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GoDaddy Venture Forward 2024 Annual Report | U.S. Edition: Macroeconomic Research
New insights from GoDaddy's Venture Forward regressions and UCLA's Microbusiness Activity Index annual update.
GoDaddy Venture Forward 2024 Annual Report | U.S. Edition: Macroeconomic Research
New insights from GoDaddy's Venture Forward regressions and UCLA's Microbusiness Activity Index annual update.
Published 01-08-25
Submitted by GoDaddy
As originally published by GoDaddy’s Venture Forward research initiative
New Venture Forward research
GoDaddy Venture Forward conducted an in-house analysis to assess: with all the moves that happened during the pandemic, did areas that saw greater migration also see greater impact on entrepreneurship?
The answer was yes! Analyzing US.. Census data from 2022 and the associated Venture Forward microbusiness data in 2023, a clear trend emerged (see the next page). Residents who moved from other counties, states and countries impacted the county microbusiness density. The greater the distance moved, the greater the impact as well.
Research shows that when microbusiness density increases, it can drive up household median incomes, lower unemployment, and create new jobs. So, more microbusinesses leads to greater economic outcomes, and one path to that is more new residents.
New residents lead to more microbusinesses*
.03*: Increase in microbusinesses per 100 people for each %1 of the population who lived in a different county a year ago.
- *only when subset to counties < 15 microbusinesses per 10 people
.09: Increase in microbusinesses per 100 people for each1% of the population who lived in a different state a year ago.
.42: Increase in microbusinesses per 100 people for each 1% of the population who lived in a different country a year ago.
The model for regression controlled for 23 variables, including: Broadband access, Race, Industry employment figures, Age cohorts, and Education levels. It generated an R-squared of.59
The greater the move, the greater the impact on counties1
| Where did new residents come from in 2022? | % Effect Size of Adding 1% New Residents on MD | Impact of +1% on Microbusiness Density | 2023 Average Microbusiness Density (in counties with 750k+ population) | Average % of Residents by category (in counties with 750k+ population) |
| Residents who moved from another county, same state | .24% | .03 | 12.4 | 2.7% |
| Residents who moved from another state | .73% | .09 | 12.4 | 2.2% |
| Residents who moved from another country | 3.39% | .42 | 12.4 | .8% |
The counties with the greatest migration also have some of the highest concentrations of microbusinesses
Top Migration Counties (750k+ population) | ||
| County | % Residents 1 year or less 2022 | Microbusiness Density* 2023 |
| Clark, NV | 4.4% | 20.7 |
| Honolulu, HI | 4.3% | 6.2 |
| Mecklenburg, NC | 4.2% | 12.7 |
| Fulton, GA | 4.1% | 21.5 |
| New York, NY | 3.9% | 34.6 |
| Average | 4.2% | 19.1 |
| *Microbusiness Density is defined as the number of microbusinesses per 100 people | ||
Bottom Migration Counties (750k+ population) | ||
| County | % Residents 1 year or less 2022 | Microbusiness Density* 2023 |
| Nassau, NY | 0.5% | 12.6 |
| Bronx, NY | 0.6% | 3.3 |
| Queens, NY | 0.7% | 6.2 |
| Suffolk, NY | 0.7% | 10.8 |
| Sacramento, CA | 0.9% | 8.3 |
| Average | 0.7% | 8.2 |
| *Microbusiness Density is defined as the number of microbusinesses per 100 people | ||
Partner economic research
UCLA Anderson Forecast Microbusiness Activity Index 2024 Annual Update
Introduction
In July 2021, the UCLA Anderson Forecast, in partnership with GoDaddy, launched a new Microbusiness Activity Index (MAI) that analyzes the formation, growth, and dynamics of online microbusinesses, using data provided by GoDaddy.
The MAI demonstrates a strong correlation with key economic indicators, including employment, unemployment, GDP, and offers timely insights into local economic activity.
The report, featuring commentary, analysis, and the latest indices, continues to be published annually.
What follows are key excerpts from the 2024 report.
Read the full report
Highlights from this year's report
Key findings by UCLA economists, William Yu and Thomas Ash:
- Recent months have seen a rise in the MAl, driven by increased microbusiness engagement and Generative Al tool adoption, enabling
entrepreneurs with limited resources to boost productivity and compete effectively with larger companies. - After controlling for various factors, we find evidence that the MAl, and its sub-indices, the infrastructure index and participation index, are associated with local job growth. Aone-point increase in the infrastructure index corresponds to an increase of 89 jobs in a county.
- On average, we find evidence that an additional entrepreneur is correlated with an increase of 7.4 local jobs. Microbusiness participation also contributes positively to local labor force participation.
- There is a correlation between the participation index by state and
state GDP growth, in which the horizontal axis represents the change of the state participation index between March 2023 and March 2024 and the vertical axis represents the state real GDP growth from 2023Q1to 2023Q4.
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.
1Source: GoDaddy Venture Forward U.S. National Survey, February 2024 (N=3,565)
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