Entrepreneurship is on the rise and Black women remain the fastest-growing group of entrepreneurs in the U.S., more than doubling since August 2019. Yet, research shows that individuals from underserved communities (microbusinesses) trying to start their own businesses often struggle to achieve success due to lack of funding, knowledge and resources.
Microbusinesses – which GoDaddy defines as a business with a unique domain, an active website, and most often, fewer than ten employees – fuel local economies across the globe and ultimately improve lives. In the U.S. and U.K., each entrepreneur adds 7 jobs per 100 people in a county or constituency.
So, that begs the questions: What does it take to get a microbusiness started, and how can we support those who want to become business owners?
As a GoDaddy Corporate Sustainability Manager, I help to lead Empower by GoDaddy, our global social impact program that provides entrepreneurs in underserved communities with digital tools, resources and networks needed to succeed. I often learn directly from our entrepreneurs about the challenges and opportunities most affecting them.
Since 2018, GoDaddy’s Venture Forward research initiative has continuously surveyed more than 40,000 entrepreneurs with an online presence to glean insights into these wants and needs. Through these surveys, Venture Forward now has more than five years’ worth of data findings that speak to the feelings and attitudes of diverse business owners over time.
Let’s explore four key insights from these entrepreneurs, as supported by our recent survey data:
1. 39% of U.S. microbusiness owners agree that marketing their business online remains a top challenge.
Addressing this barrier, government bodies, private enterprises and nonprofit organizations could pave the way for tailored programs that provide not only financial support but also comprehensive training on digital marketing strategies. KaShala Smith, the co-founder of Steeped Pearl Tea, acknowledged in an interview how pivotal her participation in the Empower by GoDaddy program was for her business growth. The program provided KaShala a launchpad for Steeped Pearl’s website, helping to scale her business and reach even more customers where they are and when they want.
2. Microbusiness owners are investing their first dollars into building a website, despite it being difficult.
Recognizing that microbusiness owners are investing their initial resources into building a website signifies the acknowledgment of the digital era’s impact on entrepreneurship. This emphasizes the need for accessible and user-friendly platforms that empower individuals to create and manage their online presence effectively. GenAI is one area that’s revolutionizing the way microbusiness owners can do so. The beauty of GenAI is that it does not require users to be a tech expert or know how to code.
The popular tools today – like the ones GoDaddy is embedding in its solutions – can do the heavy lifting for entrepreneurs alike. GoDaddy AiroTM, for example, helps our customers using GenAI technology to, in just a few moments, find unique names for their businesses, automatically create website options, email addresses, social posts and much more. Empower by GoDaddy realizes the importance of this revolution and has incorporated GenAI material into its educational programming and is holding an exclusive GenAI for Small Business summit for its Empower by GoDaddy ecosystem. Providing GenAI knowledge to underserved entrepreneurs is key to accessibility and promoting inclusive entrepreneurship, which is core to GoDaddy’s mission.
3. 66% of microbusiness owners agree that life is better as an entrepreneur; 46% started their business to be their own boss
I often think about how I could have been a third-generation business owner if only my grandmother, Johnnie Pearl, had the tools and resources she needed to sustain her soul food restaurant. To further support the generational impact of entrepreneurship, policymakers and financial institutions can collaborate to tailor financial products and resources specifically designed for microbusinesses. This might include microloans, grants or financial literacy programs that address the unique needs of this demographic.
4. Microbusiness owners consistently express a more positive outlook for their business than that for the greater economy.
The entrepreneurial community has bet on themselves and believes their businesses will be successful. 74% have a positive outlook for their business over the next six months. Harnessing this optimism, mentorship programs and peer-to-peer networks can be established to foster a supportive environment where microbusiness owners can share insights, exchange ideas and navigate challenges together. By building a sense of community, entrepreneurs can leverage collective knowledge, fostering an ecosystem where success stories inspire others and setbacks become opportunities for growth and learning.
To truly provide for underserved entrepreneur communities and promote inclusive opportunity for all, we must understand current business owners’ needs, wants and desires. We must also ensure that we convey those needs to the stakeholders, customers and decision-makers who influence a business’ success.
Ebony Janelle is the manager of Corporate Sustainability at GoDaddy. With over a decade of experience at GoDaddy, Ebony Janelle is a staunch advocate for supporting entrepreneurs in underserved communities, living this as program manager for Empower by GoDaddy. Her dedication to inclusion is evident in her active participation in various Employee Resource Groups (ERGs) and in her daily life. @GoDaddy
Microbusinesses stock image by PeopleImages.com – Yuri A/Shutterstock