SBE - Small Business & Entrepreneurship Council

07/11/2025 | Press release | Distributed by Public on 07/11/2025 09:48

NEW SMALL BUSINESS CHECK UP SURVEY: Strong Economic Outlook and Tax Certainty Position Small Businesses for Vigorous Growth

By SBE Council at 11 July, 2025, 11:12 am

FOR IMMEDIATE RELEASE

Washington, D.C. - Small business owners are entering the second half of 2025 with confidence about the economy and their own financial performance, according to the latest Small Business Check Up Survey released today by the Small Business & Entrepreneurship Council (SBE Council). The survey also revealed that small business owners strongly support the various tax relief and incentive measures in the "One Big Beautiful Bill Act" signed by President Trump on July 4, particularly the move to make permanent key provisions supporting small businesses in the 2017 "Tax Cuts and Jobs Act."

The survey, conducted by TechnoMetrica for SBE Council prior to congressional passage of the "One Big Beautiful Bill Act," found that 71% of small business owners said it was important to make expiring provisions in the 2017 tax cuts package permanent, and a majority anticipated negative effects if the relief and incentives expired - a threat now avoided given that President Trump signed the reconciliation package into law. The survey also found that 83% of small business owners wanted Congress to address the expiring tax provisions before the August recess, a feat that was accomplished well before the summer break.

"Thanks to the leadership of President Trump, House Speaker Mike Johnson, Senate Majority Leader John Thune and other congressional and committee leaders, Congress delivered tax certainty at a critical time," said SBE Council President & CEO Karen Kerrigan. "Permanency is powerful, and will fuel confidence, investment and vigorous growth. Entrepreneurs and small business owners now have a green light to confidently move forward with investment and expansion plans, and strategies to better support their employees. This is a big win for the American economy and local economies across the nation, "observed Kerrigan.

Kerrigan noted the widespread confidence in the business climate, according to the survey, which she predicted would grow stronger now that the tax package has been signed into law. Again, the survey was conducted prior to congressional passage of the "One Big Beautiful Bill Act."

"The fact that most business owners are buoyant and report strong financial performance despite the gloomy forecast being predicted by various experts and financial leaders speaks to the resiliency and adaptability of entrepreneurs, and the opportunities they see 'on the ground.' While they have concerns about the direction of tariff policy, small business owners are confident in their ability to navigate headwinds if they emerge. They can pivot quickly and enjoy widespread access to affordable and innovative tech tools that support efficiency and growth," added Kerrigan.

Strong Economic Sentiment and Financial Optimism: Two-Thirds of Small Business Owners Rate the Economy as Good or Excellent

Two-thirds of small business owners (67%) rate the current business climate as excellent or good (20% rate it as average), and more than three-quarters (76%) are confident about their financial prospects for 2025. Nearly half (49%) expect their finances to improve over the next six months, and over a third (38%) anticipate stability, indicating a broad positive financial outlook among small business owners.

"No doubt, this optimism reflects a combination of Main Street determination and supportive policy steps advanced in Washington on the tax and regulatory front. While tariffs and the direction of tariff policy remain a significant concern for small business owners, most do not report significant effects," said Kerrigan.

The Ghost of Inflation, the Economy and Tariff Policy Chief Concerns - Impact Nuanced

No surprisingly, 80% of small business owners remain concerned about inflation and that it could rear its ugly head, demonstrating the long-term effects of a multi-year inflationary period that challenged small business owners and their teams. On the tariff front, 73% of small business owners express concern about tariffs and the direction of tariff policy, and 9% report "significant negative" effects, with most experiencing slightly negative (44%) or no effect (35%).

"Small business owners want predictable, smart trade policy that won't upend costs or supply chains," Kerrigan said. "The survey shows they are paying close attention to where policy ultimately lands but continue to convey resiliency and optimism. As we see in the survey, the effect is uneven, as tariffs are hitting certain industries harder than others. The broader picture is that the policy ecosystem in general - the direction of tax and regulatory policy, lifting costs and burdens on small businesses - appears to be buttressing the effects of and concerns about tariffs for most small business owners. But make no mistake, they are monitoring the issue closely," noted Kerrigan.

The survey also finds, similar to other Small Business Check Up Surveys conducted during the past three-plus years, that the direction of the economy and an economic concern is a perpetual concern - 73% express concern about a potential slowdown.

"Naturally, small business owners express concern about the economy taking a turn for the worse, yet their own financial performance and positive views about the current state of the economy convey optimism guarded with general concern," said Kerrigan.

Strong Support for Tax Relief Permanency and Other Tax Measures President Trump Popularized

Small business owners overwhelmingly backed President Trump's proposals - signed into law as part of the "One Big Beautiful Bill Act" - to help their employees and customers succeed. Strong majorities support the senior deduction (82%), "No Tax on Tips" (81%), and "No Tax on Overtime" (78%). Moreover, small business owners strongly support making the family and medical leave credit permanent (79%), and improving the child-care tax credit for small businesses (74%), which were included in the package.

"These tax measures directly help workers and families while giving small businesses an edge in attracting and retaining talent," Kerrigan explained. "It's about building a policy environment that rewards work, investment, and entrepreneurship - that's how we grow the economy and spark innovation."

Access to Capital and Workforce Gaps Still Need Solutions

More than half of small businesses (55%) say limited access to capital is holding back their growth, and nearly half (46%) cite a lack of skilled workers as a barrier to operations. While many say they can manage these challenges for now, they remain a drag on potential expansion.

"Capital and human capital are two pillars of small business success," Kerrigan noted. "Congress needs to keep working on solutions that help entrepreneurs find the skilled workers they need and access funding to compete and grow. Both the 'One Big Beautiful Bill' and other bipartisan efforts in Congress address capital access needs, which is a terrific start in tackling this perineal concern among entrepreneurs," said Kerrigan.

New Business Filings Continue to Grow: On a related front, Kerrigan also noted that new business filings continue to grow, demonstrating optimism and opportunity for individuals who are pursuing their dream of business ownership. According to the latest June 2025 data released by the U.S. Census Bureau, total business applications (i.e., applications for Employer Identification Numbers through IRS filings) increased by 2.2 percent in June to 457,407. And high-propensity business applications - applications most likely to turn into businesses with employees - increased by 3.3 percent to 165,555.

"The historically high numbers of individuals taking the first step to establish a business continues to be good news for our economy, competitive choices for consumers, and job creation. People are seeing opportunity across industries, and thankfully technology platforms and tools have vastly lowered the costs of launching a business and finding customers. With passage of the 'One Big Beautiful Bill,' capital access and opportunity have vastly improved, which means startups and small businesses can lead America's economic resurgence," observed Kerrigan.

About the Survey

The SBE Council Small Business Check Up Survey of 527 small business employers was conducted online by TechnoMetrica from June 23-27, 2025, with a credibility interval of +/- 4.4 percentage points. The survey sample reflects a diverse political and demographic makeup of American small businesses: 33% identified as Republican, 28% Democrat, and 37% Independent/Other.

Access the complete survey findings here.


CONTACT:

KAREN KERRIGAN, kkerrigan@sbecouncil.org

SBE Council is a nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For more than 30 years, SBE Council has advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth.

Visit www.sbecouncil.orgfor additional information. X: @SBECouncil

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