Introducing the Microbusiness Index

Now policymakers can measure the vibrancy of their microbusiness communities

Introduction

Developed by economists at the UCLA Anderson Forecast in partnership with GoDaddy Venture Forward, the Microbusiness Index tracks dozens of factors that impact the success of online microbusinesses and converts them into a composite score.

Policymakers can use this score to benchmark their communities against others and, over time, to track the effectiveness of their programs to help microbusinesses thrive. Updated monthly, the Index provides the most up-to-date snapshot of microbusiness health at either the county or metropolitan levels.

Click to the right to download the report, to learn more about how the Index works and to access the latest dataset.

Download the Microbusiness Index Report

Overview

The Microbusiness Index is comprised of three sub-indices

Receptivity

Physical and intellectual infrastructure needed to access and use the Internet

Reception

The number of GoDaddy online microbusinesses created by residents of each locale

Activity

The frequency of owner and customer access to the websites created

How the Microbusiness Index Works

Los Angeles, CA US National Average
microbusiness index composite score over timegraph 1
*Microbusiness Sub-Indices Time Series, Even-Weight Index, US

The Composite Score Index is built using data on the following key factors:

  • “Receptivity”
    refers to the degree to which a community provides the physical and intellectual resources entrepreneurs need to leverage the Internet, such as broadband networks and mentoring programs.
  • “Reception”
    measures the number of microbusinesses doing business in a given locale.
  • “Activity”
    captures how often microbusiness’ websites are used by owners and customers, including how often new features and capabilities are added.

By typing in the name of a community, users can see at a glance whether conditions for the creation of microbusinesses have improved or declined over time, relative to a baseline of 100 established when the index was launched in April 2020. In the example here, Los Angeles County’s composite score has always exceeded the national average and has increased to nearly 110.

Los Angeles, CA US National Average
microbusiness index composite score over timegraph 1
*Microbusiness Sub-Indices Time Series, Even-Weight Index, US

A Closer Look

How does the Index look across the United States?

Your County’s Composite Score Over Time

See how your county’s Microbusiness Index composite score changes over time, compared to the US national average

US National Average -