Small Businesses Share a Cautiously Optimistic Outlook for 2025—And AI Is Leading the Charge

Read the SMB Survey Results Fact Sheet

At Corpay, we know that small businesses are the backbone of the U.S. economy. To better understand the challenges and opportunities they see on the horizon, we surveyed 326 small and medium sized businesses with annual revenue ranging from $1 million to $50 million across a variety of industries to gauge their expectations for 2025. The results reveal a cautious optimism tempered by staffing concerns, a strong appetite for emerging technology—especially AI—and a continued focus on talent retention and digitization.

Growth Expectations Remain Strong Despite Headwinds

When asked about their outlook for business growth in 2025, 85% of respondents expressed confidence in the year ahead, with 50% describing their outlook as moderately positive and 35% as strongly positive. Only 5% reported negative expectations. This optimism is largely driven by the promise of new and evolving technologies (34%), though economic uncertainties such as inflation, consumer confidence, and supply chain disruptions were cited by 27% as factors tempering their expectations.

Staffing Shortages Return as a Top Concern

Despite positive growth expectations, 58% of small business leaders anticipate staffing shortages in 2025. That is up from 38% last year and 44% in 2023. As they look ahead, many are preparing to double down on recruitment and retention efforts. The top three strategies cited include:

• Enhancing recognition through increased wages, bonuses, and benefits (53%)

• Offering a flexible work schedule including remote and hybrid options (44%)

• Investing in more aggressive recruitment strategies, whether online or through third parties (43%)

These findings suggest a continued shift in workplace culture and benefits—one that prioritizes employee experience and adaptability.

Payments Digitization: Barriers Persist

Small businesses believe digitization can help offset economic challenges in 2025, with 46% identifying expense cutting and spending controls at the top of their list followed by 40% calling for more automation. Despite many businesses seeing the value of moving away from paper-based processes for paying expenses, barriers remain. The top concerns include:

• Security (42%)

• Ease of adoption and integration (37%)

• Cost (32%)

These pain points underscore the need for payment solutions that are not only secure and reliable, but also easy to implement—without significant upfront investment.

AI Moves from Buzzword to Business Strategy

One of the most compelling findings from the survey is the growing embrace of Artificial Intelligence. An overwhelming 89% of respondents plan to deploy or test AI tools in 2025, which more than doubles the 34% revealed by the survey last year. Top use cases include:

• IT and technology functions (67%)

• Operations (52%)

• Sales and marketing (50%)

AI adoption is no longer a question of if but where and how. Small businesses are looking to AI not just to boost efficiency, but to stay competitive and agile in a rapidly changing environment.

Eyes on Growth, With a Watchful Eye on Risk

While optimism prevails, small business leaders are acutely aware of the risks ahead. The biggest fear for 2025? Declining sales or losing market share (54%), followed by concerns around employee well-being and quality of life (21%). These insights reinforce the balancing act many businesses face: driving innovation while remaining people-centric.

At Corpay, we remain committed to helping small businesses navigate this evolving landscape—with smarter payments, actionable insights, and the tools they need to thrive. Whether you're just beginning your digitization journey or looking to integrate AI into your operations, Corpay is here to help you move forward with confidence.