The Small Business Growth Playbook for 2025

Yet, with limited resources and increasing competition, SMBs often struggle to access the right data to guide their strategies. To help SMBs navigate these challenges, Clutch partnered with Drive Research, a global market research firm, to survey 500 SMB decision-makers across industries to uncover the factors shaping 2025:

• Purchasing intentions
• Outsourcing behaviors
• Strategic priorities

By leveraging real-world data and insights, the 2025 Small Business Growth Playbook helps business leaders make smarter, more confident decisions. Whether you’re refining your budget, exploring new partnerships, or optimizing these insights will provide the clarity and direction needed to navigate the challenges ahead.

Key Insights from the 2025 Small Business Growth Playbook

These insights reflect the stated priorities of SMBs as they strategize for 2025:

• 44% of SMB decision-makers agree that AI will have the biggest business impact in 2025, as artificial intelligence is becoming a key driver of innovation and efficiency for SMBs.
• 63% of SMB decision-makers are prioritizing profitability, while 62% are focused on growth—indicating that businesses are balancing both financial success and scaling operations for the year ahead.
• 58% of SMBs are prioritizing both enhancing customer experiences and improving operational efficiencies, highlighting a focus on both immediate financial success and long-term sustainability.
• 70% of SMBs plan to increase outsourcing in 2025, with a strong emphasis on leveraging external expertise in marketing, technology, and customer service to stay competitive.
• 61% of SMB decision-makers say cybersecurity is crucial for growth in 2025, reflecting the growing importance of robust cybersecurity strategies in an increasingly digital world.

By embracing AI, outsourcing, cybersecurity, and operational efficiency, businesses are positioning themselves for sustainable growth in a competitive market.

The Top Strategic Priorities for SMBs in 2025

Growth and profits are always top-of-mind for SMBs, but additional priorities are catching up. The key focus areas for SMBs include:

• Improving profitability (63%)
• Growth/scaling operations (62%)
• Enhancing customer experiences (58%)
• Operational efficiency (58%)

The near-equal emphasis on enhancing customer experience and operational efficiency signals a significant shift toward a more holistic picture of success.

SMBs now understand that customer experience and operational efficiency aren't just support functions, but critical for long-term success:

• Customer experience is important because loyal customers drive repeat business. Investing in personalized interactions and strong support builds those relationships.
• Operational efficiency uses technology to help SMBs cut costs and adapt faster. 

When asked how leaders of their organization plan to achieve their goals for 2025, the top response from SMB decision-makers was leveraging new technology such as AI.

Actionable Takeaways:

• Closely monitor economic trends and emerging technologies to stay competitive in 2025.
• Invest in flexible strategies that adapt to market shifts, such as diversifying revenue streams or automating processes to improve efficiency.
• Prioritize technology adoption that enhances productivity, such as AI-driven tools or cloud-based solutions.
• Consider conducting regular market research to assess evolving economic conditions and industry advancements, ensuring business priorities remain aligned with growth opportunities.

Learn More: "10 Ways to Take Advantage of Technology in Your Business". 

Challenges and Opportunities for SMBs

SMB decision-makers are entering 2025 with a high degree of confidence in their businesses. This sentiment signals a strong business environment where companies anticipate new opportunities, expansion, and advancements in their industries. In fact, over 4 in 5 SMB decision-makers express optimism about both growth and innovation in the coming year.

Economic Uncertainty and AI Adoption

While SMBs are optimistic about growth and innovation, they also recognize key challenges ahead. Nearly half (48%) of decision-makers cite economic uncertainty as their top concern for 2025.

Simultaneously, AI adoption is seen as a major hurdle by 44% of SMBs surveyed. 

This dual challenge requires careful navigation. While economic worries may prompt cautious spending, strategic AI investments are crucial for long-term competitiveness. Additionally, targeted support and resources will be vital for overcoming both economic headwinds and the complexities of AI implementation. Practical applications and talent development will be key to successful AI integration.

Actionable Takeaways:

• Prioritize strategic AI investments to maintain long-term competitiveness, even amidst economic concerns.
• Provide targeted support and resources to address both economic challenges and the complexities of AI adoption.
• Focus on practical AI applications and talent development to ensure successful integration within the organization.

Additional Reading: "How to Best Leverage B2B Services Through Economic Downturn". 

Cybersecurity Risks

Cybersecurity and data security stood out as the most common risk management strategies mentioned by SMB decision-makers for 2025, making it now mission-critical. With 61% of decision-makers seeing it as crucial for growth this year, it's a core business need.

