Digital start-ups soar during cost of living crisis

Digital start-ups soar during cost of living crisis

Despite challenging conditions, the number of UK digital microbusinesses turning over more than £100,000-a-year grew substantially during 2023, and almost a fifth (17%) now bring in six-figure sums, according to new figures published today. 

The findings come from Venture Forward, a multi-year research initiative by GoDaddy that analyses data from more than half a million UK digital microbusinesses – typically those with fewer than 10 employees. It shows resilience from UK entrepreneurs during the soaring cost of living with the number of microbusinesses turning over more than £100,000 being up from 11% last year. 

The growth is similar for microbusinesses bringing in over £50,000, which stands at 33% today compared with 25% last year. In comparison, the median annual earnings for full time employees in the UK was approximately £34,963 in 2023.

Fifty-five percent of entrepreneurs who own microbusinesses that are turning over more than £100,000 annually say that their website provides the main source of their income.

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