The number of Generation Z and millennial microbusiness owners grew faster before 2020 compared to Generation X and baby boomers, especially in Pittsburgh, where the proportion of microbusiness owners under 40 more than doubled from 21% to 47% since 2019. Venture Forward, a unique research initiative by GoDaddy established in 2018, studies the impact of online microbusinesses on local economies. It defines microbusinesses as those with fewer than 10 employees, a unique domain, and an active website.

Significant Trend

There is a noticeable shift in goals between Gen Z, millennial, and baby boomer microbusiness owners. Less than half (47%) of baby boomers aim to make their business their main source of income, compared to 77% of Gen Z and millennials who have this goal.

The Research

GoDaddy’s Venture Forward research initiative offers a detailed look at the attitudes, demographics, and needs of microbusiness entrepreneurs. This U.S. national survey, which started in 2019, is conducted twice a year, usually gathering responses from over 3,500 entrepreneurs each time to identify trends and provide insights for microbusiness advocates.

GoDaddy examines over 20 million online microbusinesses in the U.S. that have a unique domain and active website. These businesses are often too small or too new to appear in government statistics. Despite their size, they have a significant impact on the U.S. economy; for instance, each online microbusiness creates an additional 6.7 jobs at the county level.

Entrepreneurial Spirit

Younger generations appear to be more entrepreneurial. 31% of Gen Z and millennials always dreamed of starting their own businesses, compared to 22% of Gen X and 14% of baby boomers.

ZenBusiness predicts that the Class of 2023 will become the most entrepreneurial generation in U.S. history, driven by globalization, technological advances, and the gig economy.

Financial Challenges

Despite their ambitions, Gen Z and millennials face more challenges in making their microbusiness their primary income source. 9% of them report stress from environmental challenges, compared to 4% of baby boomers. Additionally, 46% of Gen Z and millennials have less than one month of cash reserves, while 50% of Gen X and 64% of baby boomers have more than one month of cash available to support their business.