Overall small business confidence is at its second-lowest level since tracking began, pointing to a challenging landscape for Main Street businesses entering a pivotal time of year—holiday season—according to the Fall 2025 Small Business Survey from Main Street America, a group dedicated to reenergizing and strengthening older and historic downtown commercial districts.
“Small businesses with fewer than 25 employees make up 98% of all American businesses,” Erin Barnes, president and CEO of Main Street America, said in a statement. “This survey shows that many of these businesses, particularly the smallest, are confronting real challenges.”
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Key findings of the survey report include:
- Main Street business confidence remains near its all-time low, especially among the smallest businesses: Main Street business owner confidence ticked up three-tenths of a point since Main Street America’s spring 2025 survey, but the data reflects the second-lowest average rating over the course of seven biannual surveys. Businesses with fewer than three full-time employees reported an average confidence rating of 6.8 out of 10.
- Faced with revenue and profit challenges, Main Street businesses are approaching the holidays with anxieties about sales: Over the past three months, 38% of businesses reported a decline in revenue, and 45% saw a drop in net profit.
- Broad social and economic trends are rattling Main Street business operations: Many respondents indicated that overlapping concerns, including the federal government shutdown, tariffs, inflation, and shifting consumer spending patterns, have weighed heavily on confidence levels and operational decisions.
“With tariffs, all of my international customers have completely dropped off,” said Courtney Schur, owner of Carmine and Hayworth Vintage, a small clothing store in Fargo, ND. “We’re going into the holidays with the least amount of inventory we’ve had, but trying to be as conservative as we can, working with really thinned out margins right now.”
The survey of 1,295 small business owners highlights the vulnerability of the vital Main Street businesses that are often overlooked and underrepresented in traditional small business reporting: 72% of respondents employ fewer than three full-time staff, and more than half operate with annual revenues under $200,000. Main Street businesses also play a substantial part in local economies: 70% contribute to local causes, 63% hire locally, and 56% use local vendors.
“During the holiday season, when many small businesses earn up to 40% of their annual revenue, we can all make a difference by shopping small and shopping locally,” Barnes said.
Photo credit: Dimensions/iStock
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