GoDaddy has recently unveiled the latest insights from its Venture Forward data, analysing information from over 20 million British and American microbusinesses to build an understanding of their economic impact and value they provide to their respective communities and countries. This is the first time GoDaddy has compared the UK and US results, uncovering significant insights into the two microbusiness landscapes across economic outlook, growth, revenue, and demographics.
A shifting perception in the UK: A cause for optimism
GoDaddy’s findings reveal a notable improvement in the UK’s economic perception among microbusiness owners. In January, only 18% expressed confidence in the national economy; today, that figure has risen to 42%, perhaps reflecting more optimistic economic forecasts and a decrease in inflation, factors breathing much needed confidence into the hearts of British entrepreneurs.
However, despite this upward trajectory, a significant gap remains when compared to their US counterparts. 60% of US small business owners have confidence in their economy – 18% more than their British counterparts. Furthermore, when it comes to business prospects, 72% of American entrepreneurs hold a positive view, whereas the figure stands at only 55% for their British equivalent.
Exploring the economic disparities
These disparities are not isolated perceptions; they are reflections of broader economic trends. In April, the UK grappled with the highest inflation in the G7, exacerbating a serious cost-of-living crisis that impacted both businesses and consumers. Furthermore, the economic repercussions from the war in Ukraine has been more pronounced in the UK and Europe than in the United States, due to a greater reliance on gas, leading to a surge in fuel costs which have had a devastating impact on smaller businesses. While the US economy rebounded to a 5% larger size in the final three months of last year compared to pre-Covid levels, the UK remained 0.6% poorer. Highlighting these contextual factors is crucial in understanding the divergent outlooks between microbusiness owners in the two regions.
However, it is worth noting that despite these differing perceptions, GoDaddy’s data suggests a parallel in earning power between UK and US microbusinesses, highlighting their resilience even in the face of economic challenges.
Microbusinesses: Catalysts for local prosperity
This resilience is of utmost importance, especially considering the pivotal role that microbusinesses play in fostering local prosperity, particularly in disadvantaged communities, putting money back into their local community through local jobs and taxes. GoDaddy’s Venture Forward research highlights a direct correlation between the density of ventures in a community and the job prospects, wages, and life satisfaction of its residents. By supporting and empowering microbusiness owners, we can contribute to a more equitable distribution of economic opportunities, narrowing the gap between regions and ensuring sustainable growth. With microbusinesses making up 96% of all businesses in the UK and 92% in US, our previous Venture forward data suggested their potential collapse could deal a roughly £12 billion blow to the country’s finances. They are the engine of the British economy – when they thrive, we all do.
GoDaddy’s Venture Forward data underscores the importance of microbusinesses as more than simply economic entities; they are the lifeblood of communities, instigating positive change and establishing the groundwork for a resilient and inclusive future. Policymakers, business leaders, and the community as a whole should rally behind the cause of microbusinesses. By doing so, we can bridge divides and cultivate an environment where entrepreneurs thrive, propelling economic prosperity and innovation on both sides of the Atlantic.