U.S. small businesses are planning for 2025 to be a year of growth and optimism—and they’re urging Congress and the Trump administration to prioritize tax reform, address inflation, enhance workforce development, cut regulatory red tape, and increase access to capital, according to a new survey from Goldman Sachs.
Here are some key results from the 10,000 Small Businesses Voices survey:
- Optimism is high: Nearly seven in 10 (69%) small business owners feel positive about their financial outlook for 2025.
- Growth plans remain strong: More than three-quarters (78%) plan to grow this year, and 46% expect to create new jobs in 2025.
- Hiring, however, remains difficult: Of those currently hiring, 89% say they’re finding it difficult to find qualified workers, with 62% saying their difficulty in recruiting stems from their inability to compete with larger companies on pay and benefits.
- Access to affordable capital is out of reach: More than half (53%) can’t afford to take out a loan given current interest rates, with an overwhelming 88% saying lower interest rates would help their business.
- Inflation remains a top concern: 54% identify addressing inflation as their highest policy priority for the new administration, making it the top small business priority.
“Small business owners are optimistic, but that doesn’t mean we aren’t facing real challenges,” Jessica Johnson-Cope, president of the Bronx-based Johnson Security Bureau Inc., a third-generation family-run firm, said in a statement. “This is an opportunity for Washington to rethink how it supports small businesses and helps us create economic opportunity. Let’s make sure programs reflect the realities of running a business today in our modern, ever-evolving economy.”
Tax complexity is also top of mind for small business owners. More than half (60%) of the 1,188 survey respondents say they want Congress to simplify the tax code, citing confusing provisions, hard-to-use credits, and rules that just don’t fit smaller operations. A majority (73%) said the federal tax code is unfavorable for small businesses.
Specifically, small business owners report the following challenges with the tax code:
- Tax credits and incentives not scaled for businesses of their size (63%).
- Overly complex and confusing tax code (55%).
- Difficulty maximizing expenses (33%).
“We’re not asking for special treatment—we’re asking for a tax system that doesn’t trip us up,” Johnson-Cope said.
As small businesses continue to navigate growth challenges, many also point to burdensome regulations and outdated federal programs as obstacles. Fifty-seven percent said their business is being held back by regulatory red tape and compliance, and an eye-popping 95% believe federal programs need to better reflect the realities that small businesses face.
With new leadership at the Small Business Administration, business owners say now is the right time for reform. Nearly nine in 10 (89%) want the agency to modernize, specifically calling for greater access to capital (50%), reduced regulatory burden and red tape (47%), support for more workforce development and training (34%), modernized communication systems and technology (34%), and increased small business procurement goals and accountability (32%).
Small businesses owners also recognize that innovation is key to their organization staying competitive, with 80% who use AI citing increased efficiency and productivity, according to the survey. However, 44% said they lack the resources and expertise necessary to successfully deploy it, and 76% support government policies to help small businesses adopt new technology such as AI.
“Small business owners aren’t just watching—they want a seat at the table as Washington tackles big issues in 2025,” said Jill McCarthy, national director of Goldman Sachs 10,000 Small Businesses Voices. “Their message is simple: Listen to us. Work with us. Let’s get this right.”
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