Running a small business right now comes with its fair share of challenges. Between rising costs, inflation, and new supply chain issues, many SMBs are feeling the pressure, and rightly so. Add in political uncertainty, shifting trade policies, changing consumer behaviors and increased competition, and just managing through every day can feel like a victory.
Amidst all these challenges, we’re reminded of one constant—small businesses remain resilient and determined to succeed. Entrepreneurs are adapting to change by leaning into technology, rethinking their marketing strategies to attract and retain new customers, and focusing on efficiency to maintain flexibility while powering growth.
It’s a lot to handle, and we see you pushing through it!
Our latest report, Small Business Now: Growth in Motion, explores the motivations, strategies, and outlook of 1,600+ recently founded (<5 years in operation) SMBs in Australia, Canada, the UK, and the US. It takes a comprehensive look at how these entrepreneurs navigated the critical early stages of their growth, and how they are preparing for the future. Here’s a breakdown of what we found.
Optimistic, But Realistic: The SMB Mindset for 2025
As we’ve seen in the past, most entrepreneurs were driven by the dream of a better work-life balance, the desire to be their own boss, or the financial potential of entrepreneurship.
Regional Breakdown:
Most of these businesses faced initial challenges in their early days, but they were also built to withstand change and disruption, like managing through a global pandemic or a financial crisis. Despite their obstacles, nearly all new entrepreneurs say they would still choose to take the leap into small business ownership again if given the chance—and we’re seeing that directly impact their approach to business this year.
Despite the current economic and political landscape, these new entrepreneurs aren’t backing down. Nearly half (45%) believe their business will grow in 2025, but they also acknowledge the hurdles ahead, with 55% feeling a bit unsure due to external challenges.
Regional Insight: How are Canadian SMBs viewing economic challenges?
Canadian small businesses are facing some tough times due to economic issues and changes in how people shop. 34% of new Canadian small businesses are worried about the economy and 31% are concerned about customer experience. To deal with these challenges, they’re focusing on getting new customers and tracking how well they’re doing. More than half are planning to use social media to grow their business, and 25% are going to use email marketing to build stronger customer relationships.
Bottom line: Even with these challenges, these newer Canadian small businesses are finding ways to be more efficient, keep customers coming back, and try new marketing strategies to take advantage of the increased local support for Canadian businesses.
Regional Insight: How are UK SMBs viewing economic challenges?
New and early-stage UK SMEs are optimistic but cautious, balancing economic concerns with growth strategies. They’re looking to tech and AI to drive their marketing – 92% see tech as essential for growth, and 72% plan to use AI for marketing in 2025. As they refine their strategies, 37% of these new UK entrepreneurs are using email marketing (more than any other region), and 27% are planning to learn new marketing strategies to overcome challenges.
Bottom line: Early-stage UK SMEs will need to balance growth with economic uncertainty. Investing in AI and digital marketing will give them an edge when it comes to getting and keeping customers.
Overall, they’re focused on making the right choices to set themselves up for long-term success.
- 35% believe that economic factors will significantly impact their business success.
- 52% agree that starting their business was difficult, and 27% felt overwhelmed in their early years.
- Still, 95% of entrepreneurs say they’d do it all over again—with 71% excited and 57% proud to be in the SMB space.
Regional Insight: What is driving optimism and innovation in Australia and New Zealand?
New ANZ small businesses are feeling good about growth and innovation! They’re ready to try new things with marketing and improve their customers’ experience. Key findings show that 49% of new ANZ small businesses are highly confident in their growth, the highest of all regions surveyed, with 88% feeling prepared for unexpected market shifts. And, 76% of early-stage ANZ entrepreneurs plan to integrate AI into their marketing, the highest of any region.
Bottom line: For new ANZ businesses, 2025 is the year to innovate and grow, especially by investing in AI-driven marketing.
Expanding Beyond Social Media: SMBs Are Reaching New Audiences
While social media is the go-to marketing tool for new SMBs, many have begun to recognize that relying on it alone isn’t enough. Social media algorithms change, ad costs fluctuate, and organic reach isn’t guaranteed anymore. Social-first business owners now understand the need to tap into other proven channels, like email and SMS marketing, if they hope to grow and drive more sales, reservations, donations, etc.
- 63% of SMBs rely on social media as their main marketing channel, with 54% planning to keep it as their primary channel in 2025.
- Even so, 33% of SMB owners see email marketing as an underutilized tool for converting leads and building customer loyalty.
- Just 15% are investing in SMS/text marketing, even though it has the highest engagement rate of any marketing channel.
The big takeaway from this? Don’t put all your eggs in one basket. Balance social media efforts with owned channels like email where you can speak directly to customers and curate an experience that will keep them coming back for more.
Tech and AI: The Secret to SMB Growth
Technology is no longer optional for small businesses—it’s a key driver of efficiency and scalability. New SMBs are increasingly turning to AI and automation to cut down on wasted time in their marketing and operations, make smarter decisions, and drive long-term success.
- 91% of new business owners agree that technology has been essential to their success.
- 72% plan to use AI for marketing in 2025.
- 37% will focus on content creation and brainstorming.
- 32% will use AI to analyze customer data.
- 31% will use AI for personalized marketing.
Regional Breakdown:
Further, 38% of new global small business owners plan to learn new marketing strategies, and 28% will use AI and automation to overcome challenges like customer acquisition, increasing sales, and improving efficiency.
What does this mean? New SMBs are all-in on AI, and those who use it effectively have a clear competitive edge.
Looking Ahead: Innovating & Adapting for Sustained Success
Early-stage small businesses around the world are facing a lot of uncertainty. But, these newbies are flexible and rolling with the punches, and they are ready to win. Agility, adaptability, and smart marketing choices will help set them apart.
Here’s your 2025 SMB marketing action plan:
- Prioritize Customer Relationships: Keeping customers around is just as important as bringing new ones in. Small businesses should be all about creating personalized experiences, offering loyalty programs, and just generally making customers feel valued. Don’t just look at your customers as one-time buyers—invest in long-term relationships.
- Mix Up Your Marketing: Sure, social media is great, but it’s time to diversify a little. SMBs should look into other channels like email and SMS to reach their audience. These tools can help you stay connected with your customers, nurture leads, and build a more well-rounded marketing strategy that helps you stand out in a crowded market.
- Tap Into Technology & AI Tools: It’s not just a buzzword; it’s a game-changer. Our data highlights that new SMB owners who integrate AI into their marketing report stronger confidence and growth potential—showing that technology isn’t just a tool, but a growth driver. These tools can help you automate tasks, personalize marketing, and analyze customer data, helping you streamline operations and drive growth more efficiently.
At the end of the day, it’s all about staying flexible and proactive. By focusing on these key areas, you can build a business that’s resilient and ready to take on whatever 2025 throws your way.
We’re here to help you do just that! From email to ecommerce, SMS to social, Constant Contact delivers tools to help small businesses grow.
Want to dive deeper into the trends shaping small businesses this year? Check out the full Small Business Now: Growth in Motion report to get even more insights on how the newest entrepreneurs are preparing to thrive.
