CHICAGO, Nov. 17, 2025 /PRNewswire/ -- Main Street America's Fall 2025 Small Business Survey reveals that overall small-business confidence is at its second-lowest level since tracking began.
"Small businesses with fewer than 25 employees make up 98% of all American businesses," said Erin Barnes, president and CEO of Main Street America. "This survey shows that many of these businesses, particularly the smallest, are confronting real challenges."
- Main Street business confidence remains near its all-time low, especially among the smallest businesses. Main Street Business owner confidence ticked up three-tenths of a point since Main Street America's Spring 2025 survey, but the data reflects the second-lowest average rating over the course of seven biannual surveys. Businesses with fewer than three full-time employees reported an