Microbusinesses Mean More Money for More Than Their Owners

Rhea-AI Summary

GoDaddy's Venture Forward research initiative found that counties with a microbusiness density change of 1 experienced an average increase of $489 in median household income. Microbusinesses have a significant impact on the economy, creating 6.7 jobs for every online microbusiness entrepreneur. Women make up almost half of microbusiness owners who contribute more than 51% of household income.

Positive

• Counties with a microbusiness density change of 1 experienced an average increase of $489 in median household income.
• Microbusinesses create 6.7 jobs for every online microbusiness entrepreneur.
• Almost half of microbusiness owners who contribute more than 51% of household income are women.

Negative

• None.

NORTHAMPTON, MA / ACCESSWIRE / July 31, 2023 / GoDaddy

As originally published by GoDaddy's Venture Forward research initiative

The top 5 counties (with 250,000+ in population) that experienced a notable change in microbusiness density include:

• Volusia, FL,
• Trenton, NJ,
• Burlington, NJ,
• Tulsa, OK ; and
• Montgomery, MD.

Venture Forward, a GoDaddy one-of-a-kind research initiative established in 2018 to quantify the impact of online microbusinesses on their local economies, defines microbusinesses as businesses with fewer than ten employees, a unique domain and an active website.

The Big Fact

Venture Forward research found, when analyzing the most recent U.S. Census data (2021), that counties with a microbusiness density (microbusinesses /100 people) change of 1, when holding other factors constant, also improved median household income by $489 in the area on average during the following year.

The Research

GoDaddy's Venture Forward research initiative analyzes more than 20 million online microbusinesses in the U.S. with fewer than ten employees, a unique domain and active website providing an unparalleled view into the attitudes, demographics, and needs of microbusiness entrepreneurs. The initiative's U.S. national survey started in 2019 and occurs twice a year, typically capturing responses from over 3,500 entrepreneurs per instance to identify and explore trends, as well as deliver insights to advocates of microbusiness entrepreneurs.

While these microbusinesses may be small, their impact on the U.S. economy is outsized. For example, for every one online microbusiness entrepreneur an additional 6.7 jobs are created at the county level.

Macro to Micro Impact

Not only are microbusinesses making waves in the wider economy, but they also have an impact at the household level. One in three microbusinesses contribute 51% or more to household income, and half of those households are generating more than $60,000 per year. And 19% of microbusiness owners said 76% or more of their household income comes from their business.

Who Are the Breadwinners?

There's a shift in who is contributing to household income. Almost half (49%) of microbusiness owners who contribute more than 51% of income to their family are women. This segment steadily increased over time, according to Pew Research. Since 1972, wives accounted for an 11% increase in being primary or sole breadwinners for their households, while the same Pew Research noted a 30% decrease in husbands being primary or sole breadwinners for their households.

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SOURCE: GoDaddy

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FAQ

What is the impact of microbusiness density change on median household income?

Counties with a microbusiness density change of 1 experienced an average increase of $489 in median household income.

How many jobs do microbusinesses create?

Microbusinesses create 6.7 jobs for every online microbusiness entrepreneur.

What is the demographic of microbusiness owners who contribute the most to household income?

Almost half of microbusiness owners who contribute more than 51% of household income are women.