Amid economic uncertainty, Americans are betting on themselves
Amid economic uncertainty, Americans are betting on themselves
In a climate of economic uncertainty and rising layoffs in the United States, a powerful trend is gaining momentum: More people are betting on themselves. Whether by necessity or by design, thousands are choosing to start their own businesses. According to GoDaddy’s Small Business Research Lab, new online business registrations remain 75% above pre-pandemic levels as of June, signaling that more Americans are choosing entrepreneurship as a path forward.
GoDaddy offers a guide for would-be entrepreneurs who are considering taking the plunge.
Economic worry amidst the 2025 federal shutdown
The U.S. job market is experiencing a steady downward trend with job cuts across a variety of sectors such as tech, media, retail, and finance. Layoffs are now at their highest level since 2020 according to Challenger, Gray & Christmas, and could surpass 1 million by the end of 2025.
According to a HarrisX survey commissioned by GoDaddy in October 2025, the federal shutdown has shaken Americans’ financial confidence:
- 61% of Americans and 76% of federal workers are concerned about their personal finances.
- 63% of federal employees and 41% of Americans have reduced spending.
- 70% of Americans and 67% of federal employees say the experience proves the need to be self-reliant in generating income.
These findings reveal how financial fear is directly translating into a desire for independence.
At the same time, new U.S. business applications remain historically high—a strong signal that amid instability, people are turning to self-employment as a path forward.
From hobby to survival plan
For many, entrepreneurship starts as a hobby or side hustle—a way to earn extra income or explore an activity they’re passionate about. But when layoffs strike or the job market stalls, what was once supplemental quickly becomes a lifeline.
Kara Harrison, a former marketing/advertising director, learned firsthand how to turn a hobby into a career: “I have been practicing yoga for over half my life. I found it at the beginning of my career… I was drawn to the way that moving my body in this puzzle of shapes and focusing on breath made all the external/work worries disappear for a moment,” said Harrison.
“In November 2022 I was unexpectedly laid off from my job and that day, my mind went to, ‘now is the time to open my yoga studio,’” said Harrison.
Harrison’s story reflects what many Americans are doing now: turning uncertainty into opportunity. Today, she is the founder and owner of Yodega Yoga in Chicago, and she knows several former colleagues who have also followed a path towards entrepreneurship.
“My observations about entrepreneurship is that in advertising, where layoffs are often cyclical when client budgets run out or when an agency loses a client, many of my former colleagues open their own shops, whether that is client services, marketing strategy, or creative development,” said Harrison.
Why now may be the time for a new venture
Three key factors exist in 2025 that did not exist decades ago, making the path to starting a new business easier than ever before.
- Lower barriers to entry: Starting a business used to require capital, office space, and a team. Now, a single individual with a laptop can launch a service or product online with minimal startup costs.
- Online platforms: Entrepreneurs no longer need to invest in expensive advertising or software. A website and active social media accounts enable business owners to hire freelancers and creators and work directly with paying customers.
- The upside of AI: Artificial intelligence is making it easier to do more with less. AI-powered tools help entrepreneurs handle tasks that once required entire teams or expensive software.
How to begin
Taking the leap into entrepreneurship does not come without risk. Whether it is born out of a dream or a necessity, important steps to launching a new business include:
- Market research (knowing the target audience and competitors)
- Funding (calculating startup costs and securing capital)
- Legal and tax steps (i.e., establishing an LLC; securing Tax ID)
- Establishing a business name (one that is not already in use)
The name of the business should be memorable, accurately reflect the nature of the business, and resonate with the audience it is trying to reach. Once that name is determined, it is crucial to register a domain name and give the new business an online home to drive customers to.
It is said that “necessity is the mother of invention” and for entrepreneurs, there has never been a better time to begin that journey.
This story was produced by GoDaddy and reviewed and distributed by Stacker.
