Despite rising costs, tariff tensions, and recession fears, America’s small businesses aren’t slowing down.  According to Chase’s mid-year Small Business Leaders Outlook Pulse survey, industries like construction, health and medical services, and hospitality are pushing past uncertainty — expanding, adapting, and showing signs of strength across the economy.

The survey findings reveal that the pressures are real – but so is small business resolve. Despite inflation, tariffs, and rising taxes being top concerns, SBOs are confidently strategizing to mitigate these impacts. Over half expect tariffs to hurt their business, yet most are crafting plans to counteract these challenges. Businesses are cutting expenses and raising prices in response to inflation, but they are charging "full speed ahead" with their plans, viewing high shipping and energy costs as temporary hurdles.

“Small businesses are navigating a challenging economic landscape with impressive adaptability,” said Liz Wilke, Chief Economist of Business Intelligence, Chase. “While concerns about inflation, tariffs, and higher costs remain, our latest survey shows that many are finding ways to turn those pressures into opportunities—whether by investing in AI or putting more cash to the side. That kind of resilience isn’t just good for their bottom line—it’s critical for the overall health of the economy."

By revealing both shared hurdles and unique industry dynamics, the survey highlights where businesses – particularly in sectors like construction, manufacturing, health and medical services, retail, and hospitality and restaurants – are focusing their efforts. The insights offer an industry-specific window into how small business owners are balancing resilience with realism.

Recession fears loom with inflation and tariffs top of mind, particularly in construction, retail, and manufacturing. Yet, few plan to tap the brakes on their current strategies.

• Over half of health and medical services and hospitality leaders are hitting the accelerator and planning to grow, full speed ahead.

• 25% of retail leaders are scaling back on current operations, the highest among the five industries.

In response to these concerns, retail, construction, and hospitality leaders are reducing non-essential expenses, as those in other industries prioritize different approaches.

• Manufacturing SBOs are building cash reserves and negotiating rates with suppliers.

• Health and medical services providers are focusing on building a customer retention strategy.

AI is the name of the game as most SBOs are identifying new ways to use or expand it, while construction stays cautious.

• More than half of leaders in health and medical services are expanding their use of AI; in contrast, half of leaders in construction are either just beginning to experiment with it or considering its use.

• 72% of hospitality and restaurant leaders are leveraging AI to analyze customer data.

The Chase 2025 Midyear Business Leaders Outlook Pulse surveyed 563 small business owners in June 2025. Conducted annually since 2016, the survey aims to understand the current and future outlook of businesses, industries and the economy. It also seeks to uncover top concerns and anticipated behaviors for the remainder of the year, as well as to better understand current challenges in the workplace, staffing, government policies and technology needs.