A recent survey of over 1,000 small business decision-makers found that 91% of business owners are confident in their ability to grow. Younger entrepreneurs are at the forefront, investing in technology and digital strategies. The results show how small businesses across the U.S. are using technology, artificial intelligence, and social media to expand and stay competitive in 2025. As businesses move forward into the year, 91% remain optimistic about growth, and 92% feel prepared for the challenges ahead.
This confidence builds on the resilience shown in 2024, with 73% of respondents feeling more positive about their business prospects than before. The majority expect financial stability (90%) and believe they can adjust to changing customer needs (89%). “Small businesses have always been adaptable and innovative,” said Anna Marrs, group president of global commercial services at American Express.
“In 2025, they are making bigger investments in technology and strategy to strengthen their future.”
Millennial and Gen Z small business owners are shaping the future by focusing on technology and social media. Compared to Gen-X and Baby Boomer owners, younger entrepreneurs are more likely to increase spending on financial platforms (52% vs. 39%) and digital tools to attract new customers (51% vs. 45%). Social media plays a major role in their business plans, with 71% hoping their business will go viral and 74% finding inspiration from social platforms. They are also more likely to adjust business strategies based on social media trends (67% vs. 48%).
Young Entrepreneurs Adopting AI for Growth
Key priorities for Millennial and Gen Z business owners in 2025 include hiring more employees (32% vs. 22% for Gen-X and Baby Boomers), launching new products or services (26% vs. 21%), and expanding physical locations (25% vs. 18%).
The survey also found that businesses using artificial intelligence (AI) are growing faster and gaining a competitive advantage. Among businesses that use AI, 50% expect to expand their workforce, compared to just 36% of those that do not use AI. Companies leveraging AI are also more likely to upgrade their technology (38% vs. 22%), increase their market presence (30% vs. 20%), and introduce new products or services (29% vs. 16%).
More Millennial and Gen Z business owners are incorporating AI into their operations (68% vs. 45% for Gen-X and Baby Boomers) and plan to increase their AI investments in 2025 (46% vs. 36%).