The August 2025 Main Street Business Survey, powered by the Freedom Economy Index, indicates that only 50% of small business owners have begun exploring artificial intelligence implementation, while rising costs remain their primary concern. The survey, now in its fourth year, shows businesses moving from defensive postures to cautious growth strategies despite persistent economic challenges.
According to the findings, 25% of respondents identified rising costs as their top concern, while 22% cited declining consumer demand as their primary issue. Access to affordable capital ranked third at 12%. Michael Seifert, CEO of PublicSquare, noted that small business owners have endured inflation, supply chain disruptions, and mandates, preferring government to step aside and allow free market forces to operate rather than seeking bailouts.
AI adoption remains limited, with 45% of business owners reporting no AI use in their operations. Among adopters, 32% find AI most beneficial for marketing and advertising, followed by business operations (9.2%), customer engagement (7.9%), financial management (3.6%), and workforce management (2%). Notably, 26.6% of AI users report reduced staffing needs, suggesting potential labor market impacts as adoption increases. View the full results here.
The survey introduced the new State of Main Street Index, debuting at 57 on a 100-point scale, indicating positive momentum as scores above 50 signal optimism. Andrew Crapuchettes, CEO of RedBalloon.work, observed that business owners are making cautious growth investments despite persistent high costs and policy uncertainty slowing decision-making. They seek stable rules to facilitate long-term planning regarding AI, expansion, or hiring.
Regarding political matters, the Department of Government Efficiency received high approval ratings, with 38.3% rating its performance as excellent and 37.6% as good. While 91% of business owners agree with Elon Musk's call for balancing the federal budget, only 34% support his opposition to raising the debt ceiling. By a three-to-one margin, respondents believe Musk's proposed third party would be bad for America's economic future.
Krystal Parker, President of the U.S. Christian Chamber of Commerce, emphasized that businesses remain resilient and the free market stands ready to reward risk-takers. However, she warned that continued high prices forcing consumers to tighten spending could slow economic progress for all participants.
