Small businesses in the United States are continuing to move forward despite ongoing economic challenges, according to new findings from Chase’s 2025 Midyear Small Business Leaders Outlook Pulse survey. The report, released August 12, shows that sectors such as construction, health and medical services, and hospitality are adapting and expanding even as they face concerns about inflation, tariffs, and higher taxes.
The survey indicates that while small business owners recognize significant pressures—including rising costs and tariff uncertainties—they remain proactive in addressing these issues. Many are implementing strategies such as cutting expenses or raising prices to offset inflation. More than half of respondents expect tariffs to negatively impact their operations but are developing plans to counteract those effects.
“Small businesses are navigating a challenging economic landscape with impressive adaptability,” said Liz Wilke, Chief Economist of Business Intelligence at Chase. “While concerns about inflation, tariffs, and higher costs remain, our latest survey shows that many are finding ways to turn those pressures into opportunities—whether by investing in AI or putting more cash to the side. That kind of resilience isn’t just good for their bottom line—it’s critical for the overall health of the economy."
Industry-specific data from the survey reveals varied approaches across sectors. In construction, retail, and manufacturing, recession fears persist alongside worries about inflation and tariffs. However, most businesses plan to continue with their current strategies rather than slow down.
Over half of leaders in health and medical services and hospitality industries plan to expand their operations despite these headwinds. In contrast, 25% of retail leaders report scaling back on current activities—the highest rate among surveyed industries.
To address financial concerns:
- Retail, construction, and hospitality leaders are focusing on reducing non-essential expenses.
- Manufacturing business owners are increasing cash reserves and renegotiating supplier rates.
- Health and medical service providers are prioritizing customer retention strategies.
Artificial intelligence is also becoming more prominent among small businesses. Most owners report seeking new ways to use or expand AI capabilities. More than half of health and medical services leaders have increased their use of AI tools; meanwhile, half of construction sector leaders are either beginning to experiment with AI or considering its adoption. In hospitality and restaurants, 72% say they use AI primarily for analyzing customer data.
The annual Chase survey polled 563 small business owners in June 2025. Since its inception in 2016, the survey has aimed to capture business sentiment regarding industry trends, workplace challenges, staffing needs, government policies, technology adoption—and expectations for the remainder of each year.
Chase is part of JPMorgan Chase & Co., which serves over 85 million consumers and seven million small businesses across nearly 5,000 branches nationwide.
For additional details on the survey results: Read more about the survey findings here.