This focus on cybersecurity reflects growing concerns about data breaches, cyberattacks, and regulatory compliance, as SMBs recognize that even a single security incident can have significant financial and reputational consequences. With cyber threats evolving rapidly, businesses can no longer afford to take a reactive approach; instead, proactive security measures are essential.

By prioritizing cybersecurity, SMBs can mitigate risks, protect sensitive data, and build trust with customers and partners.

Risk Management Strategies from SMB Leaders:

• “We’re focusing on cloud security with breach analysis and data protection through a secure encryption solution that can protect customer data and information.”
• “Cyber security is very important to us... we really look into that area extensively and want to make sure we spend what is ever needed.”
• “We need to beef up our IT and cyber security to make sure we are prepared.”

Actionable Takeaways: 

• Invest in managed security services or outsourcing cybersecurity expertise to enhance protection without overburdening internal teams.
• Have a well-defined incident response plan to ensure quick action in case of a breach.

The Power of Outsourcing to Grow Your Business

Outsourcing is not just a cost-cutting measure—it’s a strategic tool that enables businesses to access specialized expertise, improve operational agility, and focus on core growth initiatives. 84% of SMBs are currently outsourcing at least some of their operations to external providers, consultants, or agencies.

Looking ahead to 2025, our research reveals that 70% of SMB decision-makers anticipate increased reliance on external partners.

Small Business Trends for Outsourcing in 2025

Marketing and advertising are poised to be a key area of focus, with nearly half (45%) of SMB decision-makers anticipating outsourcing these functions. This likely reflects SMBs' struggle to keep up with evolving marketing technologies and access specialized talent without the overhead of in-house teams. This targeted outsourcing approach allows them to optimize resources, enhance marketing effectiveness, and grow your business.

Learn More: "How to Successfully Outsource Your Marketing Efforts in 2025". 

AI is another key focus area, with 47% of SMBs prioritizing outsourcing those efforts. Technology (43%) services are also high priorities, reflecting a broader trend of leveraging external partners.

Key Factors When Selecting an Outsourcing Partner

While 65% of SMBs prioritize cost effectiveness in outsourcing, other factors still carry a lot of weight. Other key considerations also play a significant role:

• 50% emphasize quality control measures
• 46% prioritize alignment with business objectives
• 41% seek specialized expertise

With at least 40% of SMBs weighing these additional factors, outsourcing partners must take a balanced approach—demonstrating affordability while showcasing strategic value.

When SMBs select service providers, consultants, or business partners, clear and consistent communication emerges as the most important factor, with 81% of decision-makers emphasizing its significance. This underscores the need for transparency, responsiveness, and proactive engagement from external partners.

The most important factors for SMBs when choosing service providers and consultants are:

• Clear and consistent communication (81%)
• Deep industry knowledge and experience (78%)
• High return on investment (ROI) (77%)
• Alignment with company culture and values (75%)
• Long-term partnership potential (74%)
• Flexibility in services offered (74%)
• Verified reviews and testimonials (69%)

Actionable Takeaways:

• Use outsourcing as a company growth strategy, not just a cost-cutting measure.
• Free up internal teams by outsourcing non-core business functions.
• Leverage outsourcing AI and automation.
• Invest in outsourcing marketing and technology for competitive advantage.
• Prioritize expertise over cost alone.
• Think long-term when choosing outsourcing partners.
• Establish clear and consistent communication with service providers.

Key SMB Growth Strategies for 2025

As SMBs navigate 2025, decision-makers are strategically aligning their growth plans around three key pillars:

• Critical technologies
• Workforce expansion
• Economic optimism

The rapid evolution of technology is reshaping how businesses operate, with cybersecurity, data analytics, and AI emerging as essential tools for efficiency, security, and competitive advantage. Simultaneously, SMBs are adopting flexible workforce strategies, balancing internal hiring with outsourcing to meet their evolving needs.

This forward-looking approach is reinforced by a strong sense of economic optimism, with the majority of SMB leaders expressing confidence in the broader market. This optimism is fueling investment in technology and talent, positioning businesses to scale operations, enhance productivity, and mitigate risks.

Critical Technologies

Technology is at the core of SMB success in 2025, with cybersecurity (61%), data analytics (52%), and AI (51%) leading as the most critical growth drivers. The heightened focus on cybersecurity reflects increasing concerns over data protection, regulatory compliance, and cyber threats. Meanwhile, data analytics and AI adoption signal a shift toward data-driven decision-making and process automation.

