Entrepreneurship is booming, and Black women are leading the charge as the fastest-growing group of entrepreneurs in the U.S., more than doubling since August 2019. However, people from underserved communities who want to start their own businesses often face significant obstacles like lack of funding, knowledge, and resources. Microbusinesses, defined as businesses with unique domains, active websites, and usually fewer than ten employees, are vital for local economies worldwide because they stimulate improvement and growth.
In both the U.S. and the U.K., each entrepreneur creates about seven jobs for every 100 people in a region. This raises important questions: How do you start a microbusiness, and how can we help those who want to become business owners?
At GoDaddy, as part of our global social impact program, Empower by GoDaddy, we provide entrepreneurs in underserved areas with the digital tools, resources, and networks they need to thrive. I’ve learned firsthand from these entrepreneurs about the challenges and opportunities they face.
Since 2018, our Venture Forward research has been surveying over 40,000 entrepreneurs with an online presence to understand their needs and feelings. This collection of data offers insights into the views and attitudes of various business owners over time. Let’s dive into four key insights from our latest survey findings:
-
A significant 39% of U.S. microbusiness owners say that online marketing is their biggest hurdle. To tackle this, government agencies, private companies, and nonprofits could create tailored programs offering financial support and training on digital marketing strategies. KaShala Smith, co-founder of Steeped Pearl Tea, highlighted in an interview how crucial the Empower by GoDaddy program was for her business. It helped her kickstart Steeped Pearl’s website and expand her customer base significantly.
-
Many microbusiness owners use their first dollars to build a website, even though it can be tricky. This trend shows the impact of the digital age on entrepreneurship, emphasizing the need for accessible and user-friendly platforms. GenAI is changing the game, allowing business owners to manage their online presence without needing technical skills. Tools from GoDaddy use GenAI to help entrepreneurs find unique business names, create websites, email addresses, and social media posts automatically. Empower by GoDaddy understands this innovation’s importance and includes GenAI topics in its educational materials, hosting exclusive GenAI summits for its community. Sharing this knowledge with underserved entrepreneurs is vital for making entrepreneurship more inclusive.
-
About 66% of microbusiness owners believe being an entrepreneur improves their life, with 46% starting a business to be their own boss. This highlights the importance of creating financial products and resources tailored for microbusinesses. These could include microloans, grants, or financial literacy programs designed to meet their specific needs.
-
Microbusiness owners usually have a more positive outlook for their businesses than the overall economy. With 74% feeling optimistic about their business prospects for the next six months, they rely on their abilities to succeed. Mentorship programs and peer networks can help build a supportive community where entrepreneurs share insights, ideas, and tackle challenges together. By fostering such a community, we encourage success stories and turn challenges into opportunities for growth and learning.
Understanding the needs, wants, and desires of current business owners is crucial in supporting underserved communities and promoting inclusive opportunities. It’s important to communicate these needs to stakeholders, customers, and decision-makers who play a role in a business’s success. Ebony Janelle leads Corporate Sustainability at GoDaddy, with over a decade of experience championing support for entrepreneurs in underserved communities. Her dedication to inclusion shines through her work with Empower by GoDaddy and her active participation in various Employee Resource Groups.
