What are the leading small business trends of 2025? This Small Business Week, we’re covering some of the top concerns—and opportunities—facing small business owners today. From dealing with talent crunches to embracing artificial intelligence, small businesses are using smart strategies to stay relevant in an evolving world.
To learn how companies are adapting to this changing landscape, BILL partnered with SMB Group to survey 750 finance leaders at small-to-midsize US businesses (SMB) with 10 to 500 employees, polling their insights on the economy, workforce, and finance automation technologies.
Based on the survey results, we’ve identified 5 small business trends that are affecting small-to-midsize businesses across major industries. To see more survey results, including strategies and future insights for SMBs, download the full The BILL 2025 State of Financial Automation Report.
New survey results highlight 5 small business trends of 2025
No two small businesses are the same—but they face a lot of the same challenges, and they’re all looking for solutions. Check out these five trends to see what smart business owners are doing to stay on top.
Small business trend #1: Using AI is a significant benefit for SMBs
The integration of Artificial Intelligence (AI) with automation is revolutionizing financial software, allowing for greater accuracy and efficiency. These technologies are empowering businesses to streamline operations, make more informed decisions, and enhance productivity.
SMBs see AI as beneficial for both strategic planning and day-to-day financial operations, with 85% of finance leaders saying they are very or somewhat enthusiastic about using AI. The impact of AI is significant and increasing: the majority of SMB (73%) say AI is already impacting their business and (83)% believe it will have a greater impact over the next two years.
Sarah Sanders, Vice President of Accounting at Repurpose, finds BILL’s AI capabilities incredibly useful—in fact, it saves the finance team two days out of every work week. “The AI pulls all the information for you and it makes it so much easier,” says Sanders. “You just review. It's easier to cross reference than to actually key everything in.”
Small business trend #2: Remote work is dropping, but hybrid is holding steady
The latest trends suggest a continued push toward structured hybrid or in-office work models while still maintaining flexibility for some remote work.
According to the survey, the percentage of remote-only workers dropped from 24% in 2024 to 19% in 2025, signifying a shift back to on-site or hybrid arrangements after a slight increase from 22% in 2023.
Those working exclusively on-site jumped from 42% in 2024 to 55% in 2025, while the percentage of hybrid workers has remained fairly stable from 2023 to 2025, at about one-quarter of the workforce. This suggests companies continue to see value in flexible work arrangements, even though full-time remote work may be declining.
See how Vermont Flannel uses BILL to manage financial operations in a hybrid work environment. And check out BetterRX, which has been fully remote for years thanks in part to BILL. According to Randi Letendre, CFO of BetterRX: “Having BILL—which lets our people work from literally all over the world, accessing the platform anywhere, from phones and other devices—is fabulous.”
Small business trend #3: Retention issues are still prevalent, but easing
Problems continue to challenge SMBs in finding and keeping finance professionals without letting them burn out. However, the situation has improved compared to 2024.
In 2025, 58% of respondents still strongly agreed or agreed that it's difficult to attract qualified staff, but that number is much lower than the 77% reported in 2024.
Similarly, only 40% noted they have trouble retaining staff compared to 69% in 2024. And 60% now agreed or strongly agreed that it's difficult to find talent due to limited availability, compared to a massive 81% in 2024. Finally, perhaps reflecting the growing role of AI in the industry, 44% indicated that finance people work too many hours, down from 68% in 2024.
In order to hire experienced candidates, businesses must offer competitive salaries—but many SMBs find it tough to match the salaries offered by larger companies. However, SMBs can leverage the advantages of flexible work arrangements and financial automation tools as strategies to attract and retain talent more successfully.
One great way to retain talent is by giving them more interesting work to do—that’s exactly what JFS Wealth Advisors did when they automated their AP with BILL. “It's a 70% time savings that helps us attract and retain talent,” Laura Blaire, COO, CCO and Managing Partner explains, “as well as better leverage our existing staff and give them more challenging assignments.”
Small business trend #4: Most SMBs feel prepared to weather inflation
SMBs face a complex array of macro challenges that extend beyond the immediate confines of their businesses. They cited inflation as their top macro challenge for 2025, followed by recession fears and cybersecurity threats. In fact, the percentage of respondents indicating inflation as a top concern spiked from 47% in 2024 to 62% in 2025.
With financial professionals’ chief focus for 2025 on managing their businesses in an inflationary environment, most SMBs have already taken multiple steps to address inflationary pressures and better manage cash flow, and are planning to test new tactics in 2025.
Despite these macro and operational challenges, 92% of respondents indicated that they are very or somewhat prepared to weather these challenges, and two-thirds said they expect revenues to grow in 2025.
Small business trend #5: SMBs are looking to finance automation to address current pain points
Ongoing challenges and shifts in strategic responsibilities are accelerating SMB interest in—and adoption of—finance automation solutions.
Respondents clearly understand the increasingly vital roles that technology and automation play in improving financial management efficiency and providing insights to make better business decisions. For example, BILL’s integrated financial operations platform leverages automation for functions like invoice extraction and bill creation, duplicate invoice detection, and expense management automation.
83% of SMBs agree that automation is key to improving business efficiency. 79% also feel that automated financial operations can help provide the insights needed to improve decision-making. And 81% believe that modern, automated financial tools aid in employee attraction and retention.
How are companies responding to the small business trends of 2025?
The BILL 2025 State of Financial Automation market survey, conducted by SMB Group, examines trends in SMB financial management automation in detail.
The full report discusses key trends and challenges that SMB financial professionals are facing and how they are impacting their businesses and financial management practices. It also explains how SMBs are automating financial functions today and their plans for the future.
To see these results, download the complete The BILL 2025 State of Financial Automation Report.
Small Business Week FAQ
What is Small Business Week?
In 2025, Small Business Week is celebrated from May 4—10. It recognizes the hard work and dedication of entrepreneurs across the United States. The Small Business Association has many activities this week, including an educational virtual summit.
When did Small Business Week start?
President John F. Kennedy began the annual celebration in 1963. Though a lot has changed in the last 60+ years, small businesses are just as important now as when the tradition started.
Why do we celebrate Small Business Week?
We use this week as an opportunity to celebrate the ingenuity and essential work of small business owners—including their contributions to the economy. It’s also a great reason to tell those who work at small businesses how much we appreciate them!
What is the importance of Small Business Week?
Small business week is important for several reasons:
- Support—Consumers, policymakers, and other businesses (like BILL!) get a chance to show their support for small businesses.
- Recognition—Small businesses are a big part of economic growth and job creation in their communities. And we’re recognizing that right now—because of Small Business Week!
Educational opportunities—Some organizations, such as the Small Business Association, use this week as an opportunity to host educational events.
