A new study from GoDaddy Inc. reveals that almost half of US microbial owners expect a weaker national economy in the coming months, but most people maintain confidence in their company’s growth outlook.
Data released on May 5, 2025 shows that the GoDaddy Small Business Research Lab will see 49% of the 2,100 business owners surveyed to have a national economy falling over the next six months, with a 17 percentage point increase from 2024.
“Small business owners are realistic about the economy, but they believe in themselves,” said GoDaddy CEO Aman Bhutani. “GoDaddy’s research shows that they are intended to drive SMEs forward.”
The findings compiled by Godaddy Small Business Research Lab are known as venture forwards. In 2023, 73% of MicroViewsea owners were hoping to see an increase in revenue in the first half of the year. That figure fell to 66% in 2025.
This study also shows changes in long-term business goals. 40% of respondents say they are currently remaining solo entrepreneurs from 36% the previous year. This suggests that there is a growing preference for lifestyle-aligned business models rather than expanding to medium-sized or large companies.
Increased cost pressure and financial stress
Optimism remains, but small businesses continue to face financial challenges. More than half (52%) of those surveyed confirmed that limited cash flow was identified as the biggest financial obstacle. Certain concerns include existing costs (34%) and pricing pressure on goods and services (33%).
These pressures are particularly pronounced in certain sectors, with 40% of construction and home trading respondents and 36% reporting concerns about creative media pricing. Small and medium-sized businesses, especially those with limited solo operations and staff, report the most struggling reports of daily operating expenses.
Of the companies with 5-9 employees, wages have become the highest financial challenge. This was quoted by 45% of those surveyed. GoDaddy notes this reflects the increasing importance of the shift to labor-related costs.
Financial stocks are also named as the major stressors by 33% of respondents, ranked higher than concerns about technology adoption, vendor management, or customer acquisition and retention.
Access to capital improvements
One potentially positive trend is improving access to capital. Only 8% of the owners surveyed cited it as a major issue, down from 10% the previous year.
Victor W. Hwang, founder and CEO of Right To Start, a nonprofit focused on Small Business Growth, commented on the findings of the survey.
Rheolopes, owner of San Jose-based Rafenis Pizza, added: “The economy is certainly uncertain right now, but as a small business owner, you learn to live with it. I had to adjust, simplify and focus what actually works. I’m doing the same thing.”
“Entrepreneurs are planning what’s going on,” Butani said. “They navigate these times by focusing and maintaining resolve. At Godaddy, our job is to ensure they have the tools they need to succeed.”
