Optimism among small businesses escalates as the monumental legislation, known as the One Big Beautiful Bill, commences application
Small business owners in the United States are feeling more optimistic about the economy, according to the latest Small Business Survey conducted by CNBC. The survey, carried out under President Donald J. Trump's administration, shows a notable rise in confidence, with 46% of entrepreneurs rating the economy as "excellent" or "good," a significant increase from 30% in the previous quarter.
This surge in optimism is attributed to several key factors. For instance, nearly one-third of small businesses reported customer demand and sales exceeding their forecasts for the first half of 2025, with 12.4% experiencing results much higher than anticipated. Overall, 84.8% indicated their business activity was at or above expectations.
The improved hiring outlook is another significant factor. One in three small business owners plans to increase hiring in the third quarter across various roles, and 77% found recruiting workers "somewhat" or "extremely" easy, reversing earlier staffing challenges.
Reduced concerns about tariffs and regulation also play a crucial role. Fewer small businesses expect negative impacts from tariffs, government regulations, tax policy, and trade policy, contributing to a more positive business climate.
The enactment of the "One Big Beautiful Bill" and President Trump's policies are credited with boosting small business sentiment and confidence in economic conditions. Approval of Trump's job performance among small business owners has increased across political lines, with Democrats showing the largest rise in optimism.
Moreover, the adoption of new technologies, such as artificial intelligence (AI), by over 75% of small businesses, suggests a growing sense of empowerment through innovation. This may also fuel confidence by improving competitiveness and operational efficiency.
The Small Business Survey results indicate a positive trend in the economic outlook for small businesses. More than half of small business owners expect revenue to increase over the next year, an increase of 10% from last quarter. Confidence in President Trump has spiked, with nearly six-in-ten small business owners approving of his job performance.
Sam Gutierrez of SurveyMonkey observed that small business owners who identify as Democrats report the largest increase in sentiment. They are much more optimistic about business conditions compared with the previous quarter. More small business owners describe their business conditions as "good."
In summary, small business optimism in mid-2025 is bolstered by better-than-expected financial results, easier hiring, diminished regulatory concerns, supportive policy developments, and technological adoption, all contributing to a more favorable outlook despite broader economic uncertainties. The landmark One Big Beautiful Bill and President Trump's policies are delivering results, according to the Small Business Survey, suggesting a renewed sense of economic optimism among small business owners.
- The Small Business Survey findings show a rise in small business confidence under President Trump's administration, with more entrepreneurs viewing the economy as excellent or good.
- Factors contributing to this increased optimism include better-than-expected financial results, a more positive hiring outlook, reduced concerns about tariffs and regulations, and the adoption of new technologies like AI.
- This optimistic trend among small-business owners is tied to the enactment of the "One Big Beautiful Bill" and President Trump's policies, along with a decrease in concerns about policy-and-legislation and politics.
