7 Small Business Stats to Know in 2025

Many small business owners find themselves at a crucial juncture as they  contemplate strategic initiatives for 2025. With a rapidly changing market landscape, small businesses are keen to position themselves for the coming year. 

Evolving consumer expectations, the emergence of new technologies, and potential shifts in industry regulations are likely to redefine the market in 2025. Staying abreast of these changes can help small businesses adapt and remain competitive. This involves not only observing trends but also understanding their implications across various aspects of business operations. 

Small businesses must remain agile, employing innovative solutions and proactive strategies to manage potential disruptions. In doing so, they can safeguard their market presence and even seize opportunities for growth in dynamic environments.

These statistics can help small businesses anticipate changes and plan for the coming year.

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1. 44% of Small Businesses Anticipate Increasing Staff in the Next Year (Source: US Chamber of Commerce)

According to the US Chamber of Commerce, 44% of small businesses anticipate staff increases in 2025, signaling that many businesses anticipate increased stability, demand, or opportunities for expansion in the coming year. 

Given this positive outlook, small business owners should prepare for this growth by ensuring they have the tools and systems to support new staff members. Here are some questions to guide your staff expansion plan for 2025:Which roles are critical for achieving your 2025 business goals? Focus on hiring and training for these roles, and consider addressing skills gaps to strengthen them. To reduce costs, consider scaling down or eliminating non-essential roles.

1. How effective is your current onboarding process for new employees? What can be improved? For example, you may want to consider implementing new training programs to ensure new hires can get up to speed on projects as quickly as possible. Additionally, you may want to consider implementing trusted onboarding software or hiring a third-party provider to improve employee experience and cut onboarding costs.
2. Are your current workflows and systems capable of supporting a larger team? Do you need new software, systems, or tools to streamline your HR processes and operations?

2. Over 25% of Business is Now Conducted Online (Source: IBISWorld)

In 2024, over a quarter of business was done online, reflecting a drastic shift toward digital commerce. As a result, businesses — whether B2B or B2C — must have a well-thought-out digital strategy and robust online presence moving forward to remain competitive.

To achieve this, businesses need to invest more in their web presence, including in web design and development as well as digital marketing. A visually appealing, frequently updated, informative, and search engine optimization (SEO)-friendly website, along with an active social media presence, has a much higher chance of attracting and retaining potential leads and customers than a website or social media page that is rarely updated or lacks engaging content.

3. 89% of Customers Read Online Reviews Before Making a Purchase (Source: Hostinger)

2024 also saw a staggering 89% of customers reading online reviews before making a purchase. This trend reveals that reviews are vital in establishing customer trust and credibility. The more positive reviews you receive, the more customers you'll attract, while negative ones can deter potential buyers. On the flip side, a lack of reviews will also put you at risk of losing customers to competitors with a stronger online reputation.

Ultimately, online reviews are essential for driving buyer decisions in both B2B and B2C industries. Here are some actionable tips for encouraging customers to post online reviews for your brand:

• Encourage satisfied customers verbally and through text and email to leave feedback on Google Business, Yelp, and other platforms. Consider asking them to leave reviews after an appointment.
• Respond promptly to positive and negative reviews. This shows that you care about customers' experiences.
• Monitor your reputation by using review management tools. These software solutions can highlight trends in reviews — like staff behavior patterns or user interface issues that can trigger lower ratings — that you can use to improve your service offerings.

Additional reading, ‘6 Tips for Increasing Positive Online Reviews.’

4. 40% of Business Leaders Report Increased Productivity Through AI Automation (Source: Hostinger)

AI automation is changing how small businesses operate, with over 40% of business leaders reporting improved productivity after implementation. This means businesses need to implement AI automation to remain competitive.

You can implement AI automation by following these steps:

1. Identify repetitive tasks that can be automated, such as data entry.
2. Pick budget- and user-friendly AI automation tools.
3. Implement the tool into your existing workflows.
4. Conduct tests with the chosen tool(s) before launch.
5. Measure results and choose another tool if needed.

Additional reading, ‘4 Benefits of Making Your Own AI Tool.’

5. Almost Two-Thirds (65%) of Small Businesses Said Customer Referrals Are Their Best Source for Customer Acquisition (Source: LocaliQ)

According to LocaliQ, 65% of small businesses said customer referrals are the top source for acquiring customers. This highlights the importance of customer referrals, which come with a built-in level of trust since they're recommendations from people who have already had positive experiences with your company.

