The 2025 Business Leaders Outlook survey by Chase Insights revealed that small businesses are navigating economic uncertainty with strategic planning in the New Year. The survey reflects a deeper focus on stability, as business leaders are turning inward, concentrating on their operations and areas within their control. The survey showed that economic uncertainty remains a significant consideration for business leaders, but many are meeting it with cautious optimism. More than two-thirds of respondents (68 percent) believe that small businesses will continue to be the driving force of economic growth, reflecting confidence in their resilience and adaptability.

Other key survey findings include the following:

• 60 percent of respondents are optimistic about the local economy, up slightly from 57 percent in the 2024 midyear pulse survey, with many leaders seeing opportunities within their immediate communities.

• Respondents from businesses with Black and Hispanic owners are even more confident, reporting significantly higher optimism scores at nearly all levels.

• 42 percent of respondents expect interest rates to decline significantly in the coming year, providing some relief to businesses navigating financing challenges.

 
While leaders remain optimistic about their own operations, they are closely monitoring external factors such as inflation, interest rates and geopolitical developments. Strategic planning and flexibility remain vital tools for navigating these complexities, according to the survey.

Resilience continues to be a cornerstone for small business leaders in 2025. The survey revealed that 77 percent of respondents believe they can “weather any storm,” pointing to their strong teams and loyal customers as the source of their confidence. To strengthen their positions amid the current uncertainty, leaders are focusing on key operational adjustments. These include improving cash flow management, adjusting pricing strategies and streamlining operations to mitigate rising costs and external pressures.

Inflation remains the most significant challenge for small business owners in 2025, and most expect that higher costs are here to stay. Businesses are feeling the pressure on multiple fronts, with 59 percent of respondents identifying wages as their primary cost driver, marking a 10-percentage point increase compared with the previous survey. To adapt, businesses are employing a range of strategies. Fifty-six percent of survey respondents have raised prices strategically to offset higher costs, while others said they are streamlining operations and exploring new suppliers to manage expenses without compromising quality.

Most small business owners indicated they believe higher costs for labor, rent, materials, energy and shipping are here to stay. The survey said.

The survey also outlined several priorities for small businesses in 2025 as they prepare for the future, including continued investment in artificial intelligence (AI) and technology to enhance efficiency and competitiveness; strategic hiring and retention efforts to address talent shortages and build strong teams; and resilience-focused strategies to adapt to inflation and other economic pressures.