Our Current Microbusiness Boom

Last year, I started using an excellent new data tool from GoDaddy and Venture Forward, which tracks US microbusinesses based on domain registrations with GoDaddy.  The Venture Forward data offers an excellent and timely look about what’s happening with on-line microbusinesses, and their latest report, released this week, suggests that we’re in the midst of an historical microbusiness boom.   It finds that US residents started 2.8 million more businesses in 2020 than they did in 2019.  The study also reports on related 2021 surveys that suggest 2021 may see even bigger jumps in new startups. 

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The report contains lots of other helpful tidbits.  Startup rates are fastest among minorities and women, and most are started with limited funds (less than $5,000).  It’s likely that a large share of this group includes “necessity entrepreneurs,” who start a business due to limited job options.  But, because the rise in new businesses is so high, the increases cannot solely be attributed to this factor.  Other Venture Forward data suggests that the economic impacts of these new firms could be profound, as each new microenterprise is associated with creating at least two new jobs, generating new income, and reducing unemployment.   You can access all the data and related materials here.