Small business owners are entering 2025 with increased confidence, despite ongoing economic challenges, according to a recent survey by ECNETNews. The survey, which involved 1,200 small business owners (SBOs), revealed that 79% are optimistic about their business outlook, up from 73% in mid-2024. This boost in confidence signifies a stronger expectation for profitability and revenue growth among small businesses.
However, SBOs continue to face hurdles such as inflation and rising operational costs. The survey indicated that 64% of respondents listed inflation as their primary concern, with 55% worrying about taxes and fees. Additionally, concerns over tariffs have more than doubled, rising from 5% in mid-2024 to 13%. In response to these challenges, 41% of SBOs have revised their 2025 spending plans, an increase from 35% the previous year.
Payroll remains the largest expense for these businesses, followed by materials, supplies, and rent. Material costs have emerged as a significant worry for solo entrepreneurs, with 56% highlighting it as a top issue, compared to 43% earlier in the year.
To address mounting costs, two-thirds of SBOs have increased prices on some or all of their offerings, up from 61% in mid-2024. Business owners are actively adjusting their pricing strategies to safeguard profitability in an inflationary landscape.
Access to capital remains crucial for small businesses, with “growth and expansion” and “working capital” being the primary motivations for seeking funding. A significant three out of four SBOs prefer traditional bank loans, while there has been a notable rise in demand for debt restructuring among solo business owners, which surged from 10% to 38%.
“Despite the challenges facing small business owners, the demand for capital and investment in growth remains strong,” an industry expert noted. “In the face of inflation and a turbulent economy, these business owners are committed to their vision, investing in growth, and focusing on long-term success.”
This comprehensive survey provides vital insights into the current landscape of small businesses as they navigate a complex economic environment.
