SMBs Are Doing More Than Ever. So Why Is Confidence Failing?

If you’re a small business owner, chances are 2025 has kept you juggling more than ever — from rising costs and tariff concerns to shifting customer habits and constant tech evolution. You’ve probably been spending more on marketing, sending more emails, exploring new tools, and trying different ways to reach your customers.  

But despite doing more, you might still be wondering, “Is any of this actually working?”

If so, you are not alone — and you definitely aren’t the only one asking. That’s exactly what we explored in our latest Small Business Now report, where we surveyed 2,500 small business decision-makers across the United States, Australia and New Zealand (ANZ), Canada, and the United Kingdom. What we found confirmed what many of you might be feeling: marketing effort and investment are up, but confidence in what’s actually working is slipping. Just 18% of SMBs say they feel “very confident” in their marketing — down from 27% in 2024.

The good news? This confidence gap can be closed. 

With clearer insights, stronger support, and tools built for how small businesses really work, you can turn effort into effectiveness — so you can stop guessing and start growing.

Economic Pressure Is Forcing Harder, Smarter Pivots

As economic pressure continues to shape decision-making, many are rethinking how they operate. You’re navigating real challenges, and so are your peers around the world:

• 44% say rising costs of goods as their top concern.
• 60% report tariffs have impacted sourcing. 

In response, many are adapting quickly:

• 46% are raising prices. 
• 39% are looking for new suppliers. 
• 22% are even delaying launches. 

The picture looks different depending on where you are in the world:

• In Canada, nearly half have increased prices and 69 percent cite supply issues, leading them to lean into local sourcing and focus on maintaining customer trust. 
• By contrast, 36 percent of SMBs in the US reported no operational changes — the highest of any market. 
• Meanwhile, ANZ entrepreneurs have the greatest economic confidence, with 67 percent optimistic about the rest of the year.

Regardless, only 17% of small business owners say they feel “very prepared” to adapt. But this is also where opportunity emerges. When you lack clear insights into what’s working (and what’s not), efficiency and insight become your new competitive edge.

From Effort to Impact: Smarter Strategy Starts Here

Small businesses, just like yours, continue to step up their marketing game. This year, 37% have increased their marketing budgets, many are returning to proven channels like email, and more are leaning into tools like AI and video to stay ahead. 

But these investments haven’t led to greater certainty. Marketing confidence has declined again this year, falling to just 18% globally, and this uncertainty is holding businesses back: 

• 23% of SMBs say their #1 frustration is not knowing what’s driving results.
• 41% say getting people to open or click is a challenge.
• 28% still struggle to prove the value of their email marketing.

You’re doing the work, but the hard truth is: more action doesn’t always mean better outcomes. 

This confidence gap — where activity is high, but certainty is low — is where many small businesses are stuck. Without a clear view of what’s driving results, it’s incredibly difficult to make confident, data-informed decisions. The gap isn’t ambition; it’s in insight and direction. 

Trusted Channels: Email and SMS Are Quietly Reclaiming Their Power

While you might be tempted to only use social media, tried-and-true channels, like email and SMS, are reemerging — delivering strong results with less cost and complexity.

• 44% of SMBs say email is their most effective channel — nearly double from last year.
• Among high-confidence marketers, 75% say SMS outperforms other channels.

Email is consistently rated a top performer, particularly effective in tech (49%), retail and e-commerce (47%), and professional services (46%). Meanwhile, SMS is gaining traction in health and wellness, where nearly 1 in 3 (29%) say it’s a top-performing channel — far higher than any other industry. 

Still, many aren’t fully leveraging these tools, often because they don’t know how to use them to their fullest potential. But with the right strategy and support, these trusted channels can be low-cost, high-impact growth drivers, especially critical when every dollar counts. 

Smart Tech Yields Real Results — If You Know What’s Working

As you’ve been experimenting with new tools this year — whether to save time, boost creativity, or stretch your resources — you’ve probably realized how core technology has become to your small business. 

AI adoption is accelerating, with nearly half (48%) of small businesses now using it to write emails, subject lines, or social posts (37%), create visual content (29%), and more. And when used with intention, it’s making a real difference. Small businesses using AI: 

• Are more likely to see success in email (53% vs. 35%).
• Perform better in paid social (43% vs. 20%).
• Report stronger search marketing results (21% vs. 9%).

But many are still hesitant — not because of cost, but because of confidence. Many are still unsure how to use it effectively and have concerns around data privacy (35%), trust in AI-generated output (31%), and brand inconsistencies (26%). 

• UK, Canadian, and ANZ small businesses significantly lead in AI adoption, with over 50% using AI in some capacity.
• Meanwhile, US small businesses lag behind at just 37%, and 26% say they don’t plan to optimize for AI-powered search. 
• ANZ entrepreneurs are using AI more cautiously than most, with 36% worrying about trust in outputs and 30% concerned that AI won’t match their brand tone/voice, the highest among any region.

Video is becoming another go-to tool, with 78% of small businesses now using it. The most confident businesses aren’t just using video — they’re using it strategically to connect, build trust, and drive results. The most impactful types of video content include: 

• Customer testimonials (27%).
• Company culture videos (26%).
• Promotional content (25%).
• Advice, tips, and how-tos (25%).

Still, one in 10 businesses using video say they don’t track its performance at all, which means they’re missing out on key insights that could help improve results. 

The tools are here — but tools alone won’t close the gap. But if you want to truly make them work for your business, you need insight, not just access.

From More to Meaningful: Bridging the Gap to Marketing That Works

Last year, small businesses pointed to time, resources, and lack of knowledge as their biggest challenges. In 2025, many are responding — investing more, exploring new tools, and returning to proven, high-ROI channels. Even so, many still lack the one thing that unlocks real growth: clear, actionable insight into what’s working. 

This year’s findings don’t just highlight the gap — they spotlight the opportunity to bridge it. 

Around the world, small businesses continue to show incredible resilience and ambition, but they need a clear path to focus their time and grow with confidence. With the right tools and support, they can shift from guesswork to growth, and finally close the gap between effort and impact.

So, What Does This Mean For Me?

If you are trying to make sense of your marketing in 2025, you’re not alone. Many of your peers are navigating the same uncertainty. 

Just remember: the solution isn’t doing more — it’s doing what works. 

That’s where Constant Contact comes in. 

Whether you’re experimenting with AI and video, streamlining your strategy, optimizing email campaigns, or diving into real-time performance data— we’re here to help you:

• Simplify your marketing.
• See what’s working (and what’s not).
• Scale with confidence.

Want to bridge this confidence gap? 

Download the full Small Business Now: 2025 State of Small Business Marketing Report to uncover the trends, insights, and practical strategies helping SMBs grow smarter this year.