Small and mid-sized business owners in the United States are showing optimism for the coming year, with 74% expecting revenue growth and nearly 60% planning to expand their businesses. These findings come from the 2025 Bank of America Business Owner Report, conducted with the Bank of America Institute.
The report also indicates that around half of those surveyed expect improvements in local (53%), national (48%), and global (45%) economies over the next year. Respondents said their confidence would be further boosted by stabilization of tariff policy, cooling inflation, lower interest rates, and stronger supply chains.
“Business owners are approaching the coming year with confidence and a clear focus on growth,” said Sharon Miller, President of Business Banking at Bank of America. “Many plan to retain their current staff and hire more, and anticipate that local, national and global economies will improve.”
Labor shortages continue to affect businesses, with 61% reporting current impacts. Of those affected, half are working additional hours themselves while 40% have raised wages to attract talent. Only 1% plan layoffs in the next year; instead, 43% expect to hire more employees.
The adoption of artificial intelligence is also increasing among business owners—77% have integrated AI into their operations over the past five years. Uses include marketing (50%), content production (38%), customer service (37%), and inventory management (28%). The Bank of America Institute notes an almost 8% increase in small business payments to tech services like AI compared to last year.
Supply chain issues persist for 75% of respondents. More than half have raised prices due to these challenges, while about a third face difficulties sourcing products or services.
Inflation remains a significant concern for most business owners (88%). Many have responded by raising prices (64%) or reassessing cash flow and spending plans (39%).
Looking ahead over the next five years, many business owners aim to expand customer bases, introduce new products or services, and explore new marketing tactics. Nearly all plan to adopt additional digital tools—including AI—to modernize operations, improve efficiency, accept more digital payments, enhance workflows, implement digital-first marketing strategies, and strengthen cybersecurity.
Succession planning remains divided: while 60% have a succession plan in place for their businesses over the next five years, 40% do not. Among those prepared for succession, one-third intend to pass their business on to family members; others plan to sell.
The survey was conducted online by Ipsos between September 11 and September 23, 2025. It included responses from both small business owners—those with annual revenues between $100,000 and $4.99 million—and medium-sized business owners with revenues up to $49.99 million.
Bank of America continues to provide banking services through approximately 3,600 retail financial centers across the United States as well as award-winning digital banking platforms used by nearly 59 million verified users.
For further information about this report or Bank of America's offerings for small businesses or media inquiries can contact Susan Atran at susan.atran@bofa.com or by phone at 1.646.743.0791.