Originally published by GoDaddy’s Small Business Research Lab
From Resiliency to Resolve: The State of Small Businesses
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 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. Below is a 2025 wrap-up report on their outlook, plans to hire, and where you can find them online and nationally.
Introduction
For over six years, the GoDaddy Small Business Research Lab (formerly Venture Forward) has reported annually on digital businesses with typically fewer than 10 employees. Our research has captured the growth in number of jobs they create, their aspirations as well as challenges, and how patterns have shifted across the country and where they are taking root and thriving. We invite you to explore the key findings, customize the interactive map, download the charts, and share this with anyone supporting or owning a small business.
Report Sections
- Small business growth by location and industry
- Updated economic impact
- Customer stories
- Key entrepreneur insights
Microbusinesses Are Growing
Resilience has been a defining trait of small businesses, and in 2025, resolve stands out just as strongly.
In Australia, small and microbusinesses continue to expand in number and influence all over the country. Last year’s report highlighted the steady rise of entrepreneurs even in more remote areas – and this year, that momentum persists. Many of the entrepreneurs represented here are running relatively young businesses, often less than a decade old, and their ability to operate without a physical storefront has given them the flexibility to adapt quickly and seize new opportunities. These patterns align with survey insights from over 1,200 small business owners this year, and their steadfast focus, navigation of financial challenges, and positive business impact from using AI.
The chart below is a ranking of provinces by the highest microbusiness counts.
Strong activity is led by more populated areas, entrepreneurship is also accelerating fast in some more remote areas. Density shows how many microbusinesses exist per 100 people. It gives us a clearer way to compare large and small Statistical Area Level 4s (SA4s).
Top 10 Statistical Area Level 4s (SA4) By Microbusiness Count
| SA4 Name |
Active Microbusinesses Q3 ’25 |
1 year Microbusiness Count % Growth |
Microbusiness Density Q3 ’25 |
| Sydney – City and Inner South |
44,768 |
149% |
13.2 |
| Sydney – Eastern Suburbs |
37,923 |
219% |
14.4 |
| Melbourne – Inner |
31,412 |
23% |
4.9 |
| Gold Coast |
22,334 |
34% |
3.4 |
| Melbourne – South East |
17,517 |
33% |
2.0 |
| Melbourne – West |
17,156 |
39% |
1.9 |
| Brisbane Inner City |
16,810 |
30% |
5.5 |
| Sydney – Parramatta |
16,200 |
38% |
3.3 |
| Melbourne – Inner South |
14,496 |
34% |
3.4 |
| Sydney – North Sydney and Hornsby |
13,999 |
31% |
3.3 |
Source: GoDaddy Small Business Research Lab 2025
Each year, the GoDaddy Small Business Research Lab reports on changes in e-commerce activity, including revenue, order volume, or number of sellers, based on data self-reported by website owners. The findings surface notable shifts in demand and participation, highlighting which products and services are drawing more suppliers, such as Marketing and Photography in 2025. These rankings show which industries saw the biggest year-over-year growth in entrepreneurs selling online.
Top 5 Ecommerce Industries in 2025
Ranked by growth in entrepreneurs
- Rank #1: Marketing: +100%
- Rank #2: Public Space: +88%
- Rank #3: Photography: +45%
- Rank #4: Media: +44%
- Rank #4: Religion: +43%
Customer Stories
Corrin Elliott & Roxanne Coutts
Barkery Deluxe Dog Treats, BARKERYDELUXEDOGTREATS.COM
Corrin and Roxane began Barkery Deluxe Dog Treats as a weekend hobby — just two busy mums baking all-natural dog treats in their kitchens. Their first market stall was a surprising hit, and soon they expanded into pop-ups and wholesale to vet clinics and cafés across Melbourne. As demand grew, they scaled up: moving production into a proper facility, obtaining a food-safety licence, and launching an online store. When retail shut down during the lockdowns, their website kept orders flowing — and saved the business. What began as a small side hustle turned into a thriving, nationwide brand known for quality, natural treats made with care.
Emma McLeavy
Jo + Co Hampers & Floral Design, joandcohampers.com.au
After more than a decade as a commercial banker helping other small businesses, Emma McLeavy decided to pursue her own passion. While on maternity leave, she launched Jo + Co Hampers & Floral Design — a bespoke hamper service filled with local produce, artisanal goods, and carefully chosen floral gifts. She built the website herself, and from her home she now balances packaging, family life, and building the business. What started as a side-hustle evolved into a growing venture. Emma plans to expand into floristry, firmly believing that “if you’re passionate about something, you just have to go for it.”
Key Entrepreneur Insights
Since 2019, GoDaddy’s Small Business ResearchLab has surveyed over 60,000 global microbusiness owners with a GoDaddy domain and active website and over 3,000 in the UK in the last two years. Their answers give us a real view of how people are navigating changing conditions, and often offer an early signal of what’s ahead. Their responses cut through broader noise and provide a clearer, bottom-up read on the grassroots economy.
The below chart captures their outlook for their business revenue compared to the national economy over the second half of 2025.
Positive outlook for my business vs. the economy
|
Business |
Economy |
|
| Nov ’23 |
71% |
25% |
| Jul ‘24 |
68% |
30% |
| Jul ’25 |
64% |
32% |
Source: GoDaddy Small Business Research Lab Australia National Survey. July 2025 (N-= 2,256)
Microbusinesses in Australia are, by design, small. 86% have fewer than ten employees, and over a quarter are run by solo entrepreneurs. Many owners are still building toward full-time operations, with 34% saying their business is their main source of income, 35% using it as supplemental income, and 31% reporting that it currently generates no income, which may be due to the recent start of the business.
Over half are first-time founders, and about 1 in 4 currently own more than one business. 38% previously sold a business at a profit or broke-even. This shows how strongly entrepreneurial ambition is continuing in Australia, with people experimenting, launching, and growing multiple ideas even in a shifting economic landscape. This is a community that is both resilient and resolute.
Microbusinesses are small
- 93%: Microbusinesses with fewer than 10 employees
- 56% are solo entrepreneurs
Microbusinesses generate income
- 29%: Main
- 40%: Supplemental
- 32%: No Income
About 1 in 4 currently own more than one business
61% are first-time small business owners.
Source: GoDaddy Small Business Research Lab National AU Survey, July 2025; n=~1,200+
While broader economic conversations leaned toward caution in 2025, micro-and small business owners delivered a quieter, more telling signal: they believe in their path and they’re planning for growth. Australian microbusiness owners continue to show a grounded and moderate outlook for their financial turnover in the second half of 2025. After 62% had a steady or profitable first half of the year. 50% anticipate an increase, and 26% expect no change.
Expectations for financial turnover increase in 2025 have been mostly positive
- 26%: No Change
- 50%: Positive
First half of 2025 was steady or profitable for most small businesses in Australia
Monthly revenue change Jan-July
- 24%: Lower
- 38%: No Change
- 24%: Higher
Their ambition, hard work and independence has made them successful, but recent economic concerns have made them more self-aware, cost-sensitive and income-driven having started their ventures using their personal savings. 51% of entrepreneurs cited having enough money to pay rent, wages, advertising, etc. as the primary cause of stress from their business, and that is on top of the fact that 71% of entrepreneurs fund their small business from personal savings when first starting out. Less than half (41%) of microbusiness owners would say they have a work-life balance.
Under these financial pressures and with the goal of optimizing time and stress, they are turning more to AI to do more content creation and summaries as well as strategy for marketing or operations.
Overall, AI adoption has accelerated. Over one-third (46%) now use AI for their business, and small business owners say AI delivers value in several key areas:
- 73%: Writing content for me
- 65%: Summarizing information or text
- 56%: Generating recommendations for marketing or operations
And when it comes to what brings these entrepreneurs the most joy, it’s predominantly creating their own source of income (26%), followed by connecting with customers (16%). They also have strong conviction in the return on investment of having a venture, with 1 in 4 believing their small business is the best way to fund their future and retirement, above stocks and retirement funds.
Al use has a positive impact on small businesses
62% of entrepreneurs report a positive impact from Al on their business
Financial and time pressures top the list as causes of stress for entrepreneurs
- 51%: Financial stress/limited cash
- 41%: Work-Life balance (not enough time)
- 24%: Competition from other businesses
- 23%: Customer issues
- 17%: Technology/Equipment
- 11%: Vendors/Partnerships stress
- 8%: Employee issues
25%: 1 in 4 believe income from their small business is the most lucrative way to fund their future and retirement
The main source of capital when starting a small business in Australia
- 71%: Personal savings
- 8%: No capital needed
- 4%: Loan from friends and/or familyNo capital needed
- 4%: Loan from bank/credit union
- 3%: Equity investors
- 1%: Online startup campaign or crowdfunding
Source: GoDaddy Small Business Research Lab National AU Survey, July 2025; n=~1,200+
As far as connecting with customers, their approach to online presence reflects another interesting trend. 42% point to their website as the main place where customers can buy from them, followed by 26% on social media and 20% in a storefront or office.
For those who don’t sell on their website, an online presence still plays a central role: 65% view it as critical for marketing and credibility, and 42% rely on it for customer communications. And despite the reach a website can provide, many operate with a strong local focus. Many say their customers are based within their state or even suburb, offering meaningful proximity to the people they serve and, in some cases, insulating them from certain global pressures.
Online presence leads as far as where small businesses conduct business and services
- 42%: Website
- 26%: Social Media
- 20%: Storefront and Office
What entrepreneurs use their website for the most
- 65%: Marketing & Credibility
- 44%: Sales Orders
- 42%: Communications
- 31%: Sales Orders
- 23%: Bookings
- 8%: Operations
Source: GoDaddy Small Business Research Lab National AU Survey, July 2025; n=~1,200+
Microbusinesses are focused locally
- 4 out of 10 say most of their customers live within their suburb or state.
- 83% of small business owners serve only domestic customers.
About GoDaddy Small Business Research Lab
A research initiative launched in 2018 that quantifies the growth and economic impact of over 25 million global online microbusinesses, and provides a unique view into the attitudes, demographics, and needs of these entrepreneurs.
To explore our research further, specifically all the reports since 2020, we’ve also introduced a CustomGPT experience through ChatGPT at research.godaddy/gpt that allows for deeper analysis and discovery.
