Originally published on GoDaddy LinkedIn
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2025 Wrap-Up from the GoDaddy Small Business Research Lab
Welcome to our Q4 update and annual wrap-up on small and microbusiness activity across the United States, United Kingdom, Canada and Australia!
This has been an eventful year, and as we’re all ready to wind-down before 2026 begins, let’s jump right into our updates on the entrepreneurs with a digital presence and majority having fewer than 10 employees (over half solo entrepreneurs). There’s a lot to share about their latest outlook and growth plans, where they are online and internationally, how they’re using AI, and more.
Warmly,
Alexandra Rosen | Economist and Global Head, GoDaddy Small Business Research Lab
Data Hub – Which Industries and States grew the most in 2025?
The Microbusiness Data Hub has been refreshed through September 2025, capturing the latest shifts in entrepreneurship, geographically and by industry through our e-commerce data, excerpts below:
Top 5 Ecommerce Industries in 2025
Ranked by growth in entrepreneurs
- Rank #1: Software & IT: +23%
- Rank #2: Auto: +19%
- Rank #3: Home Services: +18%
- Rank #4: Travel: +17%
- Rank #4: Religion: +16%
excerpt from U.S. edition of the GoDaddy Small Business Research Lab Annual Report
Top 10 States By Microbusiness Count
| State |
Active Microbusinesses Q3 ’25 |
1 Year Microbusiness Count Change |
Microbusiness Density Q3 ’25 |
| California |
3,911,254 |
1% |
9.9 |
| Florida |
2,472,670 |
4% |
10.6 |
| Texas |
1,936,827 |
4% |
6.2 |
| New York |
1,804,154 |
2% |
9.1 |
| Georgia |
786,792 |
2% |
7.0 |
| Illinois |
782,117 |
1% |
6.2 |
| Washington |
723,217 |
3% |
9.1 |
| Pennsylvania |
717,586 |
2% |
5.5 |
| New Jersey |
684,977 |
2% |
7.2 |
| Arizona |
638,607 |
1% |
8.4 |
excerpt from U.S. edition of the GoDaddy Small Business Research Lab Annual Report
2025 Annual Report – From Resiliency to Resolve: The State of Small and Microbusinesses is live!
Small businesses have always been resilient. This year we are seeing something else too. Entrepreneurs are moving forward with intention and conviction. They are not just adapting, but they are committed, and staying present.
Over 70% of U.S. small business owners are confident they will achieve their definition of success in their lifetime. With AI reshaping how they grow, the outsized local economic impact is scaling faster than ever. Read our 2025 wrap-up report on their outlook, plans to hire, and where you can find them online and nationally.
Link: https://www.godaddy.com/research/explore-the-data/annual-report-2025/
Majority have neutral to positive expectations of Nov-Dec 2025 sales compared to 2024
- Lower: 26%
- No Change: 37%
- Higher: 29%
Small business outlook on revenue over the next 6 months is cautiously optimistic
- Negative: 24%
- Positive or No Change: 66%
excerpt from U.S. edition of the GoDaddy Small Business Research Lab Annual Report
Majority of entrepreneurs have changed how they define success since childhood
- 84% say their definition has changed from slightly to completely
- 47% completely agree
- 37% yes, slightly
Definitions of success by entrepreneurs
- 53%: Living comfortable lifestyle with financial security
- 43%: Freedom to pursue passions/goals
- 37%: Feeling happy with life
- 27%: Being able to pay off debt
- 26%: Being own boss
- 21%: Having something to leave children
- 21%: Impacting community
- 17%: Fulfilling career
- 13%: Owning my own home
72%: Seventy-two percent of entrepreneurs feel confident they’ll achieve success in their lifetime.
excerpt from U.S. edition of the GoDaddy Small Business Research Lab Annual Report
Introducing two new public GPTs on ChatGPT
One annual report is great, but how about all of them since 2020? This quarter we are introducing a new way to access and interact with our data: GoDaddy has published its first public GPT on ChatGPT. It gathers all of our published reports since 2020, including our special editions of research with UCLA Anderson Forecast and Frontier Economics, into a single, conversational tool.
You can explore regional differences, long-term impact and industry trends, survey results spanning 5 years, and the stories that sit beneath the data. Search “GoDaddy” under the Explore section of ChatGPT or use this link: research.godaddy/gpt
We’ve also released another GPT just for our US data, accessible here: http://research.godaddy/data. It leverages an API to parse the data, which you’ll need to approve once, and we invite you to explore it and even try to break it! Welcome your thoughts on it. (See images above)
Economic Impact Update from the United Kingdom
Since 2023, GoDaddy has partnered with Frontier Economics to capture the outsized impact made by UK microbusinesses on their local economies. In 2025, UK microbusinesses continued to boost local economies at higher rates than before.
Last year, a 10% rise in small digital businesses was linked to an average pay increase of about £320 for full time workers. This year, that figure has grown to £360.
The link with jobs has also strengthened. Each additional small digital business for every thousand people is now associated with about 5 extra jobs in that area.
The research also finds that digital business growth is good for productivity. A 10% increase in small digital businesses is linked to a .37% rise in GDP per capita. For a typical local authority of 200,000 people, this would translate to over £26 million in additional GDP.
Behind every data point is a person choosing to build something. Blossom and Grow Florist in Harlow is one example. Owner Rachel Brennan used digital tools to reach more customers, support her family and stay closely connected to her community.
Recent Press
United States
Stadium District Powers Small Business Momentum Denver is emerging as one of the most active small business ecosystems in the country, with areas around Empower Field showing steady economic gains supported by visitor foot traffic.
United Kingdom
Small Business Density Doubles in Tottenham New reporting shows that small business creation in Tottenham has doubled over four years as major events bring more people and investment into the area.
United Kingdom
Remote Island Business Thrives With Global Customers A Scottish island business is growing through domain strength, website visibility and social reach. It shows how digital tools help even the most remote entrepreneurs serve customers worldwide.
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