Follow these tips to increase customer referrals:

• Provide exceptional customer service as satisfied customers have a much higher chance of suggesting your brand to potential leads.
• Create a referral program that offers incentives to would-be referrers. Examples include rewards, discounts, and exclusive perks for successful referrals.
• Follow up with satisfied customers through appointments, social media, and email to maintain relationships and stay at the forefront of their minds.

6. Small Companies Invest the Most in Social Media Marketing (52%), Social Media Ads (47%), and Search Advertising (40%) To Grow Their Business (Source: LocaliQ)

Research by LocaliQ has revealed that small companies invest the most in the following to grow their business: social media marketing (52%), social media ads (47%), and search advertising (40%). These channels help companies connect with their customers, promote products and services, boost brand visibility, and can have a large impact quickly. They are also relatively cost-effective.

Here are some tips for implementing social media marketing:

• Create a content calendar to help you plan and release posts at optimal times to ensure maximum engagement.
• Focus on creating quality content rather than posting for the sake of posting, especially entertaining, educational, and inspiring content tailored to your audience's pain points and interests.
• Track performance through analytics tools to see what content works best. For example, if Instagram reels yield the highest engagement and click-through rates to your website, you should make more of them.

To implement social media ads, consider following these guidelines:

• Define clear goals by identifying if you want to boost website traffic, brand awareness, or sales conversations.
• Test ads by using different calls-to-action (CTAs), visuals, and headlines.
• Use platform-specific tools to target audiences based on interests, demographics, and behaviors.

Here's what you can do to implement search advertising:

• Pick relevant keywords and focus on the ones your target customers are most likely to search for.
• Write high-quality and well-researched ad copy that highlights your brand's key benefits.
• Optimize landing pages to ensure people land on the page that fits their interests the most. For instance, if you're targeting gaming laptop users, you need to use the right keywords to optimize your landing page for gaming laptops specifically. This includes product reviews, blog posts, and other content that appeals to gamers.

7. 28% of Data Breaches Involved Small Businesses in 2024 (Source: Verizon Business) 

Data breaches are often linked to multinational companies with millions of data points in their systems. However, the reality is that small businesses are often targeted by hackers.

According to Verizon Business, nearly 30% of data breaches involved small businesses in 2024. One of the most common types of cyber attacks on small businesses is phishing, which is when cyber attackers send emails and other messages pretending to be from reputable companies to induce individuals to reveal personal information, such as credit card numbers and passwords.

Fortunately, phishing and other cyber-attacks are preventable if you invest in cybersecurity training for your team. At a minimum, training should include the following topics:

• Reporting cybersecurity incidents
• Spotting and handling phishing attempts
• Updating and patching IT systems
• Strengthening passwords
• Securing sensitive information and IT assets

Connect with industry-leading cybersecurity professionals on Clutch.

Key Takeaways for Small Businesses in 2025

In 2025, the market will undergo major changes, including new technological advancements. As such, small business owners need to adapt to stay competitive. Here are some important strategies based on small business statistics that can help you succeed in 2025:

• Plan for staff expansion and training.
• Enhance your digital presence with professional web design and SEO-friendly web copy.
• Encourage and respond to online reviews to build trust and drive sales.
• Use AI tools to increase productivity and efficiency.
• Implement referral programs to boost organic growth.
• Invest in social media marketing and ads and search advertising to attract and retain leads.
• Protect your business by investing in cybersecurity training and measures.

Implementing these tips based on small business stats can be challenging, especially for small teams. That's where Clutch comes in. You can use our platform to search, find, and decide on a service provider in record time. Our vetted providers have verified reviews from real business leaders worldwide and offer a wide range of services for improving your business in 2025, including cybersecurity, web design, staff augmentation, and more.

About the Author

Hannah Hicklen Content Marketing Manager at Clutch

Hannah Hicklen is a content marketing manager who focuses on creating newsworthy content around tech services, such as software and web development, AI, and cybersecurity. With a background in SEO and editorial content, she now specializes in creating multi-channel marketing strategies that drive engagement, build brand authority, and generate high-quality leads. Hannah leverages data-driven insights and industry trends to craft compelling narratives that resonate with technical and non-technical audiences alike. 

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