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New GoDaddy research shows entrepreneurs remain focused on growth despite rising concern

TEMPE, Ariz., May 5, 2025 /PRNewswire/ -- Nearly half of U.S. small and microbusiness owners expect the national economy to weaken in the coming months. Despite the outlook, most still believe their own businesses will grow, according to new survey data released today by GoDaddy.

In the latest findings from the GoDaddy Small Business Research Lab, formerly known as Venture Forward, 49% of 2,100 U.S. microbusiness owners* surveyed predict a weaker economy in the next six months. That is up 17 points from 2024. Even so, 66% of respondents have positive revenue expectations, and only 9% forecast a sales decline.

"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 GoDaddy Small Business Research Lab findings reflect a steady shift over time. In 2023, 73% of microbusiness owners said they expected to grow revenue in the first 6 months of the year. Now in 2025, it stands at 66%. Most respondents still expect growth, clearly, but the trend indicates weakening optimism.

Entrepreneurs are also adjusting their long-term goals. 40% now say they plan to remain solo entrepreneurs – up from 36% last year – versus aspiring to build mid-size or corporate enterprises. This points to a growing interest in right-sized businesses that match owners' lifestyles and risk tolerance.

Rising Costs Put Pressure on Small Business Margins

While optimism holds, cost pressures are rising and showing up not just in what small businesses pay, but what they can charge. Over half (52%) of respondents cited limited cash flow as their biggest financial barrier, but existing expenses (34%) and pricing pressure on goods and services (33%) ranked highest among specific cost challenges.

These pricing pressures are especially acute among Construction & Home Trades (40%) and Creative-Media businesses (36%), with solo operators and small teams reporting they are feeling the pinch of existing operating costs the most. For businesses with 5–9 employees, wages emerged as the top cost barrier (45%), reflecting a shift toward labor-related pressure once headcount rises.

One in three owners (33%) also named financial strain as their primary source of stress—ranking it above challenges like adopting new technology, managing vendors, or finding and retaining customers.

Access to capital, often a major hurdle for new businesses, appears to be improving. Only 8% of owners say it is their top challenge, down from 10% the year before.