The optimism among small businesses is palpable as they look ahead to the coming year. According to the recent State of Small Business Report by IOU Financial, over 75% of small business owners surveyed expect to do better in 2025, with 42% anticipating much better performance. This positive outlook is translating into action, as more than three-fourths of respondents plan to invest in their businesses within the next six months.
However, practical concerns remain, with 82% of small business owners expressing concern about high interest rates and the cost of goods. Mid-market companies are also experiencing a surge in confidence, as evidenced by JPMorgan Chase’s 2025 Business Leaders Outlook survey. Among the 1,641 senior executives polled, 71% said they do not foresee a recession on the horizon, a significant shift from the 40% who anticipated a recession in last year’s survey.
Small business investment plans
Ginger Chambless, head of research for JPMorgan Chase Commercial Banking, noted that “businesses are entering 2025 with positive momentum after navigating a period of elevated inflation and interest rates better than expected.”
This newfound confidence is reflected in the survey results, with 75% of middle-market leaders expressing optimism about their own company’s performance. Three-fourths expect higher revenue, and two-thirds anticipate increased profits.
Additionally, 51% plan to add headcount, up from last year. However, the global economy remains a source of uncertainty, with only 29% of respondents expressing optimism. Geopolitical tensions and shifts in global trading patterns are likely contributing factors to this tepid outlook.
Despite these challenges, the overall sentiment among small and mid-market businesses is one of resilience and readiness to invest in growth opportunities. As they navigate the evolving economic landscape, these companies are poised to adapt and thrive in the coming year.