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Resilience of Small Businesses in the Face of Economic Uncertainty

Amid global economic challenges, an encouraging trend has emerged from the latest GoDaddy survey. Conducted in July 2025, this research provides a unique perspective on how U.S. small businesses are navigating a landscape fraught with tariffs, trade negotiations, and persistent supply chain issues. Interestingly, the findings reveal that many small companies are not just surviving but thriving, largely due to their local focus.

The Survey Findings

The GoDaddy Small Business Research Lab surveyed almost 1,400 small and microbusinesses, predominantly employing fewer than nine people. A striking 69% of those surveyed indicated they have no international exposure in their supply chains. Furthermore, approximately 45% of respondents source over half of their materials locally, within their state or city, illustrating a strong commitment to local suppliers.

Additionally, 65% of these businesses cater primarily to local or state clientele. This localized approach has buffered them against global disruptions, such as tariffs and trade barriers, showcasing the importance of nurturing a community-oriented customer base and supplier relationship.

Optimism in the Small Business Sector

Despite the prevailing economic climate, small business owners maintain a sense of optimism about their futures. The survey reveals that 72% of respondents expect their revenues to either increase or remain steady over the next six months. Furthermore, 45% are hopeful that the national economy will stabilize or improve during this same timeframe. According to Gourav Pani, Chief Business Officer at GoDaddy, this reflects a recurring theme seen during the pandemic, where small business owners adapt and remain tenacious in challenging circumstances.

Growth Prospects

The aspirations of small business owners present an intriguing picture. Roughly 40% prefer to remain solo operators, while 42% have plans for moderate growth into small or mid-sized businesses. Only 9% seek aggressive expansion, indicating a shift towards more realistic expectations concerning growth and stability.

Significant Household Contributions

In addition to their economic resilience, small businesses play a crucial role in household finances. Approximately 65% of the respondents rely on their business as their primary income source, contributing over half of their household earnings. Notably, 40% report an annual income exceeding $60,000, with more than 20% earning upwards of $120,000. Recent data indicates that 65% of these small businesses are experiencing steady or rising revenues, a significant recovery from just 57% in April 2025.

The importance of small businesses to local economies cannot be overstated. According to GoDaddy's research, a 1% increase in small businesses correlates with a 6% rise in median household income, along with the creation of approximately eight jobs per new business owner.

The Role of Technology

Modern technology, particularly reliable internet access and advancements in artificial intelligence, has been instrumental for small business owners in maximizing efficiency and productivity. Effective connectivity allows entrepreneurs to establish an online presence while tools like GoDaddy Airo facilitate enhanced customer experience, operational streamlining, and web improvement.

AI technologies are particularly pivotal, as they enable small businesses to overcome challenges by automating mundane tasks and creating new avenues for customer engagement. This adaptability is essential for small businesses to build resilience in the face of ongoing economic uncertainty.

Conclusion

While economic instability continues to be a prevalent concern in the U.S. and beyond, the resilience demonstrated by small business owners is inspiring. The findings from GoDaddy’s research highlight that these entrepreneurs are well-equipped to navigate market volatility through local focus and technological innovation, charting their courses on their own terms. For more insights, visit GoDaddy's Small Business Survey.