The economic landscape for small businesses in the United States is showing signs of a remarkable turnaround, as evidenced by the recent Freedom Economy Index (FEI) Survey conducted in March 2025. Surveying 50,000 small business owners across the nation, the findings indicate a dramatic shift from the economic pessimism that prevailed in previous months. Notably, 68% of respondents now foresee economic growth in 2025, a stark contrast to the 57% who predicted a recession in October.
This surge in optimism is reflected in key business strategies, including hiring and expansion plans. Currently, 32% of small businesses are looking to hire additional staff, a significant increase from the 9.5% reported in October. Furthermore, the percentage of businesses considering layoffs has dropped to 2.6%, down from 10% in the fall. These indicators suggest a growing confidence among small business owners in their ability to navigate the current economic environment.
Inflation, a persistent challenge for small businesses, appears to be easing. While 60% of owners still report feeling its effects, this is a considerable improvement from the 88% who cited inflationary pressures in October. This reduction in financial strain may be contributing to the overall positive outlook among entrepreneurs.
Another area of growth is the adoption of technology, particularly artificial intelligence (AI). The survey found that the number of small businesses exploring or implementing AI solutions has doubled, highlighting an increasing interest in leveraging technology to enhance operations and competitiveness.
Michael Seifert, CEO of PublicSquare, underscored the importance of these findings, pointing out that they reflect the views of main street businesses rather than large corporations. Andrew Crapuchettes, CEO of RedBalloon.work, added that small businesses are not only surviving but are poised for growth, actively seeking investment and expanding their capabilities.
The FEI Survey's results suggest a potential turning point for the U.S. economy, with small businesses demonstrating resilience, adaptability, and a renewed sense of optimism. As these enterprises gear up for expansion and investment, their collective confidence could herald a broader economic recovery and growth in 2025.
