Looking ahead in 2025, we’ve considered how recent events and market dynamics will shape top small business trends for 2025. Through our work serving SBDCs across the U.S., we have a unique vantage point of the national landscape and have compiled the 2025 small business trends worth noting as you start the new year.
Focus on Customer Experience
Driven largely by advanced technology, small businesses will place a greater emphasis on enhancing customer experience by leveraging personalization and utilizing artificial intelligence. A survey from HubSpot showed 86% of customer experience leaders believe that AI will play a pivotal role in transforming how small businesses analyze and predict consumer behaviors. Whether you’re a beauty salon or food manufacturer, customer experience is essential. Additionally, the continued evolution of loyalty programs will be crucial, as businesses aim to reward repeat customers with exclusive offers, discounts, and early access to new products or services. For 2025, small businesses will use data sourced from tools like AI to create immersive experiences that go beyond transactional. These initiatives offer brands the chance to build stronger communities with consumers by engaging with them on digital platforms where they are active.
Social Commerce Accelerates
Social selling is rapidly becoming a vital tool for small businesses to connect with potential customers. Research compiled by CapitalOne concluded that 40.4% of online consumers shopped on social media this past year. While many small businesses plan to sell online through their own website, utilizing social accounts can be a cost-effective way to reach niche markets and bypass traditional advertising routes. The number of social media users in the United States is expected to grow by 26 million users from 2024 to 2029. To attract the attention of new users, small businesses will need to employ marketing strategies that perform well on social media. This could include partnering with product ambassadors and utilizing other digital marketing tools powered by AI. Social media platforms will increasingly transform into dynamic e-commerce hubs, shaping the future of online shopping for the foreseeable future.
Potential Tariff Impacts
In 2025, businesses and consumers may experience increased costs due to proposed U.S tariffs. Small businesses relying on imported goods – whether tomatoes or car parts – may experience higher prices from suppliers. According to the National Retail Federation, “The increased costs as a result of the proposed tariffs would be too large for U.S. retailers to absorb and would result in prices higher than many consumers would be willing or able to pay” which could reduce consumer spending power by $46 billion to $78 billion. While tariffs can result in numerous challenges for small businesses, they also create many opportunities. Owners may rethink their location strategies, adopt new technologies, and explore domestic alternatives. Governments may introduce more incentives to encourage local production as well. Small businesses that stay informed and ahead of tariff impacts will be better positioned to navigate its complexities.
Sustainability & Green Business Practices
In recent years, consumers have called on their favorite brands to take initiative with sustainability efforts. A study shows that Gen Zs (59%) and millennials (60%) are willing to pay more for sustainable products and services. Looking ahead, sustainability and green business practices will be more crucial than ever for small businesses aiming to stay competitive and appeal to environmentally conscious consumers. Practices such as reducing carbon footprint, utilizing renewable energy, and adopting eco-friendly packaging are on many consumers’ radar. Recent surveys reported that 84% of consumers who responded will alienate themselves from a brand or company with poor environmental practices. Through 2025, small businesses committed to sustainability may attract loyal customers as environmental responsibility becomes a key factor in purchasing decisions.
Information Security
Increasing focus on information security in 2025 will be important for small businesses. The most recent FBI Internet Crime report identifies receiving a total of 880,418 cyber-attack complaints with an estimated $12.5 billion in losses. A survey conducted by the U.S. Chamber of Commerce found that for 60% of small businesses, cybersecurity threats remain a top concern. As cyber threats grow, small businesses will increasingly prioritize cybersecurity using tools to protect customer data and prevent breaches. This will be especially critical for small businesses that handle sensitive customer information or operate in regulated industries. Innovation in the artificial intelligence industry will aid efforts by providing advanced threat detection and automating routine security tasks. By adopting a proactive information security strategy, small businesses can mitigate risks and ensure long-term success in an increasingly digital world.
More on Small Business Trends for 2025
These 2025 small business trends showcase the remarkable interconnectedness of our global society and the economic impacts they have on small businesses. To continue learning more about what’s in store for 2025, the following articles represent a sample of additional trends worth watching:
- U.S. SBA – 5 Small Business Trends for 2025
- Business News Daily – Small Business Trends and Predictions for 2025
- Score – Top Trends for Business Owners in 2025
- Deloitte – 2025 Marketing Trends
- Forbes – 5 Profitable Business Ideas in Demand For 2025
Additional Small Business Resources
Already in business or thinking about starting your own small business? Check out our various small business resources:
- View small business help topics here: Small Business Information Center
- View business reports here: Small Business Snapshots
- View industry-specific research here: Market Research Links
- View our small business cybersecurity resources here: Cybersecurity
Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!
About the SBDC National Blog
The SBDC National Information Clearinghouse (SBDCNet) is the official business research and support program for the national SBDC network. For over 25 years, the SBDCNet has been dedicated to meeting the information and resource needs of the small business community and working in partnership with SBDCs to ensure their clients’ success. The SBDC National Blog is a publication of SBDCNet that features small business news, stories and more. If you have a small business resource or SBDC client success story you think would make a great feature, please Contact Us.
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