On May 5, 2025, GoDaddy Inc. released a revealing survey that paints a complex picture of the U.S. small business landscape. The findings suggest that while nearly half of small and microbusiness owners anticipate a downturn in the national economy, there remains a strong belief in their own business growth. This resilience is crucial as entrepreneurs navigate these challenging economic waters.

1. Rising Concerns About the National Economy

The GoDaddy Small Business Research Lab, previously known as Venture Forward, surveyed 2,100 U.S. microbusiness owners and discovered a notable shift in economic outlook. A striking 49% of respondents expect the national economy to weaken in the next six months, a significant increase of 17 points from 2024. Despite this pessimism, 66% of business owners maintain positive revenue expectations, with only 9% forecasting a decline in sales.

Aman Bhutani, GoDaddy's CEO, encapsulated the sentiment: "Small business owners are realistic about the economy, but they believe in themselves. GoDaddy's research shows they remain intent on pushing their small businesses forward." However, the data indicates that the overall optimism is waning compared to previous years; in 2023, 73% of microbusiness owners expected revenue growth in the first half of the year.

2. Shifting Entrepreneurial Goals

The survey also revealed a shift in the aspirations of small business owners. There has been an increase in the number of entrepreneurs who plan to remain solo operators, rising from 36% in 2024 to 40% in 2025. This trend suggests a growing preference for businesses that align more closely with personal lifestyles and risk tolerances, rather than the traditional aim of scaling into mid-size or corporate enterprises.

3. Financial Pressures on Small Businesses

While optimism persists, small business owners are grappling with rising costs that threaten their profit margins. The survey highlights several financial challenges:

Limited Cash Flow: 52% of respondents identified limited cash flow as their primary financial barrier.

Existing Expenses and Pricing Pressures: 34% cited existing expenses, while 33% pointed to pressures on pricing their goods and services.

Certain industries are feeling these pressures more acutely. For instance, 40% of business owners in the Construction & Home Trades and 36% in Creative-Media sectors reported significant pricing pressures. Notably, among businesses with 5-9 employees, labor costs became a paramount concern, with 45% citing wages as their top cost barrier.

4. Stress and Access to Capital

The survey further revealed that financial strain is the leading source of stress for one in three small business owners, surpassing challenges related to adopting new technologies, managing vendors, or customer acquisition.

On a positive note, access to capital appears to be improving, with only 8% of owners reporting it as their top challenge, down from 10% the previous year. This trend may indicate a slight easing of financial constraints for entrepreneurs seeking to grow their businesses.

5. Voices from the Small Business Community

Victor W. Hwang, founder and CEO of Right to Start, a nonprofit organization dedicated to promoting U.S. small business growth, commented on the survey's findings. He noted, "The results of this GoDaddy survey demonstrate quantitatively the drive and resilience of entrepreneurs all across the United States. Their commitment to their enterprises is relentless and innovative."

Small business owner Leo Lopez from San Jose's La Fenice Pizza shared his perspective on the current economic climate. He emphasized the need for adaptability, stating, "I've had to adjust, simplify, and focus on what really works, and that's helped me grow stronger. For me, resilience isn't about being unaffected. It's about finding a way to keep going, even when things get unpredictable."

6. Conclusion: A Path Forward for Entrepreneurs

As small business owners prepare for an uncertain economic future, GoDaddy remains committed to providing the tools and resources necessary for their success. "Entrepreneurs are planning for what is ahead," Bhutani concluded. "They are navigating these times by staying focused and determined."

With these insights into the current state of small businesses, GoDaddy underscores the importance of resilience and adaptability in the face of challenges. The findings from the GoDaddy Small Business Research Lab serve as a valuable resource for understanding the evolving landscape of entrepreneurship in the United States.

Original press release