{"id":8687,"date":"2025-08-11T16:37:05","date_gmt":"2025-08-11T23:37:05","guid":{"rendered":"https:\/\/www.godaddy.com\/research\/?p=8687"},"modified":"2025-09-03T10:55:55","modified_gmt":"2025-09-03T17:55:55","slug":"momentum-breaks-records-2025-godaddy-microbusiness-activity-index-annual-report","status":"publish","type":"post","link":"https:\/\/www.godaddy.com\/research\/momentum-breaks-records-2025-godaddy-microbusiness-activity-index-annual-report\/","title":{"rendered":"Momentum Breaks Records: 2025 GoDaddy Microbusiness Activity Index Annual Report"},"content":{"rendered":"\n<p>New insights reveal how small digital businesses are reshaping the U.S. economy, driving job creation, and narrowing ecosystem divides.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Overview<\/h4>\n\n\n\n<p>The GoDaddy and UCLA Anderson Forecast Microbusiness Activity Index (MAI) tracks the health and impact of small and microbusinesses &#8211; businesses with fewer than 10 employees that have a GoDaddy domain and an active website. It is comprised of 3 sub-indeces: Infrastructure (internet availability and human capital), Participation (number of people and microbusinesses), and Engagement (the maturity of websites in features, traffic experienced, backlinks, etc.). The 2025 MAI report reveals that microbusiness website activity has reached record-breaking levels among other new findings.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"645\" src=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-1024x645.png\" alt=\"Line chart titled \u201cFigure 1. Microbusiness Activity and Sub-Indices (Even-Weight, U.S.)\u201d showing trends from Q2 2020 to Q1 2025 for four metrics:\n\t\u2022\tActivity (blue line with open circles) \u2014 relatively stable around 100\u2013108 until mid-2024, then rises to ~112 before slightly declining.\n\t\u2022\tInfrastructure (black line with filled squares) \u2014 gradual, steady increase from about 99 to ~106 over the period.\n\t\u2022\tParticipation (green line with asterisks) \u2014 flat trend near 99\u2013101 with minor fluctuations.\n\t\u2022\tEngagement (red line with filled triangles) \u2014 more volatile, with peaks in 2021\u20132022, dips in 2023, then a sharp climb in late 2024 reaching ~130 before dropping slightly in early 2025.\nY-axis ranges from 96 to 132; x-axis shows quarterly periods from 2020 to 2025.\" class=\"wp-image-8691\" srcset=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-1024x645.png 1024w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-768x484.png 768w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-1536x968.png 1536w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-2048x1290.png 2048w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-320x202.png 320w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-1-120x76.png 120w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Record Growth<\/h4>\n\n\n\n<p>Microbusiness momentum has surged to unprecedented levels, with the MAI\u2019s Engagement sub-index jumping sharply from 106.6 to 124.9, marking its largest-ever annual increase. This jump is driven primarily by widespread adoption of generative AI tools such as GoDaddy\u2019s Airo, ChatGPT, and Claude. These technologies enable online entrepreneurs to significantly boost productivity, features, content and customer interactions, empowering them to achieve more with limited resources. Further analysis:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Infrastructure is steadily improving nationwide, providing vital support for digital entrepreneurs with fewer variance in scores across cities than just a few years ago.<\/li>\n\n\n\n<li>Participation remains stable, reflecting consistent entrepreneurial activity relative to population growth.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Entrepreneurs Fuel Jobs and Income Gains<\/h4>\n\n\n\n<p>Microbusinesses don\u2019t just support individuals, they actively boost local economies and job markets. According to the latest MAI data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Each new microbusiness owner generates approximately eight additional jobs, showcasing their outsized impact by hiring directly or creating greater demand locally<\/li>\n\n\n\n<li>A one percentage-point increase in microbusiness density corresponds with a 6% rise in local household income at the county-level<\/li>\n\n\n\n<li>Each 1% increase in microbusiness entrepreneurial activity also corresponds to a 2% gain in HH income.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Emerging Metros Narrowing the Gap<\/h4>\n\n\n\n<p>Traditional tech-focused metros like San Jose, San Francisco, and Washington, D.C. remain dominant in overall MAI scores. However, the gap between these leaders and previously lagging metros is narrowing. Cities such as Dallas, Charlotte, and Kansas City have demonstrated some of the largest annual improvements, driven by significant advances in digital infrastructure and local entrepreneurial support systems.