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.
More than half of the entrepreneurs represented here launched less than 10 years ago. Last year’s report captured the growth that accelerated in rural areas and regained traction in major cities. Findings from 2025 show that momentum continuing, with entrepreneurs adapting to changing market conditions, embracing AI and changing technology, and growing in number across all types of communities in the United States. These patterns align with survey insights from nearly 5,000 small business owners this year, and their optimistic focus, plans for growth, and steadfastness.
The chart below is a ranking of states by the highest microbusiness counts.
While strong activity is led by big cities, smaller communities are gaining momentum too. Florida, Arizona, New Jersey, and California continue to stand out with growth in both the number of businesses and the density of activity. Density shows how many microbusinesses exist per 100 people. It gives us a clearer way to compare large and small states.
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
|
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 Software and IT offerings as well as Home Services and Travel 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: Software & IT: +23%
- Rank #2: Auto: +19%
- Rank #3: Home Services: +18%
- Rank #4: Travel: +17%
- Rank #4: Religion: +16%
Source: GoDaddy Small Business Research Lab, US data, YoY Q3’24 – Q3’25
Microbusinesses Make Major Economic Impact
- 8+: Over eight new jobs are created by each microbusiness entrepreneur on a county-level. In 2021, each microbusiness created just over two jobs.
It is not always simple to measure the impact of small digital businesses. Many are new, part-time, or informal. To close that gap, we’ve worked with UCLA economists and U.S. Census data to quantify how even a single microbusiness influences local economies.
In 2025, their effects further increased.
We found this year that each microbusiness owner creates over 8 new jobs in their respective county – and that number is up from just a few years ago, when one microbusiness created just two jobs in 2020.
That means microbusinesses today have more impact on their communities today than they have before.
Communities where more households own microbusinesses also see higher incomes: every 1% increase in microbusiness ownership correlates with roughly a 2% rise in income, or around $1,500 over three years.
Together, these findings show how small, digital businesses are a meaningful force in economic growth.
Customer Stories
Tanika “Nika” Nelson
Nika’s Cupcake Bar, NIKASCUPCAKEBAR.COM
When Nika lost her job, she turned her passion for baking into Nika’s Cupcake Bar. What began as simple cupcakes grew into a real microbusiness once she built her website and committed to selling online. With support from GoDaddy tools, she learned how to reach customers and manage orders with confidence. The income mattered, but the shift in her mindset mattered more. Nika says entrepreneurship helped her regain control, purpose, and pride in her work. Her experience reflects what many survey respondents shared. For most microbusiness owners, life feels better as an entrepreneur because they get to shape their own future.
Kat Hernandez
Juanita’s Plants, JUANITASPLANTS.COM
While managing freelance work and student debt, Kat founded Juanita’s Plants with just one houseplant for sale. She posted it online and orders arrived faster than she expected. She reinvested everything into her website, pop up events, and a small delivery service. The business grew slowly and steadily and gave her a sense of independence she had always wanted. Kat plans to open multiple locations one day and build a place that feels welcoming to everyone. Her experience mirrors a larger trend among young microbusiness owners who rely on digital tools, start lean, stay flexible, and dream far bigger than their budgets.
Key Entrepreneur Insights
Since 2019, the GoDaddy Small Business Research Lab has heard directly from over 60,000 micro- and small business owners across the country who have a GoDaddy domain and an active website. Their answers give us a real view of how people are navigating uncertainty, 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.
Positive outlook for my business vs. the economy
| |
Business
|
Economy
|
| Jul ’20 |
52%
|
23%
|
| Jul ‘21 |
69%
|
51%
|
| Feb ‘22 |
73%
|
48%
|
| Aug ‘22 |
60%
|
37%
|
| Feb ’23 |
73%
|
32%
|
| Aug ‘23 |
72%
|
34%
|
| Feb ‘24 |
74%
|
39%
|
| Apr ’25 |
66%
|
31%
|
Source: GoDaddy Small Business Research Lab U.S. National Survey. 2025
Let’s start with who we’re talking about. These businesses are, by design, small. 95% have fewer than 10 employees, and 65% are run by solo entrepreneurs. Many aren’t running it full-time yet, although most want to be. In October, 45% said their business is their main source of income, 40% use it as supplemental income, and 15% say it currently generates no income.
And while almost two-thirds (65%) are first-time business owners, entrepreneurship runs deep in this group. Nearly one in three owns more than one business, and 29% of serial entrepreneurs sold a previous venture at a profit or broke even before starting their current one. This is a community that is both resilient and resolute.
