Texas Border Business
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US Chamber of Commerce
By Thomas M. Sullivan
Vice President, Small Business Policy, U.S. Chamber of Commerce
In the first set of data collected after the election, small business owners are bullish about growth and profitability.
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Our weekly survey and analysis of the latest data from leading organizations highlights improved confidence and strong growth expectations for 2025.
Our survey about small businesses also reveals optimism about the economy coupled with inflation worries, ongoing hiring pressures and an upward trend in capital spending.
Meanwhile, the Q3 MetLife & U.S. Chamber of Commerce Small Business Index is out with insights on the economy. And our Impact of Technology on U.S. Small Business report shows how AI is helping small businesses.
New Small Business Data
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| Summary: |
| Small business confidence improves after the election with skyrocketing anticipation of higher revenues and profitability. |
| 28% of small business owners say the economy has improved (5 points higher than October) and 28% say the economy has gotten worse (3 points better than October). |
| 63% of small business owners believe the economy will improve in the next 12 months (27 points better than October) and 13% believe the economy will worsen (1 point better than October). |
| 64% of small businesses plan on increasing employees next year (12 points higher than October) and 3% plan on shrinking their workforce (4 points lower than October). |
| 45% of small businesses expect to increase fixed investments in the next year (9 points higher than October). |
| 79% of small businesses expect increased revenues in the next 12 months (13 points higher than October) and *69% believe profitability will improve (16 points higher than October). |
| 51% of small business owners rank “tax policies” as the most likely to impact their business within a list of anticipated policy priorities of the new Administration. |
| Summary: Plans for growth continue to move upward. |
| 92% of small business owners expect moderate to significant growth in the next 6 months (up ½ a point since last quarter). |
| 97% of immigrant-owned small businesses are forecasting growth (up 2 points). |
| Almost 97% of veteran-owned small businesses are forecasting growth (up 12 points). |
| 58% of small businesses that are family-owned plan on keeping the business in the family. |
| Summary: |
| October was a tough sales month for small business. Capital spending is trending upward and expectations rose for a post-election sales bump. |
| -20% of small business owners reported higher sales in the past 3-months (3 points lower than September and lowest reading in 4-years) and the percentage expecting higher sales rose 5 points to reach -4% (highest level this year). |
| 35% of small businesses reported job openings they could not fill (up 1 point from September). |
| 31% of small business owners raised compensation in October (down 1 point from September and lowest level in 3-years). |
| 23% of small business owners ranked inflation as their top concern (unchanged from September and still the top cited problem) and 20% said that labor quality is their top concern (3 points higher than September). |
| 21% of small businesses raised their prices in August (1 point lower than September) and 26% are planning on raising prices in the next 3-months (1 point higher than September). |
| 54% of small business owners reported capital outlays in the last 6-months (up 3 points from September) and 22% are planning capital purchases in the next 3-months (up 3 points from September). |
| -6% of small business owners expect better credit conditions in the next 3-months (2 points better than September). |
| 6% of small business owners believe now is a good time to expand (2 points higher than September). |
| 64% of small business owners are not interested in a loan (2 points higher than September) and 25% report borrowing on a regular basis (down 1 point from September). |
| 3% of small business owners reported that financing was their top problem in October (down 1 point from September). |
Information Source: US Chamber of Commerce
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