.

Positive

• Each additional entrepreneur correlates with creation of 7.4 local jobs
• One-point increase in infrastructure index creates 89 new county jobs
• Positive correlation between microbusiness participation and state GDP growth
• Increased MAI growth driven by Generative AI adoption

Negative

• None.

New insights from GoDaddy's Venture Forward regressions and UCLA's Microbusiness Activity Index annual update.

NORTHAMPTON, MA / ACCESSWIRE / January 7, 2025 / GoDaddy

As originally published by GoDaddy's Venture Forward research initiative

New Venture Forward research

GoDaddy Venture Forward conducted an in-house analysis to assess: with all the moves that happened during the pandemic, did areas that saw greater migration also see greater impact on entrepreneurship?

The answer was yes! Analyzing US.. Census data from 2022 and the associated Venture Forward microbusiness data in 2023, a clear trend emerged (see the next page). Residents who moved from other counties, states and countries impacted the county microbusiness density. The greater the distance moved, the greater the impact as well.

Research shows that when microbusiness density increases, it can drive up household median incomes, lower unemployment, and create new jobs. So, more microbusinesses leads to greater economic outcomes, and one path to that is more new residents.

New residents lead to more microbusinesses^*

.03*: Increase in microbusinesses per 100 people for each %1 of the population who lived in a different county a year ago.

• *only when subset to counties < 15 microbusinesses per 10 people

.09: Increase in microbusinesses per 100 people for each1% of the population who lived in a different state a year ago.

.42: Increase in microbusinesses per 100 people for each 1% of the population who lived in a different country a year ago.

The model for regression controlled for 23 variables, including: Broadband access, Race, Industry employment figures, Age cohorts, and Education levels. It generated an R-squared of.59

The greater the move, the greater the impact on counties¹

Where did new residents come from in 2022?	% Effect Size of Adding 1% New Residents on MD	Impact of +1% on Microbusiness Density	2023 Average Microbusiness Density (in counties with 750k+ population)	Average % of Residents by category (in counties with 750k+ population)
Residents who moved from another county, same state	.24%	.03	12.4	2.7%
Residents who moved from another state	.73%	.09	12.4	2.2%
Residents who moved from another country	3.39%	.42	12.4	.8%

The counties with the greatest migration also have some of the highest concentrations of microbusinesses

Top Migration Counties (750k+ population)
County	% Residents 1 year or less 2022	Microbusiness Density* 2023
Clark, NV	4.4%	20.7
Honolulu, HI	4.3%	6.2
Mecklenburg, NC	4.2%	12.7
Fulton, GA	4.1%	21.5
New York, NY	3.9%	34.6
Average	4.2%	19.1
*Microbusiness Density is defined as the number of microbusinesses per 100 people

Bottom Migration Counties (750k+ population)
County	% Residents 1 year or less 2022	Microbusiness Density* 2023
Nassau, NY	0.5%	12.6
Bronx, NY	0.6%	3.3
Queens, NY	0.7%	6.2
Suffolk, NY	0.7%	10.8
Sacramento, CA	0.9%	8.3
Average	0.7%	8.2
*Microbusiness Density is defined as the number of microbusinesses per 100 people

Partner economic research

UCLA Anderson Forecast Microbusiness Activity Index 2024 Annual Update

Introduction

In July 2021, the UCLA Anderson Forecast, in partnership with GoDaddy, launched a new Microbusiness Activity Index (MAI) that analyzes the formation, growth, and dynamics of online microbusinesses, using data provided by GoDaddy.

The MAI demonstrates a strong correlation with key economic indicators, including employment, unemployment, GDP, and offers timely insights into local economic activity.

The report, featuring commentary, analysis, and the latest indices, continues to be published annually.

What follows are key excerpts from the 2024 report.
Read the full report

Highlights from this year's report

Key findings by UCLA economists, William Yu and Thomas Ash:

• Recent months have seen a rise in the MAl, driven by increased microbusiness engagement and Generative Al tool adoption, enabling
  entrepreneurs with limited resources to boost productivity and compete effectively with larger companies.

• After controlling for various factors, we find evidence that the MAl, and its sub-indices, the infrastructure index and participation index, are associated with local job growth. Aone-point increase in the infrastructure index corresponds to an increase of 89 jobs in a county.

• On average, we find evidence that an additional entrepreneur is correlated with an increase of 7.4 local jobs. Microbusiness participation also contributes positively to local labor force participation.

• There is a correlation between the participation index by state and
  state GDP growth, in which the horizontal axis represents the change of the state participation index between March 2023 and March 2024 and the vertical axis represents the state real GDP growth from 2023Q1to 2023Q4.

Download the full report.

GoDaddy Venture Forward 2024 Annual Report | U.S. Edition

This report is powered by the latest data from Venture Forward, GoDaddy's research initiative to quantify the presence and impact of over 20 million global online microbusinesses on their local economies, while shining a light on the entrepreneurs behind them.

We're here to support entrepreneurs.

¹Source: GoDaddy Venture Forward U.S. National Survey, February 2024 (N=3,565)

View additional multimedia and more ESG storytelling from GoDaddy on 3blmedia.com.

Contact Info:
Spokesperson: GoDaddy
Website: https://www.3blmedia.com/profiles/godaddy
Email: info@3blmedia.com

SOURCE: GoDaddy

View the original press release on accesswire.com

FAQ

What is the impact of international migration on microbusiness density according to GoDaddy (GDDY) 2024 report?

According to GoDaddy's 2024 Venture Forward report, for each 1% of population who lived in a different country, there is a 0.42 increase in microbusinesses per 100 people.

How many jobs does each new entrepreneur create according to GoDaddy's (GDDY) 2024 research?

According to the 2024 report, each additional entrepreneur is correlated with an increase of 7.4 local jobs.

Which US counties showed the highest microbusiness density in GoDaddy's (GDDY) 2024 report?

Among top migration counties, New York, NY had the highest microbusiness density at 34.6, followed by Fulton, GA at 21.5, and Clark, NV at 20.7 microbusinesses per 100 people.

How does the UCLA Anderson Forecast MAI correlate with local economic growth in the 2024 GDDY report?

The MAI shows strong correlation with key economic indicators including employment, unemployment, GDP, and local economic activity, with a one-point increase in infrastructure index corresponding to 89 new county jobs.