The small business landscape on Nextdoor is thriving—and it's more influential than you might think. With 3.2 million SMB owners now active on our platform (up 18% year-over-year), we're seeing a powerful community of entrepreneurs who are not only building their businesses locally, but also making purchasing decisions that extend far beyond their storefronts.
Today, we're sharing insights from our latest US SMB Owners research that reveals who these business owners are, what challenges they face, and how brands can meaningfully support and reach this highly accessible audience.
A Growing, Engaged Community of Entrepreneurs
Small business owners on Nextdoor represent a diverse ecosystem spanning every industry imaginable. Home services lead the way at 37% of business pages, followed by professional services (22%), health (9%), and retail (7%). These aren't just casual side hustles—54% have been operating for more than a decade, and half work independently with no employees, demonstrating the grit and determination that defines American entrepreneurship.
Geographically, SMB owner concentration is highest in Florida and Texas markets, with Miami-Fort Lauderdale, Atlanta, Orlando, Houston, and Dallas claiming the top five spots. But this audience extends nationwide, with significant presence in Charlotte, Denver, Phoenix, Boston, and Nashville rounding out the top ten.
Demographically, these business owners skew slightly male (51%) and younger than Nextdoor's overall audience, with particularly strong representation in the 25-44 age range. They're digitally savvy, community-focused, and—most importantly for brands—they're the decision-makers.
What Drives Small Business Owners
Understanding what motivates SMB owners reveals opportunities for authentic brand connections. Their top drivers are:
- Doing what they love (72%)
- Growing their business (62%)
- Providing for their families (58%)
- Supporting their communities (54%)
These motivations paint a picture of business owners who are passionate, growth-oriented, and deeply connected to their local neighborhoods—exactly the qualities that make them such engaged Nextdoor members.
The Challenges They Face (And How Brands Can Help)
When we asked about their biggest challenges, finding and retaining customers topped the list at 52%, followed by dealing with rising costs and inflation (47%) and standing out from competitors (43%). Budget constraints emerged as the single biggest advertising hurdle, with 47% citing insufficient funds as their primary obstacle.
The good news? Small business owners told us exactly what would make them feel most supported by national brands:
- Offering discounts (37%)
- Featuring SMBs in advertising campaigns (27%)
- Sharing educational or how-to content (25%)
- Partnering with local communities (25%)
When it comes to choosing which brands and vendors to buy from, affordability leads at 63%, followed closely by reliability and quality (59%). This audience values customer service (44%), reputation (29%), and convenience (28%)—all factors that brands can emphasize in their messaging.
A Highly Accessible Purchasing Audience
Here's where this audience becomes especially valuable for brands: 66% of SMB owners on Nextdoor are directly responsible for purchasing decisions for their businesses. An additional 18% require employees to shop only from approved retailers or vendors that they select.
This means that when you reach an SMB owner on Nextdoor, you're often reaching the ultimate decision-maker—someone who can implement a purchasing decision without navigating layers of approval. And these aren't small purchases: 60% spend over $10,000 annually on operating expenses, marketing, and supplies (excluding payroll and rent), with more than a third maintaining budgets exceeding $25,000.
Even more encouraging, 4 in 10 SMB owners have taken action after seeing a business-relevant ad on Nextdoor in the past three months, with 25% clicking through to learn more.
How SMB Owners Use Nextdoor for Their Business
Small business owners come to Nextdoor with clear intentions: 72% use the platform to gain new business, 31% to better understand potential customer needs, and 29% to provide advice to neighbors. Nearly three-quarters consider Nextdoor at least somewhat useful for their business.
Where Nextdoor delivers the strongest impact:
- Customer leads (29%)
- Local reputation building (27%)
- Repeat customers (18%)
Business owners also shared what would make Business Pages even more valuable to them: the ability to showcase customer reviews and testimonials (44%), chat or messaging options (40%), customizable links (33%), and "Request a quote" or "Check availability" features (31%).
The Advertising Landscape
Facebook and Instagram currently lead as the most popular advertising platforms among SMB owners (40%), with Nextdoor ranking second at 21%, tied with Google. 53% of Nextdoor advertisers rate results as on par with other platforms, and importantly, 1 in 5 believe campaign results are typically better on Nextdoor.
Most encouraging for the platform's future: advertising budgets are expected to remain stable or grow, with 51% of advertisers planning to maintain or increase their Nextdoor investment over the next six months.
The key factors that would motivate increased investment are:
- Lower pricing (50%)
- Enhanced targeting capabilities (34%)
- More streamlined ad-creation tools (29%)
- Proof of ROI or case studies (25%)
Reaching SMB Owners Effectively on Nextdoor
For brands looking to connect with this influential audience, our research points to several strategic opportunities:
- Lead with value and affordability. Given budget constraints and the importance of cost in purchase decisions, transparent pricing, discounts, and clear value propositions resonate strongly.
- Build trust through social proof. SMB owners value reliability, quality, and reputation. Featuring testimonials, reviews, and real success stories from other small business owners creates credibility.
- Focus on hyperlocal reach. With most businesses operating from a single physical location and deep community connections, tight geographic targeting (1-3 mile radius) with local success stories performs well.
- Simplify the path to action. Low-friction CTAs like "Request a quote," "Check availability," or click-to-call options address the time constraints and workload management challenges these busy owners face.
- Provide education, not just promotion. A quarter of SMB owners appreciate educational and how-to content. Positioning your brand as a helpful resource—not just a vendor—builds longer-term relationships.
Looking Ahead
The small business owner audience on Nextdoor represents one of the platform's most valuable and fastest-growing segments. These are decision-makers with purchasing power, community influence, and a demonstrated willingness to engage with brands that understand their needs and challenges.
As we continue investing in Business Page features, advertising tools, and resources that serve this community, we're seeing opportunities for brands to move beyond traditional B2B marketing and create authentic connections with entrepreneurs in the neighborhoods where they live and work.
The key is approaching this audience not as a monolithic segment, but as individual business owners with specific challenges, clear motivations, and the authority to make immediate purchasing decisions when the value proposition is right.
Want to explore the complete findings? This summary highlights key insights from our research, but there's much more to discover. For the full report with detailed data, additional audience segments, and strategic recommendations for your campaigns, reach out to Jacob Chavis, Customer Analytics & Insights Manager, at jchavis@nextdoor.com. Our team can help you apply these insights to reach high-intent neighbors at the moments that matter most.
