A new survey from GoDaddy Inc. reveals that while nearly half of U.S. microbusiness owners anticipate a weakening national economy in the coming months, most still maintain confidence in the growth prospects of their own enterprises.
According to data released May 5, 2025, by the GoDaddy Small Business Research Lab, 49% of the 2,100 surveyed business owners expect the national economy to decline in the next six months, a 17-point increase from 2024. Despite this shift in sentiment, 66% of respondents expressed positive revenue expectations, with only 9% forecasting a decline in sales.
“Small business owners are realistic about the economy, but they believe in themselves,” said GoDaddy CEO Aman Bhutani. “GoDaddy’s research shows they remain intent on pushing their small businesses forward.”
The survey findings, compiled by the GoDaddy Small Business Research Lab—formerly known as Venture Forward—indicate a gradual trend of softening optimism. In 2023, 73% of microbusiness owners expected revenue growth in the first half of the year. That figure has declined to 66% in 2025.
The research also shows a shift in long-term business goals. Forty percent of respondents now say they plan to remain solo entrepreneurs, up from 36% the previous year. This suggests a rising preference for lifestyle-aligned business models rather than scaling to mid-size or larger enterprises.
Cost Pressures and Financial Stress Increase
While optimism remains, small businesses continue to face mounting financial challenges. More than half of those surveyed (52%) identified limited cash flow as their greatest financial obstacle. Specific concerns include existing expenses (34%) and pricing pressures on goods and services (33%).
These pressures are particularly pronounced in certain sectors, with 40% of respondents in Construction & Home Trades and 36% in Creative-Media reporting pricing concerns. Smaller businesses—especially solo operations and those with limited staff—report struggling most with routine operating expenses.
Among companies with 5–9 employees, wages have become the top financial challenge, cited by 45% of those surveyed. GoDaddy notes this reflects a shift toward labor-related expenses becoming more significant as businesses expand.
Financial strain was also named the primary stressor by 33% of respondents, ranking higher than concerns about technology adoption, vendor management, or customer acquisition and retention.
Access to Capital Improving
One potentially positive trend is the improvement in access to capital. Only 8% of owners surveyed cited it as their primary challenge, down from 10% in the prior year.
Victor W. Hwang, founder and CEO of Right to Start, a nonprofit focused on small business growth, commented on the survey’s findings: “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. America’s entrepreneurs are an extraordinary resource for strengthening the U.S. economy and growing new businesses and jobs nationwide.”
Leo Lopez, owner of San Jose-based La Fenice Pizza, added: “The economy is definitely uncertain right now, but as a small business owner, you learn to live with that. 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. That’s how I’ve built my business, and I think a lot of us are doing the same.”
“Entrepreneurs are planning for what is ahead,” Bhutani said. “They are navigating these times by staying focused and determined. At GoDaddy, our job is to make sure they have the tools they need to succeed.”