A recent survey of 50,000 small business owners nationwide reveals a remarkable transformation in economic outlook, suggesting a potential turnaround in the small business sector. The Freedom Economy Index (FEI) Survey demonstrates a significant leap in confidence, with 80% of respondents reporting an improved economic perspective since November.
The most striking finding is the dramatic reversal in economic expectations. Just four months ago, nearly 60% of small business owners anticipated a recession. Now, 68% are optimistic about economic growth in 2025, representing a substantial shift in sentiment. This change indicates a renewed sense of hope and potential among small business owners across the United States.
Hiring trends reflect this newfound optimism. The survey shows that 32% of small businesses are planning to expand their teams, a substantial increase from the mere 9.5% in October. Layoffs have also dramatically decreased, with only 2.6% of businesses considering workforce reductions, compared to 10% in the previous fall.
Inflation, while still a concern, appears to be loosening its grip on small businesses. Approximately 60% of respondents currently feel the impact of inflation, a significant improvement from the 88% who were struggling with rising costs in October. This reduction suggests potential stabilization in economic conditions.
Another noteworthy trend is the growing adoption of artificial intelligence. The number of businesses exploring or implementing AI technologies has doubled, indicating a potential technological transformation in the small business landscape.
Industry leaders interpret these results as a sign of resilience and potential economic recovery. Michael Seifert, CEO of PublicSquare, emphasized that these sentiments represent the perspectives of businesses on main streets across America, not just corporate boardrooms. Andrew Crapuchettes, CEO of RedBalloon.work, noted that small businesses are not just surviving but preparing to thrive.
The survey's implications are significant. The renewed confidence among small businesses could signal broader economic recovery, increased job creation, and potential investment growth. As these businesses ramp up hiring and expansion plans, they may contribute to economic momentum and potentially stimulate local and national economic growth.
