Top 9 Small Business Trends to Watch in 2025

Discover the key trends shaping the future of small businesses in 2025. Stay ahead of the curve with insights into the latest innovations and strategies that can give your business a competitive edge.

In recent years, the way entrepreneurs launch and manage small businesses has undergone dramatic transformation. If you’re feeling overwhelmed or uncertain about what lies ahead, you’re definitely not alone.

From unpredictable trade policies to powerful tech tools now available with a simple click, the business world is shifting fast. The skills, strategies, and best practices that worked just a few years ago may no longer apply in 2025’s evolving market.

As an online business owner, your most valuable asset is knowledge—both about how others are staying afloat and how consumer behavior is changing during these times. In this guide, we’ve highlighted nine major trends shaping small businesses right now, so you can stay ahead of the curve and turn change into opportunity.

1. Technology investments counteract economic pressure

There’s been a lot of talk around how small businesses weather the storm of the economy. Since the pandemic, the global economy has undergone tremendous changes—many of which have caused entrepreneurs to get creative in their approach to acquiring customers and remaining competitive.

Around two-thirds of merchants are concerned about the global economy, but in contrast, only 40% express concerns about technological advancements.

Widestream adoption of artificial intelligence (AI) tools like ChatGPT have made the technology more accessible to small businesses with small budgets. Per one report, 72% of all businesses currently use artificial intelligence (AI), up from just 20% in 2017.

Popular AI use cases for small business include:

Automating routine tasks, such as reordering inventory or printing shipping labels

Using machine learning to digest large datasets—such as market trends, consumer behavior, and regulatory changes—to decide product pricing

Detecting fraud and flagging suspicious transactions before you fulfill them

Even entrepreneurs who’ve previously sat on the AI fence are leaning into it—including Mimi Nguyen, founder of Cafely, who says, “I’ve always been iffy at using AI since I’m a strong proponent for that human touch, but as we continue to use it for customer service, product recommendations and even a bit of content creation, there’s little doubt it’s changed the game for us.

“Cutting response time in half and boosting conversions by making campaigns feel more personal— really there are so many benefits that we enjoy. I remember once testing an AI-generated email campaign that was curated by our team—open rates jumped by 18% because the tone felt so spot on and human.”

2. AI-Driven Content Is Booming—and Customers Are Onboard

Artificial intelligence is playing a bigger role than ever in how small businesses create content. In fact, experts suggest that nearly 90% of online content could be AI-generated by the end of this year.

And it’s not just businesses embracing AI—customers are becoming more comfortable with it too. While most shoppers once preferred human interaction, today many welcome AI support if it enhances their experience. In fact, 32% say AI makes shopping easier, and 31% appreciate that it helps them save money.

3. Social Media Is Now a Sales Channel—Not Just for Building Followers

Social media has become an essential part of small business marketing—and for good reason. With around 64% of people worldwide using social platforms, and the average user spending over two hours daily on apps like Instagram, TikTok, and Facebook, the opportunities are massive.

Traditionally, social media was seen mainly as a way to grow your audience and build brand awareness—selling too directly was thought to be a turn-off. But that mindset is shifting fast.

According to Shopify, 62% of businesses now prioritize social media for direct sales, making it the top marketing trend. Influencer and creator partnerships follow closely at 39%. Consumers—especially Gen Z and Millennials—are embracing this shift, with over one-third having bought something through a social platform in just the past few months.

Business owners are adapting, too. Many are blending product promotion with creative, engaging content. For example, Sam Speller, founder of Kenko Matcha, created an interactive tutorial series called “Matcha Mastery” to educate followers on brewing techniques and cultural traditions.

Sam shares, “Shoppers who take part in our Matcha Mastery tutorials are worth 73% more in lifetime value compared to regular customers. To tap into that, we shifted 40% of our ad spend from standard product ads to content that showcases the Japanese tea ceremony—and saw a 28% boost in conversions for our premium matcha line.”

4. Strategic Discounts Help Ease Price Sensitivity

Inflation remains one of the biggest concerns for small businesses today—outpacing worries about taxes, staffing, and government policies. Nearly 25% of entrepreneurs say rising costs are their number-one challenge.

While consumer confidence in the economy is starting to recover, price anxiety is still high. A McKinsey study found that 50% of shoppers worldwide cite inflation as their top concern, particularly among older demographics.

To counter this, many small businesses are turning to discounts and incentives to retain customers and attract new ones. Over half (53%) of shoppers say discounts build brand loyalty, especially during the holidays. Free shipping matters too—41% say it increases their loyalty—while nearly a third (29%) look for loyalty programs with real rewards.

Take Kloo, a beverage brand, as an example. Co-founder Claudia Snoh shared on Shopify Masters that pricing was a barrier for many early customers. In response, they cut the per-bottle price and added a unique subscription deal: discounts for buying seven bottles—an uncommon approach for direct-to-consumer brands.

They also eliminated shipping fees by increasing the minimum order size. This pricing strategy not only pleased customers but also improved profit margins and boosted conversion rates in the long term.

5. Sustainability Still Matters—But So Does Authenticity

Shoppers are continuing to prioritize eco-conscious products—but they’re also paying close attention to whether a brand's environmental claims are real. In the 2024 holiday season:

1. 28% chose products marketed as sustainable or eco-friendly
2. 22% shopped more mindfully
3. 13% specifically sought out environmentally responsible shipping or manufacturing

“Today’s buyers aren’t just interested in what a brand sells—they care about the values behind it,” says Mimi Nguyen of Cafely. Her brand’s climate initiatives and charitable partnerships have become major selling points, even more than expected.

However, consumers have also grown more critical of so-called "green" brands. Many now recognize and reject greenwashing—when companies exaggerate or falsely claim environmental efforts. Legal scrutiny around greenwashing is also rising, with more global cases reported each year, according to law firm DLA Piper.

The takeaway? Authenticity matters more than ever in sustainability messaging.

6. The Next Generation of Entrepreneurs Is Already Here

While many adults cite financial risk, time constraints, and self-doubt as barriers to starting a business, today’s youth aren’t waiting around. Gen Alpha—kids born after 2010—are growing up in a digital-first world, and they’re already launching businesses online.

This generation’s entrepreneurial spirit is strong:

1. 60% of young people want to be their own boss
2. 75% of teens are interested in starting a business
3. 13% of adult entrepreneurs began their ventures before turning 18

With access to mobile devices, social media, and digital marketplaces, younger generations are breaking traditional business barriers. They're proving that age is no obstacle when it comes to innovation and hustle.

Read more:

The 10/90 Rule: How Smart Planning Can Save You Time and Skyrocket Productivity

Where to Invest Your Money: A Complete Guide to Smart Investing by Stages

Wishup: The Smart Way to Hire a Virtual Assistant for Business

How to Get Rich From Scratch: A Step-by-Step Guide to Financial Success

DATABOX — Universal Platform for Business Analytics and Data Visualization