Small businesses had one of their best years in recent memory in 2025 despite economic challenges. At the same time, many owners say they faced significant personal sacrifices and rising cost pressures.
Bluevine Small Business Growth and Trends Report 2025 examined both sides of that story. The report draws on more than 210,000 active business checking accounts and a survey of 1,067 SMB owners conducted in November 2025.
Based on the results, more than half of U.S. small businesses met or exceeded their revenue projections last year. Nearly 68% rated their financial health as strong or stable.
Five industries posted account application growth between 64% and 91% year-over-year. Administrative services led all sectors. Education, retail, business management, and health followed close behind.
The personal cost of owning a business
More than 75% of small business owners reported not taking a full day off each week, and more than 20% say they never do.
Financial sacrifices were equally significant, with nearly 61% postponing their own payments in 2025 to maintain their business, and 7.2% doing so every month.
Nearly half of respondents, 49.2%, said they regularly question whether owning a business is worth it.
Dealing with inflation and tariffs
More than 80% of SMB owners reported challenges due to inflation in 2025, with nearly 40% calling it very or extremely challenging.
Rising operating costs were the top pain point, cited by nearly 41% of respondents. Increased cost of goods and cash flow problems rounded out the top three. Tariffs also added pressure, as small businesses account for nearly 97% of all U.S. importers. Most companies reported logistics costs rising 10% to 15%.
Businesses adapted to the rising costs in different ways. More than 61% of businesses surveyed say they raised prices to offset higher costs. About 15% switched suppliers, while another 15% renegotiated vendor terms. Only 7.5% cut jobs to adapt.
AI is a top trend in 2025
86% of SMB owners say they adopted generative AI tools in 2025. Most used them for sales support and data analysis.
Social media and e-commerce platforms now drive more than half of the revenue for one in five small businesses. More than 80% of businesses using multiple tech platforms reported gains in customer acquisition, relationship-building, and operational efficiency.
Cities seeing a small business boom
Indianapolis led all cities with a 361% year-over-year jump in SMB account applications. Columbus, Ohio, rose 200%, while Washington, D.C. climbed 175%.
The spike in Washington coincided with federal workforce reductions early in the year. Among workers laid off in the past one to two years, nearly 65% said they were actively planning to start a business.
The trend suggests that economic disruption, more than opportunity alone, is driving the next wave of small business formation.
Overall, the report shows that SMBs are resilient, but that resilience has a cost. Owners raised prices, renegotiated contracts, adopted new technology, and protected their teams. They did so while skipping paychecks, sacrificing personal time, and questioning their path. The 2025 numbers show a sector that performed well and the people who paid for it.
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