What You Need to Know About Small Business in 2025: Insights from the Big Small Business Survey

The landscape for small businesses is evolving rapidly, and if you want to stay profitable and competitive in 2025, understanding the latest trends is essential.

From rising costs and AI adoption to marketing challenges and business innovation, the latest Big Small Business Survey—co-authored by Jenn Donovan, Andrew Griffiths, Tracy Sheen, and Katrina McCarter—reveals key insights that can help business owners navigate the coming year with confidence.

Here’s what you need to know about small business in 2025, and what you can do to future-proof your business against economic shifts, technological advancements, and shifting consumer expectations.

The Biggest Challenge for Small Businesses in 2025: Rising Costs

It’s no surprise that rising costs are the number one concern keeping small business owners awake at night. According to the survey:

• 45% of respondents reported that increasing costs—such as rent, wages, insurance, and utilities—are their biggest challenge.
• Business expenses are rising faster than revenue, squeezing profit margins.
• Only 15% of business owners have a clear pricing strategy to counteract these costs.

What you can do:
💡 If pricing is a challenge in your business, consider listening to Episode 287 of the Small Business Made Simple Podcast featuring Andrew Griffiths and check out his book, “Someone Has to Be the Most Expensive—Why Not Make It You?” It’s packed with strategies to price for profit and value your expertise.

AI in Small Business: A Game-Changer or a Concern?

Artificial Intelligence (AI) is rapidly transforming how businesses operate. The survey found that:

• 63% of small business owners say AI is positively impacting their business.
• 15% use AI daily to improve productivity, marketing, and customer service.
• 20% remain hesitant or unsure about integrating AI into their business operations.

AI can streamline content creation, customer interactions, and even financial forecasting—saving time and money. However, many business owners still feel overwhelmed by the technology.

How to embrace AI for business growth:
📌 Listen to Episode 227 and Episode 263 of the podcast for expert insights on AI adoption for small business owners.
📌 Follow Tracy Sheen for updates on her upcoming book AI Reimagined—a guide for business owners looking to leverage AI effectively.
📌 Check out the AI Explored Podcast for in-depth discussions on AI trends, tools, and implementation strategies.

Marketing in 2025: The Struggle for Consistency & Visibility

Many small business owners still struggle with marketing, but the good news is that marketing overwhelm is on the decline compared to previous years. The key challenges remain:

• Keeping up with changing trends.
• Content creation consistency.
• Knowing how to measure marketing success.

The secret to success in 2025? Consistent, high-value content that connects with your audience.

How to improve your marketing strategy:
✅ Plan ahead: Batch-create content and schedule posts in advance.
✅ Test and measure: Track what works and adjust your strategy accordingly.
✅ Focus on engagement: Social media is more about conversations than broadcasting.
✅ Use AI-powered tools: AI can help with everything from social media captions to email marketing.

🎧 Need help refining your marketing? Subscribe to the Small Business Made Simple Podcast and listen to Episode 333 for real-world strategies.

Innovation & Community: How Small Businesses Are Thriving Despite Challenges

Despite economic uncertainty, the survey found that many small businesses are thriving by embracing innovation and collaboration:

• 38% of small business owners are diversifying their products and services to adapt to market demands.
• Almost 50% reported increased sales as their biggest opportunity.
• Community-building and partnerships are helping businesses weather economic shifts.

What you can do:
📌 Look for collaboration opportunities—partner with other small businesses to expand your reach.
📌 Get involved in business communities like networking groups and industry forums.
📌 Stay flexible and open to change—the most successful businesses adapt quickly.

The Hidden Challenge: High Taxes & Government Red Tape

One of the most overlooked issues affecting small businesses in 2025 is the burden of high taxes and regulatory red tape.

Many business owners feel stifled by government policies, with unnecessary paperwork and compliance requirements slowing down innovation.

How to advocate for change:

• Engage with your local business group to voice your concerns.
• Attend local business forums and election events.
• Use social media to engage with policymakers—many are highly responsive to public feedback.
• Write to your MP—a well-crafted letter can put issues on their radar.

Your Small Business Success Checklist for 2025

✔️ Review your pricing strategy—ensure you’re charging for value, not just cost.
✔️ Explore AI tools that can streamline operations and improve productivity.
✔️ Develop a consistent marketing plan and test what works best for your audience.
✔️ Diversify your revenue streams—consider new products, services, or collaborations.
✔️ Engage with local business groups and advocate for policy changes that support small businesses.

🚀 Want to dive deeper? Listen to the full episode of the Small Business Made Simple Podcast here for actionable insights and expert strategies.

About the Author: Jenn Donovan

Jenn Donovan is a marketing strategist, business coach, and sought-after keynote speaker with a passion for helping small businesses simplify their marketing and grow their profits. She is the founder of Social Media & Marketing Australia, the host of the Small Business Made Simple Podcast, and the co-author of the Big Small Business Survey.

🎧 Listen to Jenn’s latest podcast episode here: www.socialmediaandmarketing.com.au/333 🚀