<\/p>\n\n\n\n<p>Meanwhile, Miami, Los Angeles, and San Jose lead the Participation Index, meaning that the number of new entrepreneurs and businesses is exceeding typical population growth in these diverse and digitally connected cities.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"899\" src=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-1024x899.png\" alt=\"A horizontal dot plot titled \u201cFigure 9. Microbusiness Engagement Index, Selected 30 Metros, April 2020, March 2024, and March 2025.\u201d Thirty U.S. metro areas are listed vertically from San Jose at the top to Los Angeles at the bottom. Each metro has three markers: an open downward triangle (April 2020), an orange upward triangle (March 2024), and a red upward triangle (March 2025). The x-axis ranges from 92 to 128, showing index values. In April 2020, most metros cluster between 94 and 102. By March 2024, values shift to roughly 100\u2013106. By March 2025, all metros are much higher, between about 115 and 125, with San Jose, Minneapolis, and St. Louis leading, and Los Angeles, San Diego, and Austin on the lower end of the 2025 range. The legend at the bottom right explains the symbols and dates.\" class=\"wp-image-8693\" srcset=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-1024x899.png 1024w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-768x674.png 768w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-1536x1348.png 1536w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-2048x1797.png 2048w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-320x281.png 320w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-9-120x105.png 120w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Closing the Infrastructure Gap<\/h4>\n\n\n\n<p>The convergence of scores between top-tier and bottom-tier cities isn&#8217;t driven by changes in participation but rather by improvements in infrastructure. Investments in digital resources, internet access, and support networks are likely enabling previously underserved metros to foster local entrepreneurship, significantly narrowing economic divides.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Why the MAI Matters<\/h4>\n\n\n\n<p>Small and microbusinesses remain a cornerstone of economic resilience and growth across the U.S. economy. Their activity generates jobs, increases local household incomes, and reduces unemployment, providing essential economic stability nationwide.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"630\" src=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-1024x630.png\" alt=\"Choropleth map of the United States titled \u201cFigure 3. Microbusiness Activity Index Change by State, March 2024 to March 2025.\u201d States are shaded in varying blues to represent percentage change, with darker shades indicating larger increases. The legend shows values from 2.74 (lightest blue) to 5.88 (darkest blue), plus \u201cNA\u201d for states without data. Highest increases appear in states like New Mexico, Maine, Arkansas, and Texas (dark blue), while smaller increases occur in states like California, Nevada, and Pennsylvania (light blue). Wyoming, South Dakota, and Nebraska are marked as NA.\" class=\"wp-image-8692\" srcset=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-1024x630.png 1024w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-768x472.png 768w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-1536x944.png 1536w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-2048x1259.png 2048w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-320x197.png 320w, https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/MAI_2025_Figure-3-120x74.png 120w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\">Explore the Full 2025 MAI Report<\/h4>\n\n\n\n<p>To delve deeper into these insights and explore detailed analysis, download the full <a href=\"https:\/\/www.godaddy.com\/research\/wp-content\/uploads\/2025\/08\/microbusiness_202505_final_20250811.pdf\" data-eid=\"comms.microsites.venture-forward\/link.c2272b061ba55c1f7943ca03de89c469\">GoDaddy Microbusiness Activity Index (MAI) Report for 2025<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New insights reveal how small digital businesses are reshaping the U.S. economy, driving job creation, and narrowing ecosystem divides.<\/p>\n","protected":false},"author":52,"featured_media":8690,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-8687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-overview"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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