Small and medium-sized business owners in the United States are expressing cautious optimism for the coming year, with 74% expecting increased revenues and nearly 60% planning to expand their businesses. These findings come from Bank of America’s 2025 Business Owner Report, produced in collaboration with the Bank of America Institute.
The report also shows that about half of surveyed business owners believe local (53%), national (48%), and global (45%) economies will improve over the next year. Respondents indicated that their confidence could be further strengthened by stable tariff policies (53%), reduced inflation (52%), lower interest rates (52%), and stronger supply chains (39%).
“Business owners face the coming year with confidence and a clear focus on growth,” said Sharon Miller, President of Commercial Banking at Bank of America. “Many plan to retain their current staff and hire more, and they forecast improvements in local, national, and global economies.”
Key findings from the report highlight several trends:
– Labor Market: Sixty-one percent of business owners reported being affected by labor shortages. Among those impacted, half are working longer hours due to understaffing, while 40% have raised wages to attract talent. Only 1% expect to lay off employees in the next year; instead, 43% plan to hire additional staff.
– Artificial Intelligence: AI has become important for these businesses, with 77% integrating it into operations over the past five years. Technology is used for marketing (50%), content production (38%), customer service (37%), and inventory management (28%). The Bank of America Institute noted that small business payments for technology services, including AI, rose by almost 8% year-over-year in October.
– Supply Chain: Seventy-five percent said they are affected by supply chain issues. Of those impacted, 52% are raising prices on goods and services while 38% face difficulties sourcing them.
– Inflation: Most business owners (88%) reported feeling the effects of inflation. In response, 64% are increasing prices on goods or services, and 39% are reassessing cash flow and expenses for the coming year.
Looking ahead over the next five years, many entrepreneurs remain moderately optimistic about growth and innovation. Their priorities include expanding their customer base (47%), broadening product or service offerings (39%), and exploring new marketing strategies (35%). Nearly all respondents (91%) expect to implement more digital tools and artificial intelligence during this period to modernize operations, support growth, and improve employee efficiency.
Plans include accepting more forms of digital payment (52%), improving employee workflows for daily tasks (47%), deploying more digital marketing strategies (45%), and enhancing cybersecurity measures (30%).
Succession planning remains mixed among respondents; while most do not focus on an exit strategy within five years, 60% have a succession plan in place but 40% do not. Among those with a plan, one-third intend to transfer ownership to a family member while another 38% plan to sell their business.
The survey was conducted online by Ipsos between September 11–23, 2025. It included responses from a national sample of small business owners—defined as those with annual revenues between $100,000–$4.99 million—and medium-sized business owners—with annual revenues between $5 million–$49.99 million—across the United States.
Bank of America serves approximately four million small business owners through various products and services designed for ease of use online. The company operates across all U.S. states as well as internationally in more than thirty-five countries.
“Business owners face the coming year with confidence and a clear focus on growth,” said Sharon Miller, President of Commercial Banking at Bank of America.“Many plan to retain their current staff and hire more, and they forecast improvements in local, national, and global economies”.
