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GoDaddy Venture Forward Report | Summer 2023 | U.S. Edition: National Microbusiness Survey Results

GoDaddy Venture Forward Report | Summer 2023 | U.S. Edition: National Microbusiness Survey Results

Published 10-05-23

Submitted by GoDaddy

Venture Forward National Microbusiness Survey Results.

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 employees
  • 1 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. Charts showing microbusiness data.

U.S. Survey Key Takeaways

EMPLOYEE COUNT

“How many employees do you have, including yourself?”

  • 62%: 1 Employee
  • 33%: 2-9 Employees
  • 5%: 10+ Employees

INCOME BREAKDOWN

“What’s your average monthly revenue?”

  • 30%: Revenue <$500
  • 40%: Revenue $500 - $5K
  • 30%: Revenue $5K+

LAUNCH YEAR

“What year did you start?”

  • 60%: 2019 or Before
  • 11%: During 2020
  • 11%: During 2021
  • 18%: 2022 or After 
Getting a microbusiness started. Charts showing investment needed.

Getting a Microbusiness Started

69%: REQUIRED LESS THAN $5K TO START

  • 69%: <$5K
  • 11%: $5K - $10K
  • 13%: $10K - $50K
  • 6%: $50K+

“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 a microbusiness support a household.

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 $60K+/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 of a microbusiness.

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 $5K - $15K

  • Aug ‘22 Survey: 15%
  • Feb '23 Survey: 16%
  • Aug '23 Survey: 77%

Revenue $15K+

  • 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.

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?

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 boss
  • 32%: Support a cause/hobby I’m passionate about
  • 23%: Always dreamed of owning own business
  • 31%: Wanted/needed flexibility
  • 28%: Can have more success on my own
  • 26%: Looking for extra money

More than 10 Employees

  • 50%: I wanted to be my own boss
  • 1%: Support a cause/hobby I’m passionate about
  • 35%: Always dreamed of owning own business
  • 30%: Wanted/needed flexibility
  • 29%: Can have more success on my own
  • 26%: Looking for extra money

GoDaddy 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.

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