Microbusinesses are small
- 95%: Microbusinesses with fewer than 10 employees
- 65% are solo entrepreneurs
- 35% have employees
Microbusinesses generate income
- 45%: Main
- 40%: Supplemental
- 15%: No Income
About 1 in 3 currently own more than one business
65% are first-time small business owners.
Source: GoDaddy Small Business Research Lab National Survey, October 2025; n = ~1,100.
While broader economic conversations leaned toward caution in 2025, small and microbusiness owners delivered a quieter, more telling signal: they believe in their path and they’re planning for growth.
In April, one in four planned to hire within the next 12 months, and in October, 17% (one in six) expected to bring on new employees within the 2-month period before the end of 2025, showing that hiring intentions remained despite shifting conditions. That same survey also revealed that two-thirds expected sales in November and December to match or exceed last year, and a similar share anticipated revenue to hold steady or grow.
Their outlook on hiring lines up with how they see sales. Most expect revenue to hold steady or grow in the months ahead.
Majority have neutral to positive expectations of Nov-Dec 2025 sales compared to 2024
- Lower: 26%
- No Change: 37%
- Higher: 29%
Source: GoDaddy Small Business Research Lab National Survey, October 2025; n = ~1,100. *Remaining respondents indicated they were uncertain.
Small business outlook on revenue over the next 6 months is cautiously optimistic
- Negative: 24%
- Positive or No Change: 66%
Source: GoDaddy Small Business Research Lab National Survey, October 2025; n = ~1,100. *10% of respondents selected “Don’t know”
Small and microbusiness owners are also redefining what success means today. Shifting from traditional financial milestones, they’re prioritizing stability, purpose, and quality of life as seen below.
This shift is widespread. 83% say their definition of success has evolved from somewhat to completely since childhood, and 72% feel confident they’ll achieve it, again demonstrating that resiliency and resolve at a time when economic uncertainty is top-of-mind in the news.
They’re also clear about what stands in their way. The top barriers to achieving success include:
- Lack of financial support and/or high costs (54%)
- Lack of guidance (38%)
- Lack of expertise or skills needed (36%)
- Lack of time (33%)
These challenges matter. Small and microbusinesses play a major cultural and economic role in U.S. communities, therefore strengthening the support systems around them is important to sustaining the confidence and momentum they carry into the future.
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.
Source: GoDaddy Small Business Research Lab National Survey, October 2025; n = ~1,100.
Top barriers to achieving success
| 54% |
Lack of financial support and/or high costs |
| 38% |
Lack of guidance |
| 36% |
Lack of expertise / skills needed |
| 33% |
Lack of time |
| 32% |
Lack of opportunity |
| 21% |
Lack of communication skills |
| 16% |
Lack of education |
| 8% |
None of the above |
With lack of time ranking among the top challenges for small and microbusiness owners, AI adoption has accelerated. Nearly half (49%) now use AI for their business, which is almost double the 25% reported in early 2024. Owners say AI delivers value in several key areas:
- 36%: Improved marketing content – the top cited business challenge
- 33%: Better customer communication
- 29%: Enhanced efficiency
Their approach to online presence reflects another interesting trend. While 77% say social media is important for building awareness, only 24% sell products or services directly on those platforms. Instead, 56% point to their website as the place where customers can buy from them. The second most common sales channel is in-person, e.g. farmer’s markets or pop-ups, which aligns with the fact that two-thirds do not have a physical business location.
For those who don’t sell on their website, an online presence still plays a central role: 73% view it as critical for marketing and credibility, and 61% rely on it for customer communications. And despite the reach a website can provide, many operate with a strong local focus. Most say their customers and vendors are based within their state, their region, or even their own neighborhood, offering meaningful proximity to the people they serve and, in some cases, insulating them from certain global or cross-border market pressures.
“Where can someone buy your products & services?”
- 56%: My Website
- 40%: In Person (But Not Office)
- 24%: Social Media
- 18%: In-Store Or Office
Websites support entrepreneurs to achieve a variety of goals
- 73%: Marketing & Credibility
- 61%: Communications
- 31%: Sales Orders
- 24%: Bookings
- 17%: Operations
Microbusinesses are focused locally
- 69% of small business owners have no international suppliers.
- 45% source more than half of their supply chain within their city or state.
- Two-thirds say most of their customers live within their city or state.
- 78% of small business owners serve only domestic customers.
Source: GoDaddy Small Business Research Lab National Survey, July 2025; n = ~ 1,400.
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.
