U.S. Small Businesses Stay Resilient Amid Rising Costs and Customer Challenges

Event summary

  • FreshBooks' 2025 State of U.S. Small Business Report surveyed 750 small business owners, revealing steady confidence despite rising costs and customer acquisition challenges.
  • 47% of respondents reported that customer acquisition is harder than in previous years.
  • 43% of small businesses raised prices to offset rising expenses, a percentage largely unchanged from 2024.
  • 76% of respondents reported satisfaction with their current business situation, up from 73% in 2024.

The big picture

The report highlights the pragmatic adaptability of U.S. small business owners in a challenging economic environment. While physical goods businesses face significant tariff impacts, digital and service-based businesses show relative insulation. The data suggests a broader trend of resilience and intentional decision-making among entrepreneurs, despite macroeconomic pressures.

What we're watching

Cost Management
How small businesses will sustain pricing strategies amid persistent inflation and tariffs.
Customer Acquisition
Whether digital and service-based businesses can maintain resilience despite reduced customer demand.
Financial Health
The pace at which younger business owners adapt to rising interest rates and credit reliance.