Small Business Index Report 2024: Small Business Trends, Data, & More

Business management is endlessly evolving. There are always new strategies for attracting more customers, and it’s important to stay on top of small business trends so you can grow your brand.

Our team just released the 2024 Small Business Index, an annual report that surveys business owners and identifies trends to take advantage of next year. It’s packed with valuable data and charts showing the outlook small business owners have for 2025 and what they’re most excited about when it comes to growing their businesses.

Free: The Small Business Index Report

In this report, we’re diving into how small businesses fared over the past year and what they are doing differently in 2025 to ensure success.

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This report will help you attract new customers, improve efficiency, and fine-tune sales strategies to close more deals. Let’s dive in and explore the top small business trends you should look out for next year.

Small Business Growth Trends

Let’s explore these trends in more detail. These three show us how optimistic people are about growing their businesses next year.

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1. Business owners are optimistic about sales performance in 2025.

The Small Business Index Report found that 40% of businesses grew revenue this year. That means there were more sales and purchases made at these companies than the prior year.

Most small business owners expect their profit margins to remain the same in 2025. Profit margin is how much money a business makes for each product or service it sells. While margins are expected to stay the same, more business owners believe their total profits will increase rather than decrease next year.

And, that makes sense – if there’s no change to your profit margin but total revenue continues to increase, then it’s likely that profits should increase as well. In other words, your profits should increase if you’re spending the same amount on each product or service but selling more of it.

2. Job security remains stable for most small businesses.

Small businesses employ millions of people across the U.S. These jobs are vital to the economy, and when businesses hire, they’re likely doing well.

This year, 85% of businesses saw their headcount either remain the same or increase. That aligns with the revenue growth that many businesses experienced as well. Why? Because if you’re selling more stuff, you need more people to sell it. While marketing tools and business technology are great, they can only take you so far, and eventually, you need more people to scale your business. It’s great to see job security remaining stable, as this is a good sign for growth next year.

3. Small business owners are committed to growing their businesses next year.

Although many small business owners are concerned about the economy (more on this later), most are committed to growing their businesses next year. In fact, 43% are investing in their businesses in 2025. They plan to buy equipment or other tools that improve their infrastructure and help them create a better customer experience.

Small Business Economic Trends

Here are some economic trends that small businesses should look out for.

4. Small business owners have concerns about the economy.

Most small business owners felt the economy took a step back in 2024. Our report found that 54% feel like the economy deteriorated this year. The majority have concerns about the impact of the U.S. presidential election, and nearly a third believe inflation will negatively impact small businesses in 2025.

Small business owners also say managing their businesses is getting more difficult. Over a third say it’s harder to manage their business now than over a year ago. That’s why they need new tools and technology to improve their efficiency and help them grow their business.

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5. Despite their economic concerns, small businesses are optimistic about the future.

Although many small business owners have concerns about the economy, most are optimistic about the future. In fact, 45% believe the economy will improve through Q1 of 2025, and only a small percentage expect it to worsen.

Small Business Optimism Index Chart

The small business optimism index chart shows how business owners feel about different areas of their companies. If we compare the 2023 report with this year’s report, business owners are much more optimistic about the economy now than they were a year ago. Last year, their optimism score was -12, while this year, it’s 20. The higher the score, the more optimistic they are.

Technology Trends in Small Business

Here are some small business trends related to technology this year.

6. Small business owners are adopting new tools and technology.

Since running a business is becoming more difficult, there’s a greater need for tools that improve your efficiency. Over 30% of businesses are increasing their software budget next year. They’re considering tools like CRMs, social media managers, and customer review software to grow their businesses. This technology improves your marketing campaigns and helps you attract more customers without adding tasks to your workday.

7. More small business owners are using AI tools.

Small business owners are also investing in AI. Almost a third already use it, but that will increase to around 43% in 2025.

AI tools are much more popular now than a few years ago. Most of us have heard of ChatGPT, but there are dozens of tools available that can help you grow your business.

This blog post breaks down some of the best AI tools for small businesses. But, here are a few you should consider using next year:

• Online Presence Scanner
• AI Scheduling Tool
• Email Marketing Assistant
• AI-Powered CRM

Small Business Marketing Trends

Here are two small business trends highlighting how SMBs plan their marketing campaigns next year.

8. Most small business owners feel like they’re keeping pace with competitors.

Small business owners aren’t just optimistic about the economy, they’re also confident about competing in their industry. Most believe they’re either keeping pace with or dominating their competition. Only a small percentage said they were “under constant attack from competitors.”

The numbers add up here. If you’re optimistic about your profits increasing, then you should feel confident you can compete with other businesses. Business owners who don’t feel like they’re winning need to pivot to the same tools and strategies their competitors are using. These tools can make it easier to run your business, craft effective promotions and campaigns, and stand out in a crowded marketplace.

9. Small business owners plan to spend less on marketing in 2025.

While small business owners plan to invest in their companies next year, most of that won’t be spent on marketing efforts. In fact, business owners are less interested in marketing this year than they were last year. The optimism score for “marketing spend” dropped from 36 to 27 in 2024. That means business owners aren’t very excited about spending a lot on marketing campaigns and are investing that money elsewhere.

Where is that money going? Likely to new technology, equipment, and headcount for these businesses. These resources make them more productive, help their employees collaborate, and create better customer experiences. While these efforts aren’t the same as promotional campaigns, they’re very effective for word-of-mouth marketing and can develop a positive reputation for your business.

New Small Business Trends

Here are a few new trends we learned about small businesses this year.

10. Small business owners want more free time.

When you manage a small business, it’s easy for your work to become your life. Working hours quickly overlap with free time, creating an unhealthy work-life balance for small business owners.

Nearly half of all small business owners say they want to spend more time with friends and family. Many regularly miss get-togethers and family outings, which negatively impacts their personal relationships.

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This dynamic is called “hustle culture,” and it’s an unsustainable lifestyle for small business owners. Personal relationships are important, and having a healthy work-life balance is critical to running a successful business. That’s why it’s worth investing in technology that can help you manage your company. You’ll eliminate repetitive or mundane tasks and free up more time in your schedule.

11. Most people start a business to be self-employed.

In this year’s report, we asked, “Why did you start your small business?” Since running a business is hard work, we wanted to learn why people do it.

Nealy half said they started a business because it was their dream to be self-employed. They wanted to make their own schedules, be their own boss, and run a company however they wanted. This autonomy and freedom is worth the challenges they must overcome to manage a successful business.

12. If given a second chance, most business owners would do it all over again.

We also asked business owners if they would manage their business again if given a second chance. Most said they would turn down alternative jobs with similar pay and benefits to become small business owners.

Why does this matter? Because it shows us how passionate small business owners are. They’re hard workers who constantly overcome challenges and do it with no regrets because they love their work. You need this level of commitment and drive to be a successful small business owner.

Using Thryv’s Small Business Index Report

As a small business owner, it’s important to stay on top of trends in your industry. New technology helps you improve your workflow, and emerging trends keep you on pace with direct competitors. Check out our full report for even more data and use these findings to create a successful business plan for 2025.

Free: The Small Business Index Report

In this report, we’re diving into how small businesses fared over the past year and what they are doing differently in 2025 to ensure success.

Save Now