Small digital firms, also known as microbusinesses, are making a splash on the UK market, with nearly one in five reporting a six-figure annual turnover.

GoDaddy’s new Venture Forward report revealed that digital microbusinesses, those with fewer than 10 employees, are growing in number across the UK, and now contribute to 32% of private sector employment, and 19% of total economic output.

“Despite their small size, microbusinesses are growing,” Gradon said.  “According to our data, in the UK alone, there are about of these ventures with a unique domain and an active website, since March 2020.”

The small nature of digital microbusinesses means that data collection can fall from the list of priorities, leading these small businesses to often be overlooked in public debate and their role rarely acknowledged.

This is despite 17% of all microbusinesses earning upwards of £100,000 a year.

Further, one in three microbusiness owners are breadwinners in their household, contributing 51% or more to the total household income.

Microbusinesses also appear to be closing the gender gap, with 42% of them in the UK owned by women.

Millennials are also making their mark on the landscape, with 45% of microbusinesses owned by those aged 25 to 39.

The 2023 report showed that while confidence in the economy was down in August 2023 (17%) compared to January (18%), business confidence maintained itself at 55% during the same period.

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Digital microbusiness owners reported that some of their top challenges included online marketing (50%), effectively getting their business website online (25%), and accessing finance capital (22%).

Stressors included finance worries 61%, maintaining a work-life balance (56%), with customers (28%) behind.

“Microbusinesses matter, and their impact is felt,” Gradon concluded. “Their enormous economic contribution drives job creation, annual median pay, and local GDP at the constituency level.”