As we approach the end of the year, we look ahead to next year and the possible business trends.

5 Small Business Trends as We Look Ahead to 2025

Here are our five small business trends. Though the more things change the more they stay the same. Last year we looked back on four business trends of 2023—three of them are still with us (economic uncertainty, AI, and remote work).

1. Economic Uncertainty

86% of business leaders said economic uncertainty was a major challenge in 2024. Well, get ready for more. With the election of President Donald Trump to a second term, we’ve swapped election uncertainty for policy uncertainty as Trump promises about tariffs and immigration, among other issues, play out. It could be a mixed bag: stocks soared on news of the election results, but then markets corrected over worries about policy implementation and cabinet picks.

It’s hard to know what to expect. But a possible silver lining? Among all the economic uncertainty of 2024, a U.S. Chamber of Commerce report said 68% of businesses were comfortable with their cash flow and 22% increased their staff.

Small businesses have weathered uncertainty before and thrived. 

2. Focus on Customer Experience

If customers are always right, then pay attention to customer behavior. Three specific areas show ways small businesses can improve the customer experience especially with growing generational divides:

• Phone calls: Young people may love their smartphones, but they hate phone calls. A recent study found 81% of millennials get anxiety before making a call and 75% avoid phone calls because they’re time consuming. A similar study of Gen Z Australians found that 87% admitted to handing an unpleasant task via text instead of call and 60% dread making or accepting a call. Older adults still rely on the phone, but make sure any business practice—whether placing an order or registering for a class—has an online, non-phone call option.

• Payment methods: Credit and debit card use continues to rise as checks disappear and cash dwindles. Mobile app and contactless payment also continue to grow. Another generational divide: Consumers younger than 55 used cash for 12% of all payments, compared to using cash for 22% of payments for those 55 and older. Despite the fees, accepting credit cards is a must for small businesses. It’s also worth diversifying the payment options you accept.

• Active online: 3 in 4 Gen Z and millennial shoppers said an online presence is key, and 74% said a lack of recent updates on social media is bad. The message is clear—get online or get left behind.

3. AI for Small Businesses

Nearly all small businesses—98%—are using tools enabled by artificial intelligence (AI). 40% are using generative AI to create copy and images, double from the year before.

“When implemented thoughtfully by domain experts, (AI) can drive major efficiencies,” said Amanda Reineke, owner of Notice Ninja that automates tax notices. “AI won’t replace human work, but will augment and lift it.”

That human element continues to be key. Someone still has to put in the prompts and refine the results. That’s where small businesses may struggle—can they find the time to experiment and rework to get something that works?

“It’s great for efficiency but still requires human creativity and strategy to get the best results,” said Jan Watermann, who owns a marketing agency.

4. Sustainability

More companies are taking action to embrace sustainable business practices, not just for the climate but because it’s good business. Reducing environmental impact is all about efficiency and reducing waste. Customers are demanding it and it can help the bottom line.

“U.S. companies aspiring to be global leaders understand that climate action is no longer optional—it’s a necessity,” said Carbon Disclosure Project Chief Executive Sherry Madera.

5. Flexibility in Remote Work

The debate over remote work sparked by the pandemic continues to rage. Trump may consider ending remote work for federal employees (as a way to thin the ranks), but a number of companies still embrace it. As hiring remains tight, flexibility is an ideal way to retain talent.

Shifting away from the large, fixed expense of office space has freed companies to explore alternatives. A hybrid approach, like Evolve Workplace, that gives employees a consistent place to gather in person but doesn’t require a huge office footprint might be an option to explore.

Here at Evolve Workplace we’ve got flexibility in your working options. We’re always here to talk about trends and best practices for small businesses.