Generational and company size trends further highlight AI’s role in business growth — Gen X and younger leaders, along with SMBs with more than 50 employees, are more likely to view AI as essential. This suggests that larger and more tech-savvy organizations are embracing AI for efficiency and competitive advantage.

Actionable Takeaways:

• Prioritize cybersecurity investments.
• Leverage AI and data analytics for smarter decision-making.
• Optimize technology adoption based on business size and goals. 

Workforce Expansion

SMBs are facing increasingly complex operational demands, including specialized tasks in areas like IT, marketing, finance, and customer service. Outsourcing allows them to access expertise and resources that may be too costly or difficult to maintain in-house. 

In 2025, 3 in 5 SMBs will rely on outsourcing to support growing business demands. Leveraging outsourcing will put them in a better position for sustainable growth and success. This trend is likely to continue as businesses seek to optimize their operations, enhance their competitiveness, and navigate the challenges of a dynamic global marketplace.

Actionable Takeaways:

• SMBs should consider outsourcing specialized tasks to access expertise and resources they may not be able to maintain in-house.
• Embrace outsourcing to support growing business demands and ensure sustainable growth in 2025 and beyond.
• Leverage outsourcing to optimize operations, enhance competitiveness, and adapt to a dynamic global marketplace.

Additional Reading: "Types of IT Outsourcing: What Does Your Business Need?". 

 Economic Optimism

Despite economic uncertainty, 72% of SMBs view the economic climate positively, with only 10% feeling that the economic climate was negative going into 2025. This widespread confidence is a key driver behind increased investments in technology, workforce expansion, and strategic growth initiatives.The majority of SMBs are approaching the year with a forward-thinking mindset, ready to seize new opportunities and expand their market presence.

This optimism is translating into concrete business actions. Many SMBs are prioritizing digital transformation, adopting AI, data analytics, and cybersecurity tools to enhance efficiency and competitiveness.

Actionable Takeaways: 

• SMBs should leverage their positive outlook to drive investments in technology, workforce expansion, and company growth strategy initiatives.
• Prioritize digital transformation by adopting AI, data analytics, and cybersecurity tools to boost efficiency and competitiveness.
• Maintain a forward-thinking mindset to seize new opportunities and expand market presence in 2025.

Next Steps for SMB Leaders

The 2025 Small Business Growth Playbook report gives tons of industry insights from SMB-decision makers, but if you walk away with anything, we hope it’s these next steps:

1. Prioritize Profitability and Growth in 2025: With 63% of SMB decision-makers prioritizing profitability and 62% focusing on growth, businesses should align their strategies with these core objectives. Investing in operational efficiency and customer experience—both cited by 58% of SMBs—can help drive sustainable growth.
2. Leverage AI to Stay Competitive: AI adoption is expected to have the greatest impact on SMBs in 2025, with 44% of decision-makers recognizing its importance. Implementing AI-powered tools for automation, analytics, and customer engagement can enhance efficiency and innovation.
3. Strengthen Cybersecurity to Mitigate Risks: With 61% of SMB decision-makers considering cybersecurity critical for growth and 40% of male decision-makers identifying it as a top business impact in 2025, businesses must invest in robust security frameworks. Protecting sensitive data and digital assets is essential for long-term success.
4. Invest in Data-Driven Decision-Making: Over 52% of SMB decision-makers view data analytics tools as critical for growth, and 42% are prioritizing strengthening data-driven decision-making in 2025. Businesses should enhance their analytics capabilities to improve strategic planning and customer insights.
5. Expand Outsourcing to Improve Efficiency: With 70% of SMBs planning to increase outsourcing in 2025 and 84% already outsourcing some operations, leveraging external expertise can drive efficiency. Nearly 47% plan to outsource AI, and 45% plan to outsource marketing services, making these key areas to consider for operational support.
6. Focus on Customer-Centric Strategies: To stand out in competitive markets, over 57% of SMBs are adopting personalized customer service, 54% are integrating new technologies, and 52% are utilizing creative marketing tactics. Strengthening customer relationships and leveraging innovation can enhance brand loyalty and market positioning.

Clutch is committed to making the B2B buying process more transparent, connecting businesses with the ideal partners to fuel their impact.

This report embodies that commitment, offering actionable intelligence to support your strategic planning and drive success in the evolving marketplace.

About the Author

Clutch Team

See full profile