Small business owners are proving their resilience, with 75% relaunching new businesses after setbacks, according to GoDaddy’s 2024 Annual Venture Forward report. Despite economic uncertainty, these entrepreneurs persevere, with 39% of new businesses becoming the main source of income for their families.
Small business owners continue to show confidence in their abilities, even amid economic challenges. While only 39% express confidence in the country’s economy, 74% remain optimistic about their business prospects in the next six months. Many make decisions based on business needs rather than broader economic conditions. Notably, even among those with a negative view of the economy, one in four plans to hire within the next year.
The Big Impact of Small Businesses on the American Economy
Small businesses, often small startups, are important to the US economy:
- Side Hustles to Full Business: 34% of small businesses start as side projects, more than 70% use an online presence to drive growth.
- Creating a Job: At the regional level, each small business creates an average of seven jobs, up from two in 2020.
- Community Support: 58% of small business owners report that their businesses benefit their local communities.
Progress in testing and representation
The state of small business ownership is improving, with significant progress in diversity and representation:
- Women’s Identity: Women now own 51% of small businesses, a significant increase from 41% in 2019. About one-third of those female entrepreneurs work as the main breadwinners of their households.
- Black Owned Businesses: The growth of black-owned businesses continues, with women driving much of this expansion.
- Senior Entrepreneurs: Entrepreneurs age 55 and older now account for 19% of small business owners, reflecting the diversity of age, gender, and ethnicity in the sector.
“Obstacles often lead to new startups and new opportunities,” said Alexandra Rosen, Global Head of GoDaddy Venture Forward. “These entrepreneurs show how patience can turn into profit and impact, not only in their homes but also in their communities. Small businesses are always important to the local economy and are the heart of the neighborhood.”
GoDaddy’s Venture Forward initiative analyzes more than 20 million online businesses with a digital presence, mostly employing fewer than ten people. As of 2018, Venture Forward has surveyed more than 50,000 entrepreneurs, providing comprehensive insights into the microbusiness ecosystem.
