Introduction
American Express has released its latest Amex Trendex: Small Business Edition, which indicates that small businesses are looking forward to a period of stability in 2025. They are also investing in technology to accelerate their development. In 2024, 70% of small businesses reported that their operations improved as a result of a period of uncertainty, and nearly seventy-four percent anticipate that their businesses will experience a period of stability in 2025.
91% of small businesses are confident in their capacity to expand their business during the upcoming year, with nearly 73% expressing that they are more confident than ever. Additionally, 92% are confident in their ability to prepare their company for the future. Additionally, small businesses are optimistic about their future financial success (90%) and their ability to anticipate trends or evolving consumer preferences (89%). When asked what they believe businesses should be doing to position themselves for success in 2025, small businesses believe that they should prioritize the following: setting concrete goals (42%), meeting with customers (41%), conducting customer research (33%), upgrading their IT solutions (29%), refreshing their website and social media (29%), and hiring talent (29%).
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In 2025, the digitally-native Millennial and Gen-Z generations intend to expand their small enterprises by making technological investments. In comparison to Gen-X and Baby Boomer-owned small businesses, younger business owners intend to increase their investments in financial platforms to assist in managing their cash flow (52% Millennials and Gen-Z vs. 39% Gen-X and Baby Boomers) and digitization to attract new customers (51% vs. 45%). Although the expansion of their social media presence is a critical priority for all generations in 2025, Millennial and Gen-Z small businesses are particularly aware of the potential to establish their brands and interact with customers on social media. In fact, 71% of them express a desire to see their business go viral. In comparison to Gen-X and Baby Boomers, a greater number of Millennial and Gen-Z small businesses report that the content they encounter on social media serves as a source of inspiration for their business (74% vs. 56%). Additionally, a greater number of Millennial and Gen-Z small businesses have implemented changes to their operations in response to content they have encountered on social media (67% vs. 48%).
When asked about the priorities of 2025, there is a persistent disparity in generational attitudes. In comparison to Gen-X and Baby Boomers, Millennial and Gen-Z small businesses identified their objectives for 2025 as following: expanding their employee base (32% Millennials and Gen-Z vs. 22% Gen-X and Baby Boomers), introducing a new product or service (26% vs. 21%), and expanding their physical footprint (25% vs. 18%).
Millennial and Gen-Z small enterprises are at the forefront of the adoption of Artificial Intelligence (AI) for their operations. In comparison to Gen-X and Baby Boomer small businesses, a greater number of Millennial and Gen-Z small businesses are currently utilizing AI (68% vs. 45%) and anticipate that their investments in AI will rise in 2025 (46% vs. 36%). Small businesses that have implemented AI believe that the technology is not only a valuable tool for business expansion, but also a competitive advantage. In 2025, 50% of small businesses that employ AI anticipate an increase in the total number of employees, as opposed to 36% of businesses that do not employ AI.
In 2025, small businesses that employ AI are more likely to aspire to upgrade their technology solutions (38% vs 22%), increase their market share (30% vs 20%), and introduce a new product or service (29% vs 16%) than those that do not.
Industry Comments
“In 2024, small businesses demonstrated resilience in the face of uncertainty, reinforcing confidence in their ability to grow through changing times,” said Anna Marrs, Group President, Global Commercial Services at American Express. “For them, 2025 will be defined by innovation, leaning deeper into artificial intelligence and social media as essential tools for reaching customers and future-proofing their businesses.”
FAQs
- What are small businesses expecting for 2025? Small businesses are optimistic about 2025, with 74% expecting a period of stability. They believe that focusing on technology and innovation will help them thrive and adapt to future changes.
- How confident are small businesses about their growth? A large majority, 91%, of small businesses are confident in their ability to expand in the coming year, with 73% feeling more confident than ever before.
- What steps are small businesses taking to succeed in 2025? Small businesses are prioritizing goals like setting concrete objectives, meeting with customers, upgrading their technology, improving their social media presence, and hiring talent to position themselves for success.
- How are Millennial and Gen-Z business owners different from older generations? Millennial and Gen-Z owners are more focused on investing in technology, particularly AI, financial platforms, and social media, to help grow their businesses and connect with customers in 2025. They are also more likely to expand their workforce and introduce new products.
Conclusion
Small businesses have shown resilience through uncertainty in 2024, and they are looking forward to a more stable and innovative 2025. With a strong focus on technology, social media, and AI, businesses—especially those led by Millennials and Gen-Z—are preparing to grow and future-proof their operations. By setting clear goals, adopting new tools, and expanding their customer base, small businesses are positioning themselves to thrive in the years ahead.
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