The latest Main Street Business Survey reveals that small business owners remain primarily concerned about rising costs and declining consumer demand, with only 50% having begun exploring artificial intelligence integration in their operations. The August 2025 installment of the Freedom Economy Index survey indicates that 25% of respondents identified rising costs as their top concern, while 22% cited declining consumer demand as their primary issue.
Michael Seifert, CEO of PublicSquare, noted that the economy shows signs of emerging from a difficult period, with business owners having weathered inflation, supply chain disruptions, and mandates without seeking bailouts. The survey introduced the new State of Main Street Index, which debuted at 57 on a 100-point scale, indicating positive momentum as scores above 50 signal economic improvement.
Regarding artificial intelligence adoption, 45% of business owners reported not using AI in their businesses. Among those implementing AI technology, 32% found it most beneficial for marketing and advertising, while 9.2% reported improvements in business operations and 7.9% in customer engagement. Notably, 26.6% of AI adopters indicated that the technology has reduced their staffing needs, suggesting potential labor market impacts as adoption increases.
The survey also examined business owners' perspectives on political matters, showing that 91% agree with balancing the federal budget, though only 34% support opposition to raising the debt ceiling. By a three-to-one margin, business owners expressed that new third-party political plans would be bad for America's economic future. The Department of Government Efficiency received positive ratings, with 38.3% describing its performance as excellent and 37.6% as good.
Andrew Crapuchettes, CEO of RedBalloon.work, observed that business owners are making cautious investments in growth, representing a significant shift from the previous year. However, persistent high costs and policy uncertainty continue to slow investment decisions. Krystal Parker, President of the U.S. Christian Chamber of Commerce, added that while businesses remain resilient and the free market stands ready to reward risk-takers, continued high prices may force consumers to tighten spending, ultimately slowing economic progress for all.
The Freedom Economy Index survey, now in its fourth year, represents a collaborative project between PublicSquare, RedBalloon.work, and the U.S. Christian Chamber of Commerce. The survey provides critical insights into small business sentiment and economic health indicators that influence national economic policy decisions and market expectations. View the full results of the August Freedom Economy Survey here.
