Small Businesses are Optimistic about Growth in 2025, yet Persistent Economic Headwinds Remain 69% of small businesses are optimistic about the financial trajectory of their business in 2025, and 78% have plans to grow their business this year. 46% of small business owners expect to create new jobs in 2025, while 37% expect to maintain the same number of jobs. However, hiring remains challenging for small businesses. 44% of small businesses are currently hiring full-time or part-time employees, but 89% of small businesses hiring are finding it difficult to recruit qualified employees. They cite competition with larger employers on pay and benefits (62%), lack of qualified workers (53%), and high labor costs (52%) as their top challenges recruiting qualified candidates. 33% of small businesses have lost employees or potential employees because their business doesn’t offer the same types of benefits that larger employers offer, such as paid leave, retirement, healthcare, and child care.
Access to affordable capital remains out of reach. More than half (53%) of small businesses cannot afford to take out a loan given current interest rates and 88% said it would help their business if interest rates were to fall. 35% have applied for a new business loan or line of credit in the past year and 80% of them report that it was difficult to access affordable capital.
