The world of small business is always evolving, but in 2025, the latest wave of new entrepreneurs is navigating a particularly tough landscape with a mix of optimism and resilience. The latest report from Constant Contact, Small Business Now: Growth in Motion, reveals insights from over 1,600 small business owners across the US, UK, Australia, New Zealand, and Canada. Despite dealing with economic uncertainty, these early-stage businesses are not just surviving—they’re setting themselves up for success by embracing technology, refining marketing strategies, and focusing on building lasting customer relationships.
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Thriving Through Tough Times
It’s no secret that the economic climate right now is anything but easy. With external challenges like inflation and shifting consumer habits, it’s a tough world for any business owner. Yet, new entrepreneurs aren’t backing down. Instead, they’re diving headfirst into the challenge, and their focus is clear: Customer relationships.
According to the report, 63% of new entrepreneurs are turning to social media as their go-to marketing tool. But, here’s the interesting part: Even though social media is a top choice when getting started, a surprising 33% of these business owners today see email marketing as an untapped goldmine for conversions and customer loyalty. As these businesses mature, they’re broadening their marketing with channels like email and SMS, which are coming up strong as powerful tools to nurture those all-important customer relationships.
And, when it comes to tech, the numbers speak for themselves: 91% of business owners say that technology has played a crucial role in their success, and a whopping 72% plan to use AI for marketing this year. Technology isn’t just a nice-to-have; it’s a survival tool for small businesses—one that’s essential for growth.
Optimistic, But Realistic: The SMB Mindset for 2025
Entrepreneurs are feeling positive but cautious. Nearly half (45%) of small business owners believe their business will grow in the coming year, but many (55%) are also acknowledging the hurdles they’ll face. Rising costs, customer acquisition struggles, and shifting consumer preferences have a solid 35% of entrepreneurs seeing economic factors as a big potential roadblock. But, not to worry—small businesses are determined and resilient.
And, people are still choosing to start new businesses every day. Even though 52% of these business owners admitted that getting their business off the ground was tough, there’s a ton of excitement and pride in the air. A remarkable 95% of entrepreneurs said they’d do it all over again if given the chance—71% said they’re excited about the future, and 57% proud of what they’ve accomplished.
Going Beyond Social Media: SMBs Expand Their Marketing Reach
Social media may dominate the marketing space for new businesses, but there’s a growing trend toward diversifying strategies. The majority of these entrepreneurs may still rely on social media as their main marketing tool, but many are branching out into channels like email and SMS to connect with their audience.
In fact, 33% of SMB owners view email marketing as an underutilized tool that could be key to turning leads into loyal customers. While social media gets all the attention—likely for its ease of use, accessibility, and affordability—email marketing can be a powerful revenue driver to support growth. Plus, email’s secret superpower is its ability to help build lasting relationships and customer loyalty. And, don’t forget SMS! Only 15% of SMBs are investing in it, even though SMS has proven to be one of the most engaging marketing channels available.
AI and Tech: The Secret Weapons for SMB Growth
Let’s talk tech—it’s a game-changer for small businesses. Early-stage small businesses are embracing technology like never before, with 91% agreeing that tech has been a growth driver for their businesses. And, AI is also leading the charge… Nearly two-thirds (72%) of SMB owners plan to use AI in their marketing efforts this year, and the areas they’re focusing on are pretty exciting.
- 37% are using AI for content creation
- 32% are diving into customer data analysis
- 31% are leveraging AI to create personalized marketing experiences.
This isn’t just about automating tasks—it’s about making smarter, more data-driven decisions and connecting with customers in more meaningful ways. With this, 38% of business owners are planning to learn new marketing strategies, and over a quarter (28%) will use AI and automation to overcome challenges like customer acquisition and sales growth.
It’s clear that technology is becoming a key part of their competitive advantage, growth prospects, and overall success. Consider this: New small business owners who have the most confidence in their business growth this year are embracing AI more than others—indicating that confidence in business growth and the adoption of AI are closely linked. Of this high-confidence group, 41% plan to use AI for data analysis, and 39% will use it to personalize customer experiences, compared to just 25% of all others.
Looking Ahead: Innovating for Success in 2025
As these new and early-stage entrepreneurs continue into this year, their direction is clear: Reassess and refine strategies, embrace new technologies, and stay customer-centric and highly adaptable. By focusing on these areas, new small businesses are setting themselves up for long-term success—even in the face of an unpredictable market.
If you’re a small business owner yourself, the message is simple: Stay adaptable, keep innovating, and never stop connecting with your customers. The entrepreneurs who thrive in 2025 will be those who stick to sound business fundamentals, keep refining their marketing approach, and embrace new tools and technologies to stay ahead.
