Eternal Optimists: Small Business Owners Say They Plan to Grow Despite Concerns Over the Economy, Shutdown

Oct 27, 2025
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Small Business Owners Head to Washington to Advocate for Policies that Support Growth — Including Solutions on Affordable Capital, Workforce, and AI

78% of small business owners are optimistic about the current trajectory of their business, and 74% have plans to grow their business in the next 12 months. During that time, 41% plan to create new jobs, 39% plan to maintain the same number of jobs, and 12% plan to cut jobs.

69% of small business owners personally believe in the American Dream, the idea that anyone, regardless of background, can succeed through hard work and determination, more than double the rate of registered voters who still believe that the American Dream holds true, according to a Wall Street Journal-NORC poll.

When asked which actions from the federal government would help their businesses grow, small business owners pointed to addressing inflation (54%), providing more policy certainty (40%), help offering competitive benefits (40%), and increasing access to affordable capital (35%) as the most impactful steps.

74% of small business owners have plans to grow their business in the next year. They say that the federal government could take action to help their businesses grow by: [Bar chart] Addressing inflation (54%) Providing more policy certainty (40%) Helping offer competitive benefits (40%)
74% of small business owners have plans to grow their business in the next year. They say that the federal government could take action to help their businesses grow by: [Bar chart] Addressing inflation (54%) Providing more policy certainty (40%) Helping offer competitive benefits (40%)

Small business owners shared that they face several significant problems, ranging from difficulty finding and retaining qualified employees (17%) and affordable employee benefits (15%) to customer demand (10%), to inflation (17%), tariffs (17%), access to affordable capital (7%), and the regulatory environment (4%).

Small businesses are operating in an uncertain environment

72% of small business owners say it’s important for their business that policymakers come to an agreement on spending levels to make sure the federal government remains open. Of those who say it’s very or somewhat important, 62% say their customer demand would go down due to economic uncertainty and instability.

Small businesses will be impacted by the ongoing government shutdown. Small business owners say [Bar chart] My customer demand would go down due to economic uncertainty and instability 62% My customers are often government employees and my revenue will be impacted 24% I rely on federal agencies and contractors as part of my business 20% I rely on Small Business Administration services, including loans and support 18% I’m a federal contractor or subcontractor and my revenue will be impacted 16% I rely on federal government licensing and permitting services 9%
Small businesses will be impacted by the ongoing government shutdown. Small business owners say [Bar chart] My customer demand would go down due to economic uncertainty and instability 62% My customers are often government employees and my revenue will be impacted 24% I rely on federal agencies and contractors as part of my business 20% I rely on Small Business Administration services, including loans and support 18% I’m a federal contractor or subcontractor and my revenue will be impacted 16% I rely on federal government licensing and permitting services 9%

Inflation and the rising cost of doing business continue, while access to affordable capital remains out of reach for many

72% of small business owners said inflationary pressures on their business, such as rising prices and labor costs, have increased compared to the past three months. 65% say it is not affordable for average Americans to own and operate a small business.

73% of small business owners are concerned with their ability to access capital, and with good reason. 75% of small business owners who applied for a business loan or line of credit within the last year found it difficult to access affordable capital.

46% of small businesses expect the recent rate cut by the Federal Reserve to have a positive impact on their business, primarily by stimulating consumer spending (64%), lowering borrowing costs (56%), and creating opportunities to refinance existing debt (24%).

Hiring remains a challenge for small businesses, as they compete with larger employers on pay and benefits

91% of small businesses that are currently hiring are finding it difficult to recruit qualified employees. Their top challenges are competition with larger employers on pay and benefits and a lack of qualified workers.

Small business owners who are finding it difficult to recruit qualified employees cite these challenges: Competition with larger employers on pay and benefits 63%. Lack of qualified workers 62%. High labor costs 52%. Limited labor supply / worker mobility 36%. Insufficient availability of affordable child care 13%. Inability to accommodate desire for remote work 12%.
Small business owners who are finding it difficult to recruit qualified employees cite these challenges: Competition with larger employers on pay and benefits 63%. Lack of qualified workers 62%. High labor costs 52%. Limited labor supply / worker mobility 36%. Insufficient availability of affordable child care 13%. Inability to accommodate desire for remote work 12%.

AI Presents a Major Opportunity for Small Businesses—But Many Still Lack the Tools and Expertise to Fully Adopt It

72% of small businesses are currently using artificial intelligence (AI), with an additional 7% planning to implement it within the next year.

Nearly all small businesses using AI say it’s having a positive impact on their business, and a majority (65%) say AI tools and resources can help level the playing field with bigger businesses. 

94% of small businesses using AI said it has had a positive impact on their business because it: [Bar chart] Increases efficiency and productivity (85%) Provides better data for decision making (50%) Streamlines operations (50%) Q55
94% of small businesses using AI said it has had a positive impact on their business because it: [Bar chart] Increases efficiency and productivity (85%) Provides better data for decision making (50%) Streamlines operations (50%) Q55

81% of small businesses say implementing AI will be essential for their business in the next 5 years.

Yet only 12% of small businesses using AI say they are fully integrating AI into core operations. 49% are actively using AI in some areas but do not consider it central to operations, while 38% describe themselves as experimenting with AI but not yet using it consistently.

And even among the small businesses already using AI, 45% say a lack of technical expertise and 47% cite difficulty choosing the right AI tools as barriers to integrating it into their businesses.

Small businesses overwhelmingly want more training and support to successfully implement AI:  88% of small business owners said more training or support would help them successfully implement AI into their business.

81% of small businesses using AI say AI is augmenting, not replacing, their workforces. Small businesses use AI to enhance employee productivity (61%) and automate administrative tasks (56%), improve customer engagement and service (41%), train and upskill (27%), and recruit and hire employees. (15%).

AI is supporting small business workforces, not replacing them. Small businesses are using AI to: [Bar chart] Enhance employee productivity 61%. Automate administrative tasks 56%. Improve customer engagement and service 41%. Train and upskill employees 27%. Recruit and hire employees 15%.
AI is supporting small business workforces, not replacing them. Small businesses are using AI to: [Bar chart] Enhance employee productivity 61%. Automate administrative tasks 56%. Improve customer engagement and service 41%. Train and upskill employees 27%. Recruit and hire employees 15%.

Small Business Owners Call for a Seat at the Table in Washington

81% of small business owners believe small businesses don’t have enough of a voice in Washington, and they’re heading to D.C. to change that. Ahead of the 10,000 Small Businesses Summit this October, 97% of small business owners believe it’s important that small businesses' perspectives are considered when policymakers debate and develop policy.

Small Business Owners Call for a Seat at the Table in Washington 84% of small business owners believe small businesses don’t have enough influence in Washington 97% of small business owners believe it’s important that small businesses perspectives are considered when policymakers debate and develop policy. Over 2,000 small business owners are heading to Washington to make their voices heard.
Small Business Owners Call for a Seat at the Table in Washington 84% of small business owners believe small businesses don’t have enough influence in Washington 97% of small business owners believe it’s important that small businesses perspectives are considered when policymakers debate and develop policy. Over 2,000 small business owners are heading to Washington to make their voices heard.

99% believe it’s important that small businesses have a seat at the table in Washington.