Small business confidence dipped in the fourth quarter of 2025, according to the U.S. Chamber of Commerce and MetLife Small Business Index. Joining us on the latest U.S. Chamber of Commerce Small Business Update is Tom Sullivan to break down these quarterly results.
According to Sullivan, the index fell to 68.4 from 72 in the third quarter, reflecting caution among owners facing inflation, government uncertainty, and rising interest rates.
Despite the decline, however, small businesses remain resilient. The survey found that 91% of owners plan to maintain or expand their workforce over the next year, signaling continued optimism in hiring and employee retention.
The drop in confidence is largely tied to concerns over cash flow and plans to reinvest in operations. Many owners are delaying expansion projects and new investments amid uncertainty about government shutdowns and fluctuating interest rates.
Employee retention has become a growing challenge. 17% of respondents cited retaining key staff as a top concern, up from 12% a year ago. Experts note that in small businesses, each employee accounts for a significant share of operations, making workforce stability critical.
Still, small businesses are showing signs of adaptability. Seasonal hiring is on the rise, and some entrepreneurs are turning side hustles into full-fledged businesses, expanding operations while retaining flexible work models. Charitable giving and community engagement also remain high priorities, highlighting the central role small businesses play in their local economies.
Additionally, the U.S. Small Business Administration has increased support for entrepreneurs, with the Administrator Kelly Leffler reporting that the SBA is processing hundreds of millions of dollars in small business loans, working to overcome delays caused by the recent government shutdown.
Sullivan emphasizes that resiliency is key for small businesses navigating these challenges. Close attention to daily cash flow, strategic planning, and technology leverage are essential to sustaining operations and capitalizing on opportunities.
“We're seeing that the roller coaster of this year in revenues actually has made this fourth quarter, the holiday season, more important really than ever in recent history.”
The U.S. Chamber of Commerce continues to advocate for small business owners in Washington and offers resources for networking, education, and growth. Chamber leaders stress the importance of staying engaged with both local and national chambers to access guidance, connections, and policy support.
As the holiday season concludes, small businesses are focused on ending the year successfully, maintaining workforce stability, and preparing for growth in 2026. Despite economic pressures, experts remain confident that American entrepreneurs are well-positioned to adapt and thrive.
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