Small business owners want increased support to adopt new technology to enable economic growth, according to new figures released by GoDaddy today.

Ahead of chancellor Rachel Reeves’ first Budget on Wednesday, GoDaddy’s Venture Forward research project, which includes polling of more than 2,100 British small and microbusiness owners has revealed top demands for entrepreneurs from the new Labour government.

Access to capital (35%) and greater help in the adoption of new technology (28%) were two of the top three asks from business owners to the government, as many look to enhance productivity and competitiveness to stimulate growth.

The demands come as new analysis demonstrates the importance of microbusinesses to the national economy. Every new microbusiness generates five new jobs while just a 10% increase in regional microbusiness density correlates to a £320 hike in median annual wages for full-time workers.

Entrepreneurs say AI can help unlock growth

GoDaddy’s research shows that many entrepreneurs’ believe AI is key to growth. Almost a third (28%), and 43% of those under-30, are leveraging generative AI tools to make them more competitive.

63% have reported a positive business impact, rising to 71% for entrepreneurs under 30. Nearly half (45%) believe AI will help them compete with larger businesses within a year.

Despite this, the UK is lagging behind other major economies such as the US, Germany and Netherlands in AI understanding and use, according to new data, prompting calls from entrepreneurs for increased government support.

Andrew Gradon, head of GoDaddy UK and Ireland, believes AI investment is an easy win for: “AI has the potential to be one of the single biggest facilitators of growth in our economy, but our Venture Forward data is clear: entrepreneurs want more support and funding to help unlock its potential. Microbusinesses are vital to generating jobs and increasing GDP, so improving funding, education and access to AI is an easy win for a new government that has made clear it is focused on growth, growth, growth”.

Microbusiness owners identify three key areas that could boost the uptake of AI:

Boost digital infrastructure

Pursue the expansion of high-speed broadband networks, ensuring that microbusinesses in rural and underserved areas have the connectivity required to utilise AI technologies effectively. Frontier Economics’ recent analysis found that a one-percentage-point increase in broadband availability was found to increase median annual pay.

Improve access to AI Tools and Resources

Discuss how AI can support microbusinesses and SMEs, looking at specific barriers to capital raising.

Support education and training initiatives

If proven successful, continue the AI Upskilling fund to support microbusinesses with AI skills training for their employees. This could be activated through online courses, workshops, or partnerships with educational institutions.

The government could encourage the creation of AI-focused apprenticeships that allow individuals to gain hands-on experience with AI in a business context, thus providing microbusinesses with a pipeline of skilled workers.

Against this backdrop, GoDaddy has launched Airo, its latest online experience to support microbusiness owners get online more quickly, easily, and cost-effectively. GoDaddy Airo offers a host of AI-powered solutions for domain name searches, logo creation, multimedia content, website copy, email marketing, newsletter generation and SEO support.