Surge in Small Digital Firms Making Over £100,000

Surge in Small Digital Firms Making Over £100,000

Recent data highlights a significant rise in the number of small digital businesses across the UK achieving a turnover exceeding £100,000, underscoring their resilience amid economic challenges, as per findings from a GoDaddy report.

According to the latest Venture Forward report by GoDaddy, approximately 17% of digital microbusinesses, defined as companies with fewer than 10 employees, now boast a six-figure turnover. This marks a notable 55% increase from 2022 when only 11% of such microbusinesses attained this level of revenue.

The surge in high-earning digital microbusinesses coincides with a trend of traditional brick-and-mortar establishments, including independent shops, expanding their operations online in response to the impacts of the Covid-19 pandemic.

GoDaddy's report highlights the resilience of UK entrepreneurs amidst challenges such as the rising cost of living and increased interest rates. Of particular note is that over half (54%) of businesses surpassing the £100,000-a-year turnover threshold were established within the past three years.

Moreover, the research reveals that many digital microbusinesses commenced operations with relatively modest initial investments. Approximately 43% of these ventures began with less than £5,000 in startup capital.

Andrew Gradon, head of GoDaddy UK & Ireland, expressed admiration for the entrepreneurial spirit prevalent in Britain, emphasizing that numerous entrepreneurs have successfully built six-figure businesses with minimal initial investment. He notes the upward trajectory in the trend, citing a 55% increase in digital microbusinesses achieving over £100,000 in revenue.

Gradon further highlights the potential for growth and diversification for entrepreneurs, suggesting that those solely focused on brick-and-mortar operations might be missing out on significant opportunities for expansion at minimal cost. He encourages entrepreneurs to explore diverse selling avenues, emphasizing the current opportune climate for doing so.

Article by The Standard