TEMPE, Ariz., Oct. 19, 2021 /PRNewswire/ -- GoDaddy
(NYSE: GDDY), the company that empowers everyday
entrepreneurs, today announced new survey findings from its
multi-year Venture Forward initiative showing that online
microbusiness owners are more optimistic now compared to a year ago
despite the ongoing pandemic, with Black and Hispanic entrepreneurs
expressing the most optimism about the prospects for their
businesses in the near term.
"The resilience and determination among entrepreneurs in the
face of adversity is truly inspiring," said Jeremy Hartman, Vice President, Venture Forward
at GoDaddy. "This new survey data shows the impact online
microbusinesses can have on people and their communities,
especially during difficult economic times."
Notable takeaways from the survey of 4,000 online
microbusiness owners in the U.S., 90% of whom has fewer than 10
employees, which was conducted from July 19
to 30:
- Black and female individuals started more microbusinesses
during the pandemic: 17% of all existing microbusinesses were
started in the last 16 months; Black-owned microbusinesses
accounted for 26% of those new starts (from 15% before March 2020) and female-owned microbusinesses
accounted for 57% of new starts (from 48% before March 2020).
- Increased optimism: 69% of entrepreneurs were optimistic
about their business in July compared with only 53% expressing
optimism at that time last year, up almost a third. Optimism among
minority owners significantly exceeded the national average, with
84% of Black owners and 77% of Hispanic owners expressing
optimism.
- Low upfront costs, high rewards: More than 60% of
respondents jump-started their businesses with less than
$5,000, with the vast majority of
individuals funding from personal savings, and 1 in 4 microbusiness
owners make at least $4,000 in
monthly gross income.
- Employment status: Overall, 24% of microbusinesses are
owned by people who would otherwise be classified as out of the
workforce - laid off, students, retired, disabled or homemakers.
Among microbusinesses started during the pandemic, 33% were started
by owners who were not otherwise employed at the time, up from 22%
of businesses started before the pandemic, much of this increase
was due to people who had been furloughed or laid off.
- Support needed by microbusiness owners: 43% of
microbusiness owners cited access to capital as the most important
area of assistance they needed from their local governments to be
successful. Marketing help was second at 38% and tax incentives
were third at 28%. When asked about overall challenges to growth,
63% said they wanted help with marketing, 36% said they wanted
better access to capital, 28% said they needed help getting
online.
Microbusinesses help individuals and economies
GoDaddy Venture Forward is a multiyear research initiative
that quantifies the impact online microbusinesses have on their
local economies, providing a unique view into the attitudes,
demographics, employment status, and revenue generation of
microbusiness owners all over the country.
Working with economists and academics, Venture Forward has found
that, on average, adding one microbusiness per 100 people raises
the median income for every household in a community by
$485, and each of these entrepreneurs
tends to create two new jobs.
"We see from this data how some individuals form these
businesses out of necessity and the ability to go quickly from idea
to income can make all the difference to them," Hartman said. "This
is an economic option that didn't exist in the past. We're proud to
give voice to this unique demographic of everyday entrepreneurs and
empower policy makers with data to support them."
Surge in entrepreneurship within Black community
The
past year saw a spike in Black-owned microbusinesses, with new
starts among survey respondents nearly doubling to 26% in July from
15% at the same time a year ago. Of note, Black microbusiness
owners are most likely to be digital-only, and to run their
business as a source of supplemental income in comparison to other
demographic groups. The study also found that 71% of Black business
owners are solopreneurs, compared to 58% of all other groups, and
that more than 80% of Black business owners hope to make their
microbusiness a main source of income, compared to 67% of all other
groups.
Financial assistance continues to be a challenge for Black,
Hispanic and women microbusiness owners
While the research
shows that America's microbusiness founders are an increasingly
diverse group, people of color and women continue to have a tougher
time getting financial assistance.
Overall, 22% of respondents applied for federal funding such as
PPP assistance during the pandemic and 80% reported being approved,
while 27% of Black owners applied but only 56% said they were
approved. Female owners were 10 percentage points less likely than
men to report being approved (75% vs 85%).
About GoDaddy
GoDaddy is empowering everyday entrepreneurs around the world by
providing all of the help and tools to succeed both online and
offline. GoDaddy is the place people come to name their idea, build
a professional website, attract customers, sell their products and
services, and manage their work. Our mission is to give our
customers the tools, insights and the people to transform their
ideas and personal initiative into success. To learn more about the
company, visit www.GoDaddy.com. To learn more about Venture
Forward, visit https://www.godaddy.com/ventureforward/.
Source: GoDaddy Inc.
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SOURCE GoDaddy Inc.