NEW SBE COUNCIL SURVEY: Small Businesses Confident about 2025 Year-End Performance – AI, Digital Tools, and Multi-Channel Strategies Driving Growth and Competitiveness

By SBE Council at 23 October, 2025, 12:24 pm

NEWS

FOR IMMEDIATE RELEASE

Washington, D.C. - Small business owners continue to embrace artificial intelligence (AI) and digital transformation as they maintain a generally positive outlook on the economy, according to the latest Small Business Check Up and Tech Use Survey released today by the Small Business & Entrepreneurship Council (SBE Council). The findings reveal that AI and omni-channel marketing are no longer experimental for most small firms; they have become foundational to how most small businesses operate, grow, and compete.

The survey, conducted by TechnoMetrica for SBE Council, found that 84% of small business owners express confidence about their 2025 year-end performance and view economic conditions as generally solid: 60% rate conditions as good or excellent, 28% as average, and 13% as poor. Nearly nine in ten (88%) small businesses report using AI tools, and 73% say these tools have been important to their competitiveness and growth over the past year. Moreover, 91% of respondents report they market or sell across multiple channels, with social media and their business websites as leading platforms, complemented by instant messaging and in-person events. In addition, 30% of multi-channel firms added new sales channels during the past year, reflecting continuous experimentation and adaptation.

"Small business owners are taking charge of their future by embracing AI, digital tools, and tech platforms. Not surprisingly, we see a strong correlation between the adoption of these tools and overall economic confidence and financial performance," said SBE Council President & CEO Karen Kerrigan. "Small business owners have learned to continuously adapt. The norm is to anticipate change, new innovations and digital tools, and shifting preference among consumers. As conveyed in the survey, AI adopters and tech savvy small businesses, plan to invest heavy in new technologies - 88% say they will increase or maintain their investments in AI tools over the coming year."

Kerrigan added: "This is all good news for small businesses. However, the prolonged federal government shutdown threatens to dent confidence and the gains small business owners have made in 2025. Congress needs to open the federal government and return to regular order to support this positive growth and investment, not derail or undermine it."

More Findings: AI Adoption Surges and Expectations are High

According to the survey, small business owners expect AI to reshape their industries: 72% say AI will have an impact over the next three to five years, and nearly half (45%) believe that impact will be major or transformative for their industry. Adoption is already widespread, with small businesses using an average of nearly five tools (4.8) across their operations.

The most common uses include business research, content creation, image and video development, AI-powered email marketing, and financial management tools. Even among existing AI users, 30% report there are additional pain points they wish AI could solve, signaling strong demand and opportunity for further innovation tailored to small business needs.

"The data reflects an important shift: small business owners no longer view AI as experimental or skeptically, they see these tools as essential," Kerrigan said. "Entrepreneurs are using AI in everyday functions to save time, make better decisions, and improve customer engagement."

Among small businesses they have not deployed or invested in AI tools, 77% said they see no reason to use AI in their businesses; 16% identified knowledge barriers in terms of how to use AI; and 15% cited limited resources to invest in AI.

AI a Growth Driver and Strategic Investment.

The primary motivation for adoption is boosting efficiency and productivity (60%), followed by improving customer service and support (42%). Employee response is overwhelmingly positive or neutral (94%), with 58% reporting strong employee engagement and support.

Forty-one percent say AI allows them to spend more strategic time growing the business, while 35% are dedicating more resources to revenue-generating or higher-value projects. In addition, 33% say AI has helped them implement innovative practices that improve customer engagement and retention.

"AI is creating a productivity flywheel," Kerrigan explained. "It frees up time, enabling owners to focus on strategic issues, innovation, and customer relationships, which directly fuel growth."

Moreover, small business owners are demonstrating responsible adoption of AI: Survey respondents say they are training staff or reviewing AI outputs to ensure accuracy and compliance, or hiring outside experts to do so, signaling "responsible" AI adoption and the limits of these tools.

Dynamic Pricing Tools Drive Revenue and Competitive Advantage

More than one in four small businesses (28%) currently use algorithmic, dynamic, or personalized pricing. Among users, the benefits are significant: 52% report improved profit margins, 48% have seen increased revenue, 43% say dynamic pricing has boosted business efficiency, 41% indicate better inventory management, and 40% improved cash flow management, among other benefits.

Businesses not yet using pricing tools still recognize the opportunity: 43% of non-users believe dynamic pricing could help them compete more effectively in the marketplace, especially against larger companies.

"Similar to other AI tools, algorithmic pricing is allowing small businesses to more quickly and efficiently respond to the competitive marketplace and to competitively price their goods or services, which has been a big pain point and an arduous task for many. Innovative pricing tools are of significant benefit to small business viability and growth, and in the end, consumers," said Kerrigan.

Social Media and Multi-Channel Sales Power Growth

Small businesses are heavy users of social media platforms for branding, marketing, and revenue generation. The most widely used platforms are Facebook (59%), Instagram (43%), YouTube (40%), TikTok (33%), LinkedIn (31%) and Amazon (27%). Nearly half (48%) of small business owners who sell through social or e-commerce platforms say those channels make up more than 20% of total sales, which demonstrate that sales are being generated via multiple channels and the various ways consumers like to shop.

Multi-channel sales strategies are now standard: 91% of small businesses use multiple channels to reach customers, including social media (54%), their own websites (53%), and instant messaging tools (26%). Thirty percent of multi-channel users added a new sales channel in the past year, highlighting continued experimentation and expansion.

"It's an overused line but continues to be relevant: Small business owners are meeting customers where they are. Online and through various devices, in-store, at pop-up shops and farmer's markets. Multi-channel selling gives entrepreneurs the opportunity and flexibility to learn more about their customers, to innovate, and improve customer engagement and the customer experience," said Kerrigan.

TikTok Continues to Grow as a Key Platform for Many Small Businesses

TikTok continues to grow as an effective platform for small businesses. Among the 33% of small businesses that use TikTok, 89% say it is important to their business, and nearly half (46%) describe it as critical to their viability. Small business owners also recognize the significance of platform stability, with 79% saying it is important that TikTok remain operational in the United States.

"TikTok is a core revenue and branding engine for small businesses. Platform use by small businesses grows each and every month, as entrepreneurs recognize its value and ROI for sales generation, conveying their unique brand story, and building community."

Strong Economic Outlook: Ongoing Concerns Persist

Small business owners remain optimistic about their performance and the broader economy. Six in ten (60%) rate the current business environment as good or excellent, while only 13% are dissatisfied. Looking ahead, 84% are confident that 2025 will be a positive financial year for their business.

Inflation remains the top issue, with 38% identifying it as a leading challenge and 81% expressing concern about inflation over the next six months. Tariffs are also having an impact, with 12% reporting a significant negative effect and 37% a slight negative effect. Thirty-nine report no impact, showing uneven exposure across sectors.

Capital Access and Labor Issues

While optimism is generally strong, key challenges remain. Thirty percent of small business owners say labor shortages or difficulty finding skilled workers limit their ability to compete or operate at full capacity. In addition, more than half (51%) agree that limited access to capital is restricting their ability to invest, expand, or operate at their ideal capacity.

"Human capital and financial resources are critical to small businesses across sectors," Kerrigan noted. "Even with strong technology adoption and optimism, advancing policy solutions that lower barriers and improve access to abundant capital and labor need to be a priority for Congress to ensure economic opportunity and financial security is sustainable, and attainable for all."

About the Survey

SBE Council's Small Business Check Up and Tech Use Survey of 530 small business employers was conducted online by TechnoMetrica from October 3-9, 2025, with a credibility interval of -+/- 4.4 percentage points. The survey sample reflects the diverse political and demographic makeup of America's small business community: 37% identified as Republican, 32% Democrat, and 26% Independent/Other.

CONTACT:

KAREN KERRIGAN, [email protected]

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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