NEW YORK — Small business owners across the United States are looking ahead to 2025 with optimism, despite grappling with significant obstacles such as inflation, tax complexity, and difficulties accessing capital. A recent survey conducted by Goldman Sachs 10,000 Small Businesses Voices reflects both their aspirations for growth and their calls for government action to level the playing field.
The survey of 1,188 small business owners from 49 states, two U.S. territories, and the District of Columbia reveals that nearly seven in 10 (69%) feel positive about their financial outlook for the year. Additionally, 78% plan to grow their businesses, while 46% expect to create new jobs in 2025.
“Small business owners are optimistic, but that doesn’t mean we aren’t facing real challenges,” said Jessica Johnson-Cope, president of Johnson Security Bureau, Inc. in the Bronx. “This is an opportunity for Washington to rethink how it supports small businesses and helps us create economic opportunity.”
Key Challenges
However, despite this optimism, hiring and financial hurdles remain significant barriers to growth. Among those currently hiring, 89% reported difficulties finding qualified workers, with 62% attributing the challenge to an inability to match larger companies in pay and benefits.
High interest rates have also made accessing capital prohibitive, with 53% of small business owners saying they can’t afford to take loans. An overwhelming 88% believe lower interest rates would benefit their operations.
Inflation continues to weigh on small businesses, with 54% identifying it as their top policy priority for the government. Nevertheless, concerns over tax complexity are equally pressing, with 60% of respondents calling for a simplified tax code. An alarming 73% feel the tax system is unfavorable for small businesses, citing overly complex provisions and ill-suited tax incentives.
“We’re not asking for special treatment—we’re asking for a tax system that doesn’t trip us up,” Johnson-Cope emphasized.
Calls for Modernization and Innovation
The survey also highlights the need for reform in federal programs and the Small Business Administration (SBA). A striking 95% of those surveyed believe federal programs should better reflect modern small business realities. Business owners specifically cited the need for improved access to capital (50%) and reduced regulatory burdens (47%).
Innovation remains a key avenue for growth, with 80% of small business owners who have adopted AI reporting improvements in efficiency and productivity. Yet over 44% said they lack the resources and expertise to deploy this technology effectively, underscoring the need for government policies to support technological adoption.
“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.
Summary and Outlook
While America’s small business owners approach 2025 with optimism and ambition, the survey underscores the urgency of addressing economic headwinds like inflation, complex tax systems, and barriers to capital access. Collaborative efforts between policymakers and entrepreneurs could unlock significant growth and job creation. By prioritizing these reforms, Washington has the opportunity to empower small businesses to thrive in an increasingly competitive landscape.
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