America’s small business owners are optimistic about the coming year, and are looking to the federal government to help them better compete, grow, and create jobs, according to a new survey by Goldman Sachs 10,000 Small Businesses Voices, which includes a Detroit center.
Small businesses across the U.S. say they are planning to grow their businesses this year, but they could see added sales if Congress and the new administration can prioritize tax reform, address inflation, enhance workforce development, cut regulatory red tape, and increase access to capital.
“Small business owners are optimistic, but that doesn’t mean we aren’t facing real challenges,” says Jessica Johnson-Cope, president of the Bronx-based Johnson Security Bureau Inc., a third-generation family-run firm.
“This is an opportunity for Washington to rethink how it supports small businesses and helps us create economic opportunity. Let’s make sure programs reflect the realities of running a business today in our modern, ever-evolving economy.”
The survey results include:
- Nearly seven in 10 (69 percent) small business owners feel positive about their financial outlook for 2025.
- More than three-quarters (78 percent) plan to grow this year, and 46 percent expect to create new jobs in 2025.
- Of those businesses currently hiring, 89 percent say it is difficult to find qualified workers, with 62 percent saying their difficulty in recruiting stems from their inability to compete with larger companies on pay and benefits.
- More than half (53 percent) can’t afford to take out a loan given current interest rates, leading to a striking 88 percent saying lower interest rates would help their business.
- Inflation remains a top concern, as 54 percent of respondents identify addressing inflation as their highest policy priority for the new administration, making it the top small business priority.
In addition, more than half (60 percent) of survey respondents want Congress to simplify the tax code, citing confusing provisions, hard-to-use credits, and rules that don’t fit smaller operations.
Overall, 73 percent of respondents said the federal tax code is unfavorable for small businesses. Specifically, small business owners report the following challenges with the tax code:
- Tax credits and incentives not scaled for businesses of their size (63 percent)
- Overly complex and confusing tax code (55 percent)
- Difficulty maximizing expenses (33 percent)
“We’re not asking for special treatment, we’re asking for a tax system that doesn’t trip us up,” says Johnson-Cope.
As small businesses continue to navigate growth challenges, many also point to burdensome regulations and outdated federal programs as obstacles. Fifty-seven percent said their business is being held back by regulatory red tape and compliance, and 95 percent believe federal programs need to better reflect the realities that small businesses face.
With new leadership at the U.S. Small Business Administration (SBA), business owners say now is prime time for reform.
Nearly nine in 10 (89 percent) want the agency to modernize — specifically calling for greater access to capital (50percent), reduced regulatory burden and red tape (47 percent), support for more workforce development and training (34percent), modernized communication systems and technology (34 percent), and increased small business procurement goals and accountability (32 percent).
Small businesses say they recognize innovation is a key component to staying competitive, with 80 percent of small business owners who use AI citing increased efficiency and productivity.
However, 44 percent said they lack the resources and expertise necessary to successfully deploy it, and 76 percent support government policies to help small businesses adopt new technology such as AI.
“Small business owners aren’t just watching, they want a seat at the table as Washington tackles big issues in 2025,” says Jill McCarthy, national director of Goldman Sachs 10,000 Small Businesses Voices. “Their message is simple: Listen to us. Work with us. Let’s get this right.”
The survey of 1,188 Goldman Sachs 10,000 Small Businesses participants was conducted by Babson College and David Binder Research from Feb. 10-17, 2025. The survey included small business owners from 49 U.S. states, 2 U.S. territories, and the District of Columbia.
Goldman Sachs 10,000 Small Businesses Voices, which builds on Goldman Sachs 10,000 Small Businesses, organizes program participants to advocate for policies that matter to them. For more information, visit gs.com/10ksb-voices.
To access the survey results, visit here.
For more information about 10,000 Small Businesses in Detroit, visit 10ksbdetroit.com/.
