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.
Across the United Kingdom, small and microbusinesses continue to expand their presence and influence. Last year’s report highlighted the steady rise of entrepreneurs outside major cities – especially in coastal towns and rural areas far beyond London – 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 2,500 small business owners this year, and their steadfast focus, navigation of financial challenges, and also joys from operating their own business.
When we rank constituencies by the number of their microbusinesses, it’s no surprise we see the areas associated with London and Manchester mostly present. However, as we uncovered this year, areas that are more rural and seaside have experienced the most growth and increases in the density. Density shows how many microbusinesses exist per 100 people. It gives us a clearer way to compare large and small constituencies.
Top 10 Constituencies By Microbusiness
| Parliamentary Constituency |
Active Microbusinesses Q3 ’25 |
1 Year Microbusiness Count % Growth |
Microbusiness Density Q3 ’25 |
| Hackney South and Shoreditch |
8,218 |
43% |
7.0 |
| Kensington |
6,986 |
80% |
6.0 |
| Bermondsey and Old Southwark |
6,145 |
85% |
4.9 |
| Chelsea and Fulham |
6,039 |
88% |
5.7 |
| Poplar and Limehouse |
6,027 |
98% |
4.7 |
| Bethnal Green and Bow |
5,829 |
94% |
4.7 |
| Manchester Central |
5,815 |
129% |
4.3 |
| Hampstead and Kilburn |
5,702 |
91% |
4.4 |
| Finchley and Golders Green |
5,204 |
88% |
4.3 |
| Hammersmith |
5,102 |
102% |
4.3 |
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 Personal Services and Law as well as Fitness/Wellness 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: Religion: +110%
- Rank #2: Personal Services: +61%
- Rank #3: Law: +61%
- Rank #4: Fitness & Wellness: +28%
- Rank #4: Business +25%
Microbusinesses Make Major Economic Impact
- 5+: Each additional digital microbusiness per resident is associated with an average increase of approximately 5 jobs per resident.
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.
Customer Stories
Sarah and Chris Fryer
Magpye, MAGPYE.CO.UK
In 2019, founders Chris and Sarah launched Magpye — a plant-based pie business born from their desire for hearty vegan comfort food. Operating from a converted horse-box trailer by the river, they spent a year perfecting pastry and filling before selling their first pie. When the pandemic hit and markets dried up, they acted fast. With GoDaddy’s website builder they had an online store ready in a morning — and started selling pies directly to customers within a week. Their shift online rescued the business, turning a riverside food stall into a thriving mail-order vegan pie brand loved by fans across the country.
Lucy Stone
Lucy Stone, MEDITATIONROCKS.CO.UK
During lockdown, owner Lucy struggled with stress but turned to meditation. She began posting a daily guided meditation on Facebook Live. What started with a handful of family and friends quickly attracted thousands from around the world — and thus her business was born. Today, her subscription-based mindfulness service delivers five live sessions weekly, plus access to recordings, audio, and wellness resources. She uses her website to manage sign-ups, content delivery, and communication with clients. Because of that, she says building everything through a centralized online platform “completely fitted the bill.” Meditation went from personal solace to a thriving global community offering calm in chaotic times.
Key Entrepreneur Insights
Since 2019, GoDaddy’s Small Business Research Lab has surveyed over 60,000 global microbusiness owners with a GoDaddy domain and active website and over 10,000 in the UK. 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 |
|
| Jan ’23 |
55% |
18% |
| Aug ’23 |
55% |
17% |
| May ‘24 |
58% |
25% |
| May ’25 |
47% |
14% |
Source: GoDaddy Small Business Research Lab U.K. National Survey. May 2025 (N-= 2,153)
Microbusinesses in the UK 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 how recently some were started.
While many are first-time founders, about 1 in 4 currently own more than one business. This shows how strongly entrepreneurial ambition is taking hold in the UK, with people experimenting, learning, and launching multiple ideas even in a shifting economic landscape. This is a community that is both resilient and resolute.
Microbusinesses are small
- 86%: Microbusinesses with fewer than 10 employees
- 26% are solo entrepreneurs
Microbusinesses generate income
- 34%: Main
- 35%: Supplemental
- 31%: No Income
About 1 in 4 currently own more than one business
62% are first-time small business owners.
Source: GoDaddy Small Business Research Lab National UK Survey, May 2025; n=~2,400+
UK microbusiness owners continue to show a grounded and moderate outlook for their financial turnover in the second half of 2025, with 48% anticipating an increase, however many feel they are underperforming compared to their peers. 51% say their financial performance is lower than the average small or microbusiness, and only 9% feel they are outperforming, despite over one-third making a life from their ventures as their main source of income. This suggests that small business owners tend to be more pessimistic when assessing themselves in comparison to others, especially when considering their fairly positive financial turnover expectations for the rest of the year.
Small business outlook on revenue for the next 6 months was cautiously optimistic in May
- 29%: No Change
- 48%: Positive
Many entrepreneurs feel their business is underperforming compared to their peers
Perception of financial performance compared to the average small or microbusiness
- 51%: Lower
- 24%: No Change
- 9%: 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.
43% 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 60% of entrepreneurs fund their small business from personal savings when first starting out. Just over half (54%) 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 (35%) now use AI for their business, which is up from the 27% reported in 2024. Owners say AI delivers value in several key areas:
- 40%: Writing content for me
- 33%: Summarizing information or text
- 27%: 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 (33%), followed by connecting with customers (19%).
Al use has a positive impact on small businesses
- 63% of entrepreneurs report a positive impact from Al on their business
Top cited joys in operating a business
- 33%: Creating my own source of income
- 19%: Connecting with customers
- 13%: Making a sale
- 11%: Making an impact on my community
- 11%: Being an inspiration to others
- 3%: Creating jobs for others
54%: Slightly over half (54%) of UK small business owners would say they have work-life balance.
Source: GoDaddy Small Business Research Lab National UK Survey, May 2025; n=~2,400+
The main source of capital when starting a small business in the UK
| 60% | Personal savings |
| 18% | No capital needed |
| 5% | Loan from friends and/or family |
| 4% | Loan from bank/credit union |
| 2% | Equity investors |
| 1% | Online startup campaign or crowdfunding |
| 1% | Debt investors |
As far as connecting with customers, their approach to online presence reflects another interesting trend. While two-thirds say social media is important for their business and 32% say it’s the primary way to attract customers, only 19% sell products or services directly on those platforms. Instead, 30% point to their website as the place where customers can buy from them. This is followed by business conducted either in the office or in-person, e.g. markets or pop-ups, which aligns with the fact that majority do not have a physical business location.
For those who don’t sell on their website, an online presence still plays a central role: 59% view it as critical for marketing and credibility, and 26% rely on it for customer communications.
Online presence leads as far as where small businesses conduct business and
- 30%: Website
- 19%: Social Media
- 9%: Storefront or Office
- 7%: In-Store not Office
What entrepreneurs use their website for the most
- 59%: Marketing & Credibility
- 26%: Communications
- 21%: Sales Orders
- 13%: Bookings
- 4%: Operations
Source: GoDaddy Small Business Research Lab National UK Survey, May 2025; n=~2,400+
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.
