Small Businesses are Positive About Future Business Operations in 2025

December 23, 2024

Delaney Sexton
Contributing Editor

Small Businesses Are Positive About Future Business Operations in 2025

“The growing optimism among small business owners since the beginning of the year is a positive sign as we move into 2025 and potentially points to increasing opportunities in the new year,” says Bradd Chignoli, executive vice president and head of Regional Business & Workforce Engagement at MetLife.

The U.S. Chamber of Commerce and MetLife released their Small Business Index for the fourth quarter of 2024. Although the index score was slightly down from last quarter, the reading is still an increase from the same time last year.

Two-thirds of small businesses say their business is in good health for the fourth quarter of 2024. Small businesses with more employees are more likely to report that their business is in good health, have comfortable cash flow, and that their staff is growing.

About a third of small business owners are positive about the nation’s economic health, a 7-point increase from the same time last year. An 8-point improvement from last year, 38% of small business owners are positive about the health of their local economy. Those that are in the retail industry more frequently report that the national economy is in good health while those in manufacturing or services are less likely to say the same.

Looking forward, small businesses are optimistic about the future. Almost three-quarters of small businesses expect their revenue to increase next year, and 46% plan to increase investment in the upcoming year. Just over 40% of business owners are expecting to increase their staff in 2025.

Source:
Small Business Index Q4 2024