Small Businesses Face Challenges Head-On, Ready to Adapt and Grow

The latest MetLife & U.S. Chamber of Commerce Small Business Index (SBI) for Q1 2025 reflects a moment of challenge—but also of resilience. The index dipped to 62.3 from 69.1, aligning with levels seen a year ago as small business owners navigate inflation and shifting economic conditions. Yet, despite these hurdles, entrepreneurs remain focused on growth, adaptability, and long-term success.

A record 58% of small business owners now cite inflation as their top concern, as rising costs impact everything from payroll to product pricing. Meanwhile, 35% of business owners are increasingly focused on revenue, a 10% increase from last quarter.

Two in three small businesses (66%) say they’re still comfortable with their cash flow, and while that’s slightly lower than last quarter, it speaks to the resilience of business owners who are actively managing their finances and finding ways to thrive.

And there’s more good news—hiring is on the rise. Despite economic fluctuations, 37% of businesses plan to expand their workforce in the next year, with the manufacturing sector leading the charge (56%). This isn’t just about adding jobs; it’s about building stronger, smarter teams for the future.

WY it Matters: There’s no denying the obstacles ahead—small businesses are facing economic shifts, tariff discussions, and shifting consumer behaviors. But this isn’t a setback; it’s an opportunity.

Entrepreneurs have always been the backbone of the economy, and their ability to adapt, innovate, and push forward will once again define their success. While short-term confidence has dipped, the long-term drive remains unwavering.

For more insights from the Q1 2025 SBI report, visit the U.S. Chamber of Commerce website.