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Small Businesses Show Tariff-Proof Resilience, GoDaddy Survey Finds
Two-thirds of U.S. small businesses report zero international exposure
TEMPE, Ariz., Aug. 21, 2025 /PRNewswire/ -- Global economic uncertainty, fuelled by trade negotiations, tariff escalations, and supply chain challenges, continues to put pressure on many U.S. small businesses — particularly those with international exposure. Yet new findings from the GoDaddy Small Business Research Lab reveal a different story among domestic-focused microbusinesses.
According to GoDaddy's July 2025 survey of around 1,400 U.S. small and microbusinesses, most with fewer than nine employees, including many solo entrepreneurs—69% report no international supply chain exposure, while 45% source more than half of their materials within their city or state. In addition, 65% primarily serve local or state customers. These businesses may be less directly affected by global trade disruptions, underscoring how a local customer and supplier base can provide a buffer against tariff-related challenges.
Optimism Remains High Among U.S. Entrepreneurs Despite Economic Uncertainty
- 72% of respondents expect their own revenues to increase or remain stable over the next six months
- 45% believe the broader U.S. economy will hold steady or improve in that same period
"Small business owners recognize it's a challenging economic environment, but our research shows they're prepared and nimble," said Gourav Pani, Chief Business Officer at GoDaddy. "Entrepreneurs are maintaining realistic revenue and growth expectations. This resilience very much resembles what we witnessed during the pandemic, with small business owners again betting on themselves."
Small Business Growth Goals Remain Consistent
- Less than half (40%) of owners prefer to remain solo
- 42% plan moderate growth into small or mid-sized businesses
- Just 9% aim for high-level expansion, reflecting realistic rather than aggressive goals
Small Businesses Help Keep Households Strong
- Two-thirds (65%) of small business owners surveyed who rely on their venture as their primary income source are also household breadwinners, contributing more than half of their household's total earnings
- 40% of those surveyed earn more than $60,000 annually and over 20% earn more than $120,000
- Two-thirds (65%) say their revenues are steady or rising, up from 57% in April 2025
Local communities also benefit significantly from small business growth. GoDaddy's research shows that a 1% increase in the number of small businesses correlates with a 6% rise in median household income. Each new small business owner also creates an estimated eight direct or indirect local jobs.
Technology, from fast and reliable internet infrastructure to advances in AI, is playing a crucial role in helping small business owners accomplish more despite limited time and resources. First, strong connectivity enables entrepreneurs to get online and establish their digital presence. Then, tools like GoDaddy Airo help them grow online—improving websites, streamlining operations, and delivering better customer experiences.
By automating routine tasks and offering new ways to attract and engage customers, AI is enabling small businesses to adapt quickly, overcome challenges, and ultimately build greater resilience.
Economic uncertainty remains a dominant narrative across the U.S. and globe, but GoDaddy's latest research makes one thing clear: small business owners aren't going anywhere. They report feeling largely protected from volatile market conditions and are relying on technology and realistic planning to build their businesses steadily, on their own terms.
For additional insights, visit: https://www.godaddy.com/research/summer-2025-small-business-survey-results/
About GoDaddy:
GoDaddy helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services and accept payments. GoDaddy Airo®, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com
Source: GoDaddy Inc.
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SOURCE GoDaddy Inc.
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