GoDaddy Venture Forward 2024 Annual Report | U.S. Edition: 2024 National Microbusiness Survey Results

Rhea-AI Summary

GoDaddy's Venture Forward 2024 Annual Report reveals significant insights about U.S. microbusinesses. The study shows that 93% of microbusinesses have fewer than 10 employees, with 55% being solo entrepreneurs. Income generation varies: 31% use it as main income, 40% as supplemental, and 29% report no income. Notable findings include:

- 51% are women-owned businesses, a 10% increase since August 2019
- 13% are owned by Black entrepreneurs, with 73% of these owned by Black women
- 44% believe GenAI will help them compete with larger businesses
- Top challenges include online marketing (39%) and access to financial capital (22%)

The report highlights that 75% of business owners who previously closed businesses persevered to create new ones, and despite economic uncertainties, 1 in 4 business owners with negative economic outlooks still plan to hire in the next 12 months.

NORTHAMPTON, MA / ACCESSWIRE / December 30, 2024 / GoDaddy
From serial entrepreneurship and resiliency to Gen Al use and closing equity gaps, microbusiness owners tell us who they are and what they care about.

As originally published by GoDaddy's Venture Forward research initiative

Venture Forward Survey Research Since 2019

• 4 Countries (AU, CA, UK, US)

• 50,000+ Customers

• 20+ Cities

• 5 Years of Research

US microbusinesses at-a-glance¹

Microbusinesses are small: 93% of microbusinesses have fewer than 10 employees

• 55% are solo entrepreneurs

• 45% have employees

Microbusinesses generate income.

• 31%: Main

• 40%: Supplemental

• 29%: No Income

41% of respondents in the U.S. turned their supplemental income into their main source of income.

About 1 in 3 currently own more than one business.

Microbusinesses can support a household.
Also known as "breadwinners"

• Over 1 in 3 contributes 51% or more to household income

Marketing and capital continue to rank as top challenges for new businesses¹

Ranking of top challenges when first starting a business:

• 39%: Marketing my business online (social media, ads, promotions, etc.

• 22%: Access to financial capital

• 21%: Marketing my business using traditional media (print, radio, TV, etc.)

• 18%: Getting my business website online effectively

• 15%: Taxes

• 14%: Finding employees, independent contractors or consultants with necessary skills

• 12%: Networking with other business owners

• 12%: Licensing/permits

• 11%:Affordable space

• 10%: Rising costs on wages and materials

Microbusinesses help close equity gaps¹

51% Women-Owned

• +10% since August 2019

31%: About 3 out of 10 women with a microbusiness are the breadwinners in their home.

• Breadwinners contribute 51% or more to their household income

13% of U.S. microbusinesses are owned by a Black entrepreneur, and of those, 73% are owned by Black women.

Motivations may vary, but all microbusiness owners are committed¹

"Why did you start your business?"

• 46%: To be my own boss

• 31%: Support a cause of hobby

• 31%: I can have more success on my own

• 30%: Flexibility with time

• 24%: Make extra money

• 21%: Dreamt of starting a business

• 19%: To contribute to my community

• 17%: Idea for new product/service

• 13%: To have fun

• 13%: Wanted a career change

Microbusiness owners agree: Life is better as an entrepreneur.

• 66%: Better

• 30%: No Different

• 4%: Worse

Serial entrepreneurs demonstrate resiliency, and it pays off¹

75% of business owners who previously closed or sold a business without a profit persevered to create new businesses.

4 out of 10 current business owners who previously didn't sell at a profit are now the breadwinners of their households.

• 61%: Household contribution is 50% or less

• 39%: Household contribution is 51% or more

Previous outcomes appear to affect whether to start new ventures full-time or as a side-hustle, but over one-third still jump all-in regardless.

I left my prior job to start my current business

• 52%: Sold last business for profit

• 34%: Sold last business at no profit or loss

I started my current business while still working elsewhere

• 33%: Sold last business for profit

• 47%: Sold last business at no profit or loss

Entrepreneurs are betting on themselves and creating jobs for others¹

1 out of 4 business owners with a negative outlook on the national economy still plan to hire employees in the next 12 months.

Positive outlook for my business vs. the economy

	Jul'20	Jul'21	Feb'22	Aug'22	Feb'23	Aug'23	Feb'24
Business	52%	69%	73%	60%	73%	72%	74%
Economy	28%	51%	48%	37%	32%	34%	39%

People who plan to hire in the next 12 months are driven by their business outlook not their economic outlook.

Positive Outlook

• 86%: Business

• 46%: Economy

Negative Outlook

• 2%: Business

• 29%: Economy

The South and Midwest are the most likely to hire additional employees over the next 12 months (28%), while the West is the least likely (20%).

• Northeast: (Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont)

• Midwest (Illinois, Indiana, lowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota Ohio, South Dakota, Wisconsin) South (Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia)

• West (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming)

Generative Al (GenAI) is picking up with microbusinesses¹

• 44% agree that GenAl will help them compete with larger businesses.

• 50% tried GenAl tools in the past few months.

• 25% tried GenAl for their business specifically.

GenAI use is connected with confidence and higher recent monthly¹ revenue

• 54%: Confident

• 29%: Neutral

• 17%: Not Confident

Microbusiness owners whose monthly revenue increased in the last six months are more likely to have used GenAl for their business.

Over the last six months, how has your business' average monthly revenue changed?

My revenue increased

• 28%: Not used GenAI

• 36%: Used GenAI

My revenue decreased

• 29%: Not used GenAI

• 24%: Used GenAI

Who is and isn't using GenAl?¹

Business owners tend to use GenAl for business more than personal use.

White

• 13%: Yes, for personal

• 24%: Yes, for my business

Black

• 21%: Yes, for personal

• 33%: Yes, for my business

Asian

• 22%: Yes, for personal

• 27%: Yes, for my business

Hispanic

• 14%: Yes, for personal

• 30%: Yes, for my business

Nearly 1 in 3 Black-owned microbusinesses use GenAl for business.

The majority of microbusiness owners who tried GenAl said they experienced a positive impact on their business. Those who haven't, however, most commonly cite the folowing five reasons for their hesitation:

• 38%: I'm not familiar with Al

• 32%: My business has no need for it

• 12%: I don't have time

• 5%: It would take too long to learn for it to be useful

• 3%: It costs too much money

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.

Contact GoDaddy Venture Forward at VentureForward@GoDaddy.com

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 percentage of microbusinesses are women-owned according to GoDaddy's 2024 Venture Forward report?

According to the report, 51% of microbusinesses are women-owned, showing a 10% increase since August 2019.

How many microbusiness owners use GenAI for their businesses in 2024?

25% of microbusiness owners have tried GenAI specifically for their business, with 50% having tried GenAI tools in general in the past few months.

What are the top 3 challenges facing new microbusinesses in 2024?

The top three challenges are: 1) Online marketing (39%), 2) Access to financial capital (22%), and 3) Traditional media marketing (21%).

What percentage of microbusiness owners plan to hire despite negative economic outlook?

1 out of 4 business owners (25%) with a negative outlook on the national economy still plan to hire employees in the next 12 months.

How many microbusiness owners have multiple businesses according to GoDaddy's 2024 report?

About 1 in 3 microbusiness owners (approximately 33%) currently own more than one business.

What percentage of Black-owned microbusinesses are operated by women?

73% of Black-owned microbusinesses are operated by women, with Black entrepreneurs owning 13% of total U.S. microbusinesses.