Despite ongoing economic challenges, the UK experienced a notable increase in small digital businesses surpassing the £100,000 revenue mark last year, showcasing the resilience and adaptability of entrepreneurs, according to the latest Venture Forward report by GoDaddy.
The report indicates that approximately 17% of digital microbusinesses, defined as companies with fewer than 10 employees, achieved a six-figure turnover. This marks a substantial 55% surge from 2022, when only 11% of online microbusinesses reached this level of turnover.
This surge coincides with a growing trend of small brick-and-mortar businesses, particularly independent shops, expanding their operations online in response to the challenges posed by the Covid-19 pandemic.
GoDaddy attributes these findings to the “resilience of UK entrepreneurs,” who have displayed remarkable strength amid the backdrop of increased living costs and higher interest rates.
Further analysis from the research reveals that more than half (54%) of the businesses generating over £100,000 annually were established within the past three years. Moreover, a significant number of digital microbusinesses embarked on their journey with relatively modest initial investments, with 43% starting with less than £5,000 in initial capital.
Andrew Gradon, Head of GoDaddy UK & Ireland, expressed his observations on the remarkable trend, stating, “It is testament to the strength of Britain’s small business community, and the fact that British entrepreneurs really are unstoppable.”
He further emphasized the potential for growth, especially for entrepreneurs with brick-and-mortar-only operations, urging them to diversify and explore additional avenues for sales, considering the minimal cost associated with such expansion.
