Small and mid-sized business owners in the United States are expressing cautious optimism for the coming year, with 74% expecting their revenues to rise and nearly 60% planning to expand their businesses. These findings come from the 2025 Bank of America Business Owner Report, conducted in partnership with the Bank of America Institute.
The report highlights that about half of surveyed business owners believe economic conditions will improve at local (53%), national (48%), and global (45%) levels over the next year. Factors that would further boost their confidence include stable tariff policies, reduced inflation, lower interest rates, and stronger supply chains.
“Business owners are approaching the coming year with confidence and a clear focus on growth,” said Sharon Miller, President of Business Banking at Bank of America. “Many plan to retain their current staff and hire more, and anticipate that local, national and global economies will improve.”
Labor shortages remain a significant challenge for small and mid-sized businesses. Sixty-one percent report being affected by these shortages. As a result, half say they are working more hours themselves due to limited staff, while 40% have increased wages to attract talent. Only 1% expect to lay off employees in the next year; instead, 43% intend to hire additional workers.
Adoption of artificial intelligence has become widespread among business owners—77% have integrated AI into operations within the past five years. Uses range from marketing (50%) to content production (38%), customer service (37%), and inventory management (28%). According to data from Bank of America Institute, spending by small businesses on technology services such as AI increased by almost 8% year-over-year as of October.
Supply chain disruptions continue for many businesses: three-quarters report being impacted. Of those affected, over half have raised prices on goods or services while about one-third struggle with sourcing products.
Inflation is also a persistent issue; 88% say it is currently affecting them—similar to last year’s numbers. In response, most are raising prices (64%) or reviewing cash flow strategies for the upcoming period.
Looking ahead over the next five years, business owners remain focused on growth through expanding customer bases (47%), broadening product offerings (39%), and adopting new marketing tactics (35%). Almost all respondents plan greater use of digital tools—including AI—to modernize operations: priorities include accepting more digital payments (52%), improving employee workflows (47%), implementing digital-first marketing strategies (45%), and strengthening cybersecurity measures (30%).
Succession planning shows division among business owners: while 60% have plans in place for transitioning ownership or selling their companies, 40% do not yet have such plans. Of those prepared for succession, about one-third expect to pass control to family members; others plan eventual sale.
The survey was carried out online by Ipsos between September 11–23, 2025. It included responses from a national sample comprising both small business owners—with annual revenue between $100,000–$4.99 million—and medium-sized business owners—with annual revenue between $5 million–$49.99 million—across various U.S regions.
Bank of America Institute serves as a think tank using proprietary data drawn from nearly 70 million consumer and small business clients as well as other sources across its operations in over 35 countries.
