Want to help the economy recover more fully? Support small business

There’s a correlation between the number of ventures in a community and its ability to be economically resilient, according to new research. 

What do we know from the past about how communities can rebuild after hardship—after the 2008 recession, after a flood or after a hurricane?  Can we learn from our past to navigate our future?  

According to a new study, one of the best things we can do to recover may be to support the small businesses in our community. 

In a recent study released by GoDaddy in partnership with the University of Iowa and Arizona State University called Venture Forward, a group of researchers analyzed 20 million online ventures in 30,000 zip codes across the country. One of the major insights from the body of research is that  following the 2008 economic recession, there’s a suggested link between a community’s amount of economic recovery and the number of ventures in that community. 

I talked to Robert Brown, Sr. Director of Business Analytics at GoDaddy, Karen Mossberger, Professor or Public Affairs at Arizona State University, Scott Swenson, Regional Director, America’s Small Business Development Commission Iowa, and Amber Khan-Robinson & Kibwe Robinson, husband and wife duo, and Managing Partner and Owner of MokiPops, a business that makes handcrafted, vegan popsicles based in Atlanta, GA, about resiliency, recovery and the powerful impact small businesses have on our economy and our society.

Watch our conversation here: 

In speaking to entrepreneurs across the country, one thing is ringing true across the board: We need to support each other. To truly belong in a community you can’t just take—you need to give as well. The spirit of generosity we’re seeing across America both for and from everyday entrepreneurs is inspiring and critical to not just the survival of small businesses, but to the recovery of our broader economy as well. 

Behind these small businesses are everyday people. They’re our neighbors who sell local honey or sourdough bread, the barber who cuts our hair, and the fitness instructor that leads our favorite dance class. They’re entrepreneurs who are woven into the fabric of our communities. By doing what they love and making their own way, they’re giving back by being in service of their communities. They’re not just giving people what they want and need—you need to exercise or you want honey for your tea—they are also spurring more transactions through an ecosystem of supply and demand as well as reinvesting their money back into the community. They donate to our kid’s fundraisers and sponsor our local festivals, and they shop at other local businesses. This helps keep things moving even during times of crisis. 

It’s these everyday entrepreneurs who have also been hit the hardest by COVID-19—with Main Street closed, a nosedive in sales and massive processing delays for emergency loans and grants. Bringing their stories to the surface is essential because of how much they contribute to our local communities and our society as a whole. They drive the economy from the grassroots level, in addition to traditional enterprises and corporations.   

There’s a glimmer of hope when we look at the data and stories from the last economic disaster to hit our country. Whether it’s through crafting new policy or being a more intentional consumer, it makes a difference when you support the everyday entrepreneurs running millions of ventures across our country. 

Check back for more conversations with GoDaddy’s entrepreneur-in-residence, Scott Shigeoka. He’ll be chatting with industry experts and sparking conversations about the issues that are impacting us most during these challenging times.

The information contained in this blog is provided for informational purposes only and should not be construed as an endorsement or advice from GoDaddy on any subject matter.