Detroit City Wire

Small business owners remain optimistic about their financial outlook in 2025, with 69% expressing positivity. Despite this optimism, concerns over inflation are causing many to pause expansion plans. According to a survey by Goldman Sachs 10,000 Small Business Voices, 54% of small businesses believe the Trump Administration should prioritize addressing inflation.

Employment trends show mixed signals. While 46% of small businesses plan to add jobs this year, the National Federation of Independent Business (NFIB) reports that 38% had job openings they could not fill in February, an increase from January. Additionally, only 15% of business owners plan to create new jobs in the next three months, a decline from previous figures.

The regulatory environment is also seen as a hindrance, with 57% of small business owners feeling held back by red tape. Tax code simplification is desired by 60%, and there is significant concern over the potential expiration of a crucial tax deduction at the end of 2025.

In terms of wages, stability appears to be the current trend. February saw no change in the percentage of businesses raising wages compared to January. However, fewer businesses plan on increasing compensation in the coming months.

Sales growth has slowed considerably. The Fiserv Small Business Index noted only a slight increase in sales from January to February.

Overall, while there is some optimism among small business owners regarding finances and potential hiring increases, economic uncertainties and regulatory challenges continue to influence decision-making processes.