2025 Year-End Report
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.
Tina Lagdameo
Honest Junk
MYHONESTJUNK.COM
Updated Mon Dec 16, 2025
Introduction
Report Sections
- Small business growth by location and industry
- Updated economic impact
- Customer stories
- Key entrepreneur insights
Downloads
Select a country to see specific findings from the report:
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.
Select a time period and metric to visualize below
AU Microbusiness Density Map
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).
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.
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.
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.
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.
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.
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.
Microbusinesses Are Growing
Resilience has been a defining trait of small businesses, and in 2025, resolve stands out just as strongly.
In Canada, 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 1,800 small business owners this year, and their steadfast focus, navigation of financial challenges, and positive business impact from using AI.
Select a time period and metric to visualize below
CA Microbusiness Density Map
The chart below is a ranking of provinces by the highest microbusiness counts.
While strong activity is led by more populated areas, entrepreneurship is also accelerating fast in some smaller areas like Yukon. While Ontario is the largest community of small businesses, British Columbia is the densest. Density shows how many microbusinesses exist per 100 people. It gives us a clearer way to compare large and small provinces.
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 Writing and Business as well as Entertainment in 2025. These rankings show which industries saw the biggest year-over-year growth in entrepreneurs selling online.
Customer Stories
Myriam Provost
Atelier Renouveau par Myriam, atelierrenouveau.ca
Myriam Provost started Atelier Renouveau par Myriam with a simple belief that old furniture deserves a second life. What began as a passion project during the pandemic quickly grew as customers fell in love with her restored vintage pieces. When she launched her bilingual website, she felt her business shift from hobby to real company. The site helped her reach new buyers who valued her eye for design and her careful craftsmanship. Today Myriam manages every step of the process herself and continues to build a loyal community. Her story shows how digital tools can turn one person’s creativity into a growing microbusiness.
Sadaf Rahimi
Charcuterie Vancouver,
charcuterievancouver.com
Sadaf Rahimi built Charcuterie Vancouver from her love of bringing people together through food. She started with events and custom grazing tables, growing a small following that appreciated her care and artistry. When the pandemic halted gatherings, she refused to let the business fade. She shifted to individual charcuterie boxes and built a simple website so customers could order directly. The change kept her business alive and introduced her work to a wider community. Sadaf’s journey from newcomer to Canada to successful microbusiness owner shows how resilience, creativity, and digital tools can help an idea grow even in the toughest moments.
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 just under 10,000 in Canada. 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.
Microbusinesses in Canada are, by design, small. 92% have fewer than ten employees, and over a quarter are run by solo entrepreneurs. Many owners are still building toward full-time operations, with 28% saying their business is their main source of income, 38% using it as supplemental income, and 34% reporting that it currently generates no income, which may be due to the recent start of the business.
Half are first-time founders, and about 1 in 4 currently own more than one business. 37% previously sold a business at a profit or broke-even. This shows how strongly entrepreneurial ambition is continuing in Canada, with people experimenting, launching, and growing multiple ideas even in a shifting economic landscape. This is a community that is both resilient and resolute.
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. Canadian microbusiness owners continue to show a grounded and moderate outlook for their financial turnover in the second half of 2025. After two-thirds had a steady or profitable first half of the year. 40% anticipate an increase, and 29% expect no change.
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. 45% 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 64% 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 (38%) now use AI for their business, and small business owners say AI delivers value in several key areas:
- 71%: Writing content
- 62%: Summarizing information or text
- 54%: 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 (25%), followed by connecting with customers (17%). 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.
As far as connecting with customers, their approach to online presence reflects another interesting trend. 40% point to their website as the main place where customers can buy from them, followed by 27% on social media and 21% in a storefront or office.
For those who don’t sell on their website, an online presence still plays a central role: 69% 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. Most say their customers are based within their province or even city, offering meaningful proximity to the people they serve and, in some cases, insulating them from certain global or cross-border market pressures.
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.
Select a time period and metric to visualize below
UK Microbusiness Density Map
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.
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.
Microbusinesses Make Major Economic Impact
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.
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.
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.
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%).
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.
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.
Select a time period and metric to visualize below
US Microbusiness Density Map
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.
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.
Microbusinesses Make Major Economic Impact
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.
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.
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.
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.
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.
About GoDaddy Small Business Research Lab
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.
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