New Survey Shows Small Businesses are Optimistic for 2025, but Eager for Washington to Pass Policies to Help them Compete

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Small businesses urge tax simplification and combating inflation to help them meet their goals

(NEW YORK) – America’s small business owners are optimistic about the coming year – but continue to face economic headwinds and are looking to Washington to help them compete, grow and create jobs in 2025 and beyond.

That’s the message from a new national survey by Goldman Sachs 10,000 Small Businesses Voices. Bottom line: Small businesses across the U.S. say they are planning to grow their businesses this year, but they need Congress and the new administration to prioritize tax reform, address inflation, enhance workforce development, cut regulatory red tape, and increase access to capital.  

“Small business owners are optimistic, but that doesn’t mean we aren’t facing real challenges,” said Jessica Johnson-Cope, president of the Bronx-based Johnson Security Bureau, Inc., a third-generation family-run firm. “This is an opportunity for Washington to rethink how it supports small businesses and helps us create economic opportunity. Let’s make sure programs reflect the realities of running a business today in our modern, ever-evolving economy.” 

The survey numbers tell the story:

  • Optimism is high: Nearly seven in 10 (69%) small business owners feel positive about their financial outlook for 2025.
  • Growth plans remain strong: More than three-quarters (78%) plan to grow this year and 46% expect to create new jobs in 2025.
  • However, hiring remains difficult: Of those currently hiring, 89% say they are finding it difficult to find qualified workers, with 62% saying their difficulty in recruiting stems from their inability to compete with larger companies on pay and benefits.
  • Access to affordable capital is out of reach: More than half (53%) can’t afford to take out a loan given current interest rates, leading to a striking 88% saying lower interest rates would help their business.
  • Inflation remains a top concern: 54% identify addressing inflation as their highest policy priority for the new administration, making it the top small business priority.

Tax complexity is also top of mind. More than half (60%) of survey respondents want Congress to simplify the tax code, citing confusing provisions, hard-to-use credits and rules that just don’t fit smaller operations. In fact, 73% said the federal tax code is unfavorable for small businesses. Specifically, small business owners report the following challenges with the tax code: 

  1. Tax credits and incentives not scaled for businesses of their size (63%)
  2. Overly complex and confusing tax code (55%)
  3. Difficulty maximizing expenses (33%)

“We’re not asking for special treatment—we’re asking for a tax system that doesn’t trip us up,” said Johnson-Cope.

As small businesses continue to navigate growth challenges, many also point to burdensome regulations and outdated federal programs as obstacles. Fifty-seven percent said their business is being held back by regulatory red tape and compliance and an overwhelming 95% believe federal programs need to better reflect the realities that small businesses face. With new leadership at the Small Business Administration (SBA), business owners say now is prime time for reform. Nearly nine in 10 (89%) want the agency to modernize – specifically calling for greater access to capital (50%), reduced regulatory burden and red tape (47%), support for more workforce development and training (34%), modernized communication systems and technology (34%), and increased small business procurement goals and accountability (32%).

Small businesses recognize that innovation is key to staying competitive, with 80% of small business owners who use AI citing increased efficiency and productivity. However, 44% said they lack the resources and expertise necessary to successfully deploy it, and 76% support government policies to help small businesses adopt new technology such as AI.

“Small business owners aren’t just watching—they want a seat at the table as Washington tackles big issues in 2025,” said Jill McCarthy, national director of Goldman Sachs 10,000 Small Businesses Voices. “Their message is simple: Listen to us. Work with us. Let’s get this right.” 

Survey of 1,188 Goldman Sachs 10,000 Small Businesses participants conducted by Babson College and David Binder Research from Feb. 10th-Feb 17th, 2025.  The survey included small business owners from 49 U.S. states, 2 U.S. territories and the District of Columbia.

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About 10,000 Small Businesses Voices

Goldman Sachs 10,000 Small Businesses Voices, which in April will mark its five-year anniversary, builds on Goldman Sachs 10,000 Small Businesses and organizes program participants to advocate for policies that matter to them. Learn more at www.gs.com/10ksb-voices

About Goldman Sachs 10,000 Small Businesses
Goldman Sachs 10,000 Small Businesses is an investment to help entrepreneurs create jobs and economic opportunity by providing a comprehensive business education program and access to capital and business support services. To date, 10,000 Small Businesses has served over 16,000 small businesses across the United States. The program has reached businesses from all 50 states, Puerto Rico, and Washington, D.C. Learn more at www.gs.com/10ksb.

About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global financial institution that delivers a broad range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.