Data & Research May 19, 2025

Small Business Owners Show Resilience on Main Street

U.S. small business owners report they are staying the course to endure inflation and labor pressures.

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About half of U.S. small businesses are shifting their strategies in response to ongoing economic pressures, according to a recent Chase survey. With inflation, labor shortages and tariffs creating persistent challenges, small business confidence remains well below its post-election peak. Still, rather than pulling back, many owners are adjusting and finding new ways to stay competitive, especially in key regions across the country.

These businesses are actively responding to the changing economic environment, the survey found. They reported being more likely than the national average to support local suppliers, with a 1.4x higher rate of buying locally. They also reported focusing on keeping their teams strong, investing in employee retention at 1.3x the national rate. On the tech front, they reported embracing change, being 1.4x more likely to adopt artificial intelligence tools as part of their operations.

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“Market conditions and overall optimism will always fluctuate, but what matters is how businesses respond and adapt to the moment,” said Ben Walter, the CEO of Chase for Business, in a statement accompanying a summary of the survey. “Small business owners are some of the most resilient and forward-thinking leaders out there—constantly adopting new tools and navigating challenging times with grit and innovation.”

According to the survey, March saw significant resilience among metropolitan small businesses: in metro statistical sample areas, small business performance exceeded expectations for 71% of businesses in March, as compared with 56% nationally. Small businesses in Chicago and Tampa, for example, were more likely than the national average to say it is important to continue to invest in the business during challenging marketing conditions. In Houston, small businesses were 1.6% more likely than the national average to have hiring plans.

Chase surveyed approximately 500 small business owners across the nation, plus about an additional 300 in six specific metropolitan areas in mid-March 2025.

Still Smiling Through the Stress

At the same time, new research commissioned by VistaPrint underscored the enduring spirit, adaptability and passion that define America’s small business community. The research examined the current state of happiness among small business owners in the United States.

The findings revealed that 42% of small business owners consider themselves very happy, while 39% reported being somewhat happy, reflecting a strong sense of optimism and resilience despite ongoing economic uncertainty. Only 10% said they feel somewhat or very unhappy.

More than half said they are happier now than when they first started their business, and 53% reported being much happier running their own business than working for someone else. According to VistaPrint, the survey showed that internal, day-to-day factors such as personal growth and independence have a greater impact on happiness than external influences.

The study was conducted for VistaPrint by YouGov between April 17 and April 21, 2025, and included responses from 450 small business owners in the U.S. aged 21 to 64, running businesses employing between 1 and 100 people.

Simpler Banking, Stronger Business

SmartBiz Bank N.A. recently shared results from its State of Small Business: Industry Pulse survey, looking at how owners are approaching financing, what they are looking for in a bank and the challenges they are navigating in today’s economy.

One key takeaway was that trust in traditional banks remains strong: About 40% of respondents have stayed with the same primary bank for more than seven years.

Small business owners were clear about what they want. According to the survey, the banking features that small business owner respondents prioritize most included easy online and mobile banking (67%); low or no fees for ACH, wires or transfers (63%); access to business credit or lines of credit (51%); and simple fund transfers.

Almost 70% of small businesses surveyed were looking for Small Business Administration loans, followed by a business line of credit or business credit card. The challenges most cited in obtaining funds were high interest rates (47%); not being approved or getting less capital than needed (47%); and complex application processes (23%).

According to SmartBiz Bank CEO Evan Singer, the goal of the survey was to better understand the pressures small businesses fare and how banks can meet their needs more effectively. The insights were gathered from more than 200 SmartBiz Bank customers across industries.

Data & Research May 19, 2025

Study Finds Mismatch Among Employers and Workers Regarding Benefits

Both employers and employees agree that financial stress is the primary employee concern—but a Prudential Survey finds employers underestimate how much employees struggle living paycheck to paycheck.

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A growing divide separates what employees say they need from their workplace benefits and what employers provide, with everyday financial stress emerging as a top concern for U.S. workers, according to a recent Prudential Financial study. 

The 2025 Benefits and Beyond study, shows that while 75% of employers surveyed believe their benefit offerings support retirement savings, only 35% say those same benefits help alleviate immediate financial pressures such as the cost of groceries, housing and generally making ends meet. 

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Among employees surveyed, 45% said saving for retirement was their top challenge. Other top concerns were the cost of everyday goods at 44%; housing at 29% and making it to their next paycheck at 26%.  

“Employees want benefits that go beyond traditional coverage and more completely address how they live and work,” said Michael Estep, president of Prudential Group Insurance, in a statement. “The workplace is at a tipping point, and there’s so much at stake for employers.” 

The study also reported a perception gap between employers and employees. While 86% of employers believe they are offering modern benefits, just 59% of employees agree. And although 97% of employers claim employee well-being is a priority, only 69% of employees said they felt that way. 

Employees are also increasingly interested in benefits that improve their work/life balance. For example, 41% of employees said they favored four-day work weeks and 23% supported time off for new pet owners, similar to paternity leave. 

However, among employers, some 35% considered a four-day work week optimal and 17% supported time off for new pet owners.  

The study, conducted via national online surveys, included responses from 2,946 full-time employees and 750 employers. 

Prudential Financial Inc. manages approximately $1.5 trillion in assets as of December 31, 2024. Prudential Group Insurance distributes a range of insurance for use within employee and membership benefits plans. 

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