Small businesses are entering 2025 with renewed confidence and a strong appetite for technology investment, particularly among younger entrepreneurs, according to a new American Express survey released today.
The survey found that 70% of small businesses emerged stronger after navigating uncertainty in 2024, with 74% anticipating a period of stability in the coming year. An overwhelming 91% express confidence in their growth prospects, with nearly three-quarters feeling more optimistic than ever before.
The generational divide in technology adoption is becoming more pronounced, according to the Amex Trendex: Small Business Edition. Millennial and Gen-Z business owners are significantly more likely to increase investments in financial platforms (52%) compared to their Gen-X and Baby Boomer counterparts (39%). They’re also more bullish on social media, with 71% aspiring for viral business recognition and 74% drawing inspiration from social platforms for business ideas.
Artificial Intelligence has emerged as a key differentiator for growth prospects. Among businesses currently using AI—68% of Millennial and Gen-Z owners versus 45% of older generations—half expect to increase their workforce in 2025. This contrasts with just 36% of non-AI users projecting staff increases.
“In 2024, small businesses demonstrated resilience in the face of uncertainty,” said Anna Marrs, Group President, Global Commercial Services at American Express. “For them, 2025 will be defined by innovation, leaning deeper into artificial intelligence and social media as essential tools for reaching customers and future-proofing their businesses.”
The survey also revealed diverging priorities across generations. Younger business owners are more focused on workforce expansion (32%), new product launches (26%), and physical footprint growth (25%) compared to their older counterparts at 22%, 21%, and 18% respectively.
Looking ahead, small businesses identified several key success factors for 2025, including setting concrete goals (42%), increasing customer engagement (41%), and upgrading IT solutions (29%). The survey, conducted in October 2024, included responses from 1,106 financial decision-makers across various business sizes.
