Detroit City Wire

America's small business owners are expressing optimism about the upcoming year, as highlighted by a recent survey conducted by Goldman Sachs 10,000 Small Businesses Voices. The survey indicates that these businesses are eager for federal government support to enhance their competitiveness, growth, and job creation.

The survey reveals that small businesses across the United States are planning expansion in 2025. However, they believe that increased sales could be achieved if Congress and the new administration prioritize tax reform, address inflation, improve workforce development, reduce regulatory burdens, and increase access to capital.

"Small business owners are optimistic, but that doesn’t mean we aren’t facing real challenges," states Jessica Johnson-Cope, president of Johnson Security Bureau Inc., based in the Bronx. She emphasizes the need for Washington to reconsider its support for small businesses to create economic opportunities.

Key findings from the survey include:

- Nearly 69 percent of small business owners have a positive financial outlook for 2025.

- Over three-quarters (78 percent) plan to grow this year; 46 percent expect to create new jobs.

- Among those hiring, 89 percent find it challenging to recruit qualified workers due to competition with larger companies on pay and benefits.

- More than half (53 percent) cannot afford loans at current interest rates; 88 percent suggest lower rates would benefit their businesses.

- Inflation is a top concern for 54 percent of respondents who want it addressed as a priority policy issue.

Additionally, more than half (60 percent) of respondents desire Congress to simplify the tax code due to confusing provisions and rules unsuitable for smaller operations. Overall, 73 percent view the federal tax code as unfavorable for small businesses.

"We’re not asking for special treatment; we’re asking for a tax system that doesn’t trip us up," says Johnson-Cope.

Many small businesses cite regulatory red tape and outdated federal programs as barriers. Fifty-seven percent feel hindered by compliance issues while 95 percent call for federal programs that better reflect their realities.

With new leadership at the U.S. Small Business Administration (SBA), there is an opportunity for reform. Nearly nine in ten (89 percent) urge modernization within the agency with calls for greater access to capital (50percent), reduced regulatory burden (47percent), improved workforce development support (34percent), modernized communication systems (34percent), and increased procurement goals (32percent).

Innovation remains crucial; 80 percent of AI-utilizing business owners report increased efficiency and productivity. Yet, 44 percent lack resources or expertise needed for successful deployment while 76 percent advocate government policies aiding technology adoption like AI.

"Small business owners aren’t just watching; they want a seat at the table as Washington tackles big issues in 2025," remarks Jill McCarthy from Goldman Sachs 10,000 Small Businesses Voices. "Their message is simple: Listen to us. Work with us. Let’s get this right."

The survey involved participation from 1,188 Goldman Sachs 10,000 Small Businesses members across various U.S. states and territories between February 10-17th this year conducted by Babson College alongside David Binder Research.

Goldman Sachs 10,000 Small Businesses Voices builds upon existing initiatives advocating relevant policies through organized program participant efforts seeking further information via gs.com/10ksb-voices.