GoDaddy Venture Forward Report | Summer 2023 | U.S. Edition: National Microbusiness Survey Results
Positive outlook for microbusinesses with 73% having a positive outlook compared to only 32% for the broader economy. 1 in 7 microbusinesses started since the pandemic were founded by black women. Monthly revenue from microbusinesses has grown over the last year. 28% of microbusiness owners invest their first dollars into creating a website. 1 in 3 microbusinesses contribute 51% or more to household income. Cash on hand for microbusinesses is 48% with 1 month or more. Optimistic entrepreneurs have long-term ambitions and tend to dream bigger. Motivations for entrepreneurship are consistent regardless of business size or long-term goal.
Positive
Positive outlook for microbusinesses with 73% having a positive outlook compared to only 32% for the broader economy. Monthly revenue from microbusinesses has grown over the last year. 1 in 3 microbusinesses contribute 51% or more to household income. Optimistic entrepreneurs have long-term ambitions and tend to dream bigger.
10/04/2023 - 10:15 AM
NORTHAMPTON, MA / ACCESSWIRE / October 4, 2023 / GoDaddy
As originally published by GoDaddy's Venture Forward research initiative
National Microbusiness Survey Results
Since 2019, Venture Forward has surveyed over 30,000 online entrepreneurs. Ahead are highlights from the survey of U.S. microbusinesses in February 2023. It also features highlights from a fresh GoDaddy survey of small businesses on their perceptions of the American Dream.
2023 National Survey
In February 2023, Venture Forward completed its sixth national survey of 3,600+ entrepreneurs who own microbusinesses. These are a few highlights, and the full report can be found here .
95% of microbusinesses have less than 10 employees1 in 7 microbusinesses started since the pandemic were founded by black women (fastest-growing segment)73% have positive outlook for their business (compared to only 32% for the broader economy)U.S. Survey Key Takeaways
EMPLOYEE COUNT
"How many employees do you have, including yourself?"
62% : 1 Employee33% : 2-9 Employees5% : 10+ EmployeesINCOME BREAKDOWN
"What's your average monthly revenue?"
30% : Revenue <$500 40% : Revenue $500 - $5 K30% : Revenue $5 K+LAUNCH YEAR
"What year did you start?"
60% : 2019 or Before11% : During 202011% : During 202118% : 2022 or AfterGetting a Microbusiness Started
69% : REQUIRED LESS THAN $5 K TO START
69% : <$5 K11% : $5 K - $10 K13% : $10 K - $50 K6% : $50 K+"How difficult was it for you to access the capital you needed to start?"
Very Easy: 22% Easy: 6% Moderately Easy: 8% Not Difficult: 34% Moderately Hard: 8% Hard: 7% Very Hard: 15% Twenty-eight percent of microbusiness owners invest their first dollars into creating a website.
Can Microbusinesses Support a Household? 1 in 3 microbusinesses contribute 51% or more to household income*
"Approximately what proportion of your household income comes from your microbusiness?"
% of Household Income: 0% -25%
Entire Sample: 54 % Pre-Pandemic: 43% Post-Pandemic: 67% % of Household Income: 26% -50%
Entire Sample: 17% Pre-Pandemic: 19% Post-Pandemic: 14% % of Household Income: 51% -75%
Entire Sample: 10% Pre-Pandemic: 13% Post-Pandemic: 6% % of Household Income: 76% -100%
Entire Sample: 19% Pre-Pandemic: 25% Post-Pandemic: 13% Half of those contributing 51% or more to household income are generating around $60 K+/year.
49% : Women make up almost half of those contributing over 51% to household income.
Are microbusinesses financially stable?
Cash on hand
48% : 1 Month+*38% : 1 Month or Less*Source: GoDaddy Venture Forward National Survey. February 2023 (N=3,609)
TAKEAWAYS
Entrepreneurs tend to have a more positive outlook on the next 6 months for their own businesses than the economy as a whole. This finding has been true since we started asking in 2020.
Another positive trend emerged as shown on the right: the monthly revenue from a typical microbusiness grew over the last year.
Upward Trajectory in Outlook and Revenue Performance
Positive outlook for my business vs. the economy1
Jul '20
Business: 52% Economy: 28% Jul '21
Business: 69% Economy: 51% Feb '22
Business: 73% Economy: 48% Aug '22
Business: 60% Economy: 37% Feb '23
Business: 73% Economy: 32% Aug '23
Business: 72% Economy: 34% Population of respondents reporting monthly revenue earned from their microbusinesses2
Revenue $ <5K
Aug ‘22 Survey: 72% Feb '23 Survey: 71% Aug '23 Survey: 67% Revenue $5 K - $15 K
Aug ‘22 Survey: 15% Feb '23 Survey: 16% Aug '23 Survey: 77% Revenue $15 K+
Aug ‘22 Survey: 14% Feb '23 Survey: 13% Aug '23 Survey: 15% Source: GoDaddy Venture Forward National Surveys: July 2020-August 2023. 1. "What is your overall expectation for your business or organization over the next 6 months?"; "What is your overall expectation for the national economy over the next 6 months?" 2. "What is the average monthly revenue for this business?"
A Positive Outlook Is Directly Related to Long-Term Ambition
Optimists are less rattled by recent revenue performance when it comes to long-term aspirations. They also tend to dream bigger.
Optimistic Entrepreneurs' Aspirations
Stay Solo: +4% Grow: Small-Mid: -3% Grow: Large: 0 Pessimistic Entrepreneurs' Aspirations
Stay Solo: +16% Grow: Small-Mid: -17% Grow: Large: 0 Original question: "Which of the following statements best describes your ambitions for your business in the long term?" Source: GoDaddy Venture Forward National Survey. February 2023 (N=3,609).
Do Microbusinesses Differ From Small Businesses?
Motivations for entrepreneurship are consistent regardless of size of business or long-term goal.
39% said "being my own boss" is achieving the American Dream, yet just 6% started for that reason.
Comparison
"What are your long-term aspirations for your business?"
LESS THAN 10 EMPLOYEES
Small Business (33% ) Mid-Size (16% ) Corporate (8% ) GREATER THAN 10 EMPLOYEES
Small Business (30% ) Mid-Size (38% ) Corporate (22% ) "What are the top reasons you started your business?"
Fewer than 10 Employees
42% : I wanted to be my own boss32% : Support a cause/hobby I'm passionate about23% : Always dreamed of owning own business31% : Wanted/needed flexibility28% : Can have more success on my own26% : Looking for extra moneyMore than 10 Employees
50% : I wanted to be my own boss1% : Support a cause/hobby I'm passionate about35% : Always dreamed of owning own business30% : Wanted/needed flexibility29% : Can have more success on my own26% : Looking for extra moneyGoDaddy Venture Forward Report | Summer 2023 | U.S. Edition
This report is powered by the latest data from Venture Forward , a GoDaddy research initiative to quantify the presence and impact of over 21 million online microbusinesses on their local economies, while shining a light on the entrepreneurs behind them. Our goal is to empower anyone who advocates for entrepreneurs with robust data and insights that can't be found elsewhere.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
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