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As we enter 2025, small business owners are finding a silver lining amidst challenges. The latest JPMorganChase’s 2025 Business Leaders Outlook Survey reveals a wave of optimism sweeping through the sector. More than 70% of small business owners express confidence, feeling “optimistic” or “very optimistic” about both their industry’s and their company’s performance in the coming year.
Notably, diverse business owners are showing greater optimism about the economic landscape at local, national, and global levels. Latino and Hispanic small business owners plan to rely more on all types of funding for their businesses compared to all business owners this year.
Here are five key findings from this year’s survey.
- Economic optimism grows each year…
More than half of Latino and Hispanic small business owners expressed optimism about the state of the local, national and global economy. Close to 80% had the same optimism about their industry’s performance or their own company’s performance.
- …but some concerns exist
While small businesses seem to have left the economic uncertainty of the pandemic years behind, diverse-owned businesses remain more cautious about the future. Interestingly, they are still more likely to anticipate a recession in 2025 compared to the broader business community. However, less than a third of diverse-owned businesses expect an economic downturn – among Latino and Hispanic-owned small businesses, 32% said “yes” to expectations of a recession in 2025. This cautious optimism reflects a nuanced perspective, balancing resilience with a watchful eye on potential economic shifts.
- Inflation is top concern, but cybersecurity challenges are growing
As inflation remains the top challenge for business owners going into 2025, Latino and Hispanic business owners are particularly attuned to the threat of cybersecurity, identifying it as their second-biggest challenge. This concern surpasses the “uncertainty of economic conditions,” which ranks second among the broader community. Across all groups, rising taxes emerge as the third most pressing issue. This highlights a distinct focus among diverse business owners on the importance of protecting their operations from any threats.
- Finding funding
Diverse-owned businesses are strategically positioning themselves to tap into a variety of funding sources more than small business overall. Latino and Hispanic-owned businesses, for instance, notably showed a preference for business credit cards (61%) and loans from traditional banks/credit unions (43%). A significant majority of Latino and Hispanic-owned businesses (76%) are also more likely than the overall business respondents (55%) to explore online lending this year.
- Ambitious hiring plans amid talent challenges
Diverse-owned businesses are setting ambitious hiring goals for 2025. Among Latino and Hispanic-owned businesses, 63% foresee an increase in full-time hires and 52% anticipated more part-time hires. This contrasts with 46% of all respondents expecting full-time hiring increases and just 38% planning for part-time hires.
However, these businesses face significant challenges in finding the right candidates. A vast majority (91%) of Latino and Hispanic-owned businesses express concerns around recruitment. Latino and Hispanic-owned businesses cite the challenge of opening new locations (34%).
This response is echoed across the board, with 79% of all respondents worried about finding suitable candidates.
The bottom line
Economic optimism is on the rise among diverse-owned small business owners, with Latino and Hispanic-owned small businesses having greater confidence in the local, national and global economic outlook than survey responses overall.
Despite some apprehensions about a potential recession and recruitment challenges, diverse-owned small businesses are determined to expand their workforce and secure funding to fuel growth. This determination underscores their optimism for 2025 and their readiness to make strategic moves to scale their operations.
For informational/educational purposes only: Views and strategies described in this article or provided via links may not be appropriate for everyone and are not intended as specific advice/recommendation for any business. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. The material is not intended to provide legal, tax, or financial advice or to indicate the availability or suitability of any JPMorgan Chase Bank, N.A. product or service. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. JPMorgan Chase & Co. and its affiliates are not responsible for, and do not provide or endorse third party products, services, or other content.
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