26 February 2024 , 10:17
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The UK saw a rise in small digital businesses earning over £100,000 last year despite ongoing economic challenges, new data reveals.
About 17% of digital microbusinesses, those with fewer than 10 employees, now boast a six-figure turnover, says GoDaddy's latest Venture Forward report. This is a 55% increase from 2022, when only 11% of online microbusinesses achieved this level of turnover.
This growth comes as more small bricks and mortar businesses, like independent shops, have started selling online due to the Covid-19 pandemic. GoDaddy suggests these findings show "resilience from UK entrepreneurs" against a backdrop of rising living costs and higher interest rates.
The study also discovered that over half (54%) of businesses now turning over more than £100,000-a-year were started in the past three years. It also revealed that many digital microbusinesses needed relatively small initial investments, with 43% starting with less than £5,000 of initial capital.
Andrew Gradon, head of GoDaddy UK & Ireland, said: "It is remarkable to see that so many entrepreneurs have built six figure businesses many with very minor initial investment and that the trend is going upwards, as we've seen an increase of 55% on digital microbusinesses bringing in over £100,000 revenue."
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"It is testament to the strength of Britain's small business community, and the fact that British entrepreneurs really are unstoppable. Entrepreneurs who operate bricks and mortar only businesses are potentially missing out on huge growth at minimal cost, so there has never been a better time to diversify and sell in more ways."