Nearly half of U.S. small and microbusiness owners — which can include independent and buy-here, pay-here dealerships — expect the national economy to weaken in the coming months. Despite the outlook, most still believe their own businesses will grow, according to a new survey data released on Monday by GoDaddy.

In the latest findings from the GoDaddy Small Business Research Lab, formerly known as Venture Forward, 49% of 2,100 U.S. microbusiness owners — defined as operators who have less than 10 employees — predicted a weaker economy in the next six months. That is up 17 points from last year.

Even so, researchers found that 66% of respondents have positive revenue expectations, and only 9% forecast a sales decline.

“Small business owners are realistic about the economy, but they believe in themselves,” GoDaddy CEO Aman Bhutani said in a news release. “GoDaddy’s research shows they remain intent on pushing their small businesses forward.”

Researchers pointed out the GoDaddy Small Business Research Lab findings reflect a steady shift over time.

In 2023, 73% of microbusiness owners said they expected to grow revenue in the first six months of the year. Now in 2025, it stands at 66%.

“Most respondents still expect growth, clearly, but the trend indicates weakening optimism,” researchers said.

GoDaddy indicated entrepreneurs are also adjusting their long-term goals, with 40% now saying they plan to remain solo entrepreneurs — up from 36% last year — versus aspiring to build mid-size or corporate enterprises.

“This points to a growing interest in right-sized businesses that match owners’ lifestyles and risk tolerance,” researchers said.

While optimism holds, the GoDaddy survey determined that cost pressures are rising and showing up not just in what small businesses pay, but what they can charge.

More than half (52%) of respondents cited limited cash flow as their biggest financial barrier, but existing expenses (34%) and pricing pressure on goods and services (33%) ranked highest among specific cost challenges, according to the survey.

GoDaddy also mentioned that one in three owners (33%) also named financial strain as their primary source of stress — ranking it above challenges like adopting new technology, managing vendors, or finding and retaining customers.

Researchers went on to say that access to capital, often a major hurdle for new businesses, appears to be improving. Only 8% of owners say it is their top challenge, down from 10% registered in the previous year’s GoDaddy research.

The news release also included perspective from Leo Lopez, who owns La Fenice Pizza in San Jose, Calif.

“The economy is definitely uncertain right now, but as a small business owner, you learn to live with that,” Lopez said. “I’ve had to adjust, simplify, and focus on what really works, and that’s helped me grow stronger.

“For me, resilience isn’t about being unaffected. It’s about finding a way to keep going, even when things get unpredictable. That’s how I’ve built my business, and I think a lot of us are doing the same,” Lopez went on say.