Landmark study shows number of young entrepreneurs has doubled but North-South divide remains

Venture Forward
  • New data from GoDaddy reveals that the percentage of microbusiness owners under 35 has more than doubled since the start of the pandemic
  • Businesses formed after March 2020 are also more likely to have been started by women, and people from minority ethnic groups and disadvantaged backgrounds
  • However, the microbusiness landscape is still dominated by a North-South divide
  • The Venture Forward study from GoDaddy analyses the impact of 2.3 million microbusinesses on their communities and the country

16 March 2022: A landmark study* of more than two million UK businesses from GoDaddy Inc. [NYSE: GDDY], the company that empowers everyday entrepreneurs, reveals how the make-up of British microbusiness owners has changed since the start of the pandemic and their importance to local economics.

A new breed of entrepreneur emerges

The release of Venture Forward data saw GoDaddy partner with, Professor George Saridakis, Professor of Entrepreneurship and Small Business at Kent Business School, to analyse the impact of 2.3 million businesses on their communities and the country. The results show that the percentage of those start-up owners aged under 35 has more than doubled since March 2020, rising from 16.4% to 34%. Among this group, the proportion aged 18-24 has soared from just 1.7% pre-pandemic, to 8.6% in the two years after the Covid-19 outbreak.

Encouragingly, the demographics of entrepreneurs have also started to become more diverse. The percentage of microbusiness owners who are female has risen from 32% pre-March 2020 to 39.8% in the months since, while the proportion from minority communities has risen from 13.2% to 15.1%.

The representation of business owners from minority ethnic groups is also gradually increasing. Black founders account for 5.4% of pre-pandemic businesses and 6.6% among those created after March 2020. The corresponding figures for Asian entrepreneurs are 10.1% pre-pandemic and 11.9% after it began.

GoDaddy’s research highlights that many of these microbusinesses may have been born out of economic necessity during a turbulent time for people’s jobs and earnings. Prior to the pandemic the number of microbusiness owners who were unemployed before starting their business was 5.7%, while those in part-time work was 7.9%. These figures have risen to 7.3% and 11.7% respectively since March 2020.

The enterprise landscape still dominated by a North-South divide

Despite a shift in the demographics of those setting up microbusinesses, the Venture Forward dataset shows that the landscape is still dominated by a North-South divide. The top three regions where entrepreneurs live are the same before and after March 2020: London (21.7% / 22.6%), the South East (18.5% / 17.0%) and the South West (10.2% / 9.8%).

Even more compellingly, by mapping the concentration of microbusiness owners against local population sizes, GoDaddy has been able to produce a ‘venture density’ ranking for every constituency in Great Britain. The top 14 entries are all in London, led by the Cities of London and Westminster with 13.33 microbusinesses for every 100 people, Hackney South and Shoreditch in second place with 5.41, and Islington South and Finsbury in third with 4.99.

In fact, of the 50 constituencies with the highest venture densities, only six are not in London, South East or South West. These are: Manchester Central (1.91), Glasgow Central (1.80), Hazel Grove (1.75), Solihull (1.71), Edinburgh North and Leith (1.67) and Birmingham Ladywood (1.59).

The three constituencies with the lowest venture densities are Merthyr Tydfil and Rhymney in Wales (0.20), Workington in Cumbria (0.21) and Washington and Sunderland West (0.23).

Microbusinesses have the power to help level-up disadvantaged communities

Following the launch of the Venture Forward dataset, GoDaddy has committed to sharing its research findings with national and regional policymakers. It aims to improve knowledge of the microbusiness landscape, and to help create opportunities for microbusiness owners across the country to flourish and their communities to become more prosperous.

Ben Law, Head of GoDaddy UK, said: “There are 5.3 million microbusinesses in the UK but very few studies focus specifically on companies with under 10 employees. As a result, microbusinesses are under-researched, misunderstood and under-served.

“With the right policy infrastructures in place, microbusinesses have the power to contribute to levelling-up disadvantaged areas. Our research shows that over half of all microbusinesses turn over more than £25,000 a year and three quarters employ at least one other person. Put simply, the more microbusinesses there are in a community, the better the job prospects and finances of the people that live there.

“At GoDaddy, we empower everyday entrepreneurs and it’s our mission to help create opportunities for anyone to succeed. After all, microbusinesses are the engine of the British economy. When they thrive, we all do.”

To find out more about GoDaddy’s Venture Forward study, visit

https://www.godaddy.com/ventureforward/gb-microbusiness-report

ENDS

For more information, please contact MHP Mischief: godaddy@mhpc.com

Notes to editors:

* The Venture Forward study involved analysis of 2.3 million microbusiness owners in the UK, and academic research into correlations with official data from the Office for National Statistics and the UK Household Longitudinal Study, led by Professor George Saridakis from Kent Business School. The academic analysis was complemented by a survey of such as 2,045 GB microbusiness owners, conducted by Advanis in December 2021.

About GoDaddy

GoDaddy is empowering everyday entrepreneurs around the world by providing all of the help and tools to succeed online and in-person. GoDaddy is the place people come to name their idea, build a professional website, attract customers, sell their products and services and manage their work. Our mission is to give our customers the tools, insights and the people to transform their ideas and personal initiative into success. To learn more about the company visit www.GoDaddy.com

Thomas joined the GoDaddy EMEA team in 2017, following the acquisition of HEG as Head of PR and Communications, UK. He leads PR efforts for EMEA brands, introducing a new customer benefit led approach. Previously to joining GoDaddy, Thomas worked as a journalist at The Independent. Thomas holds a BA (Hons) from The University of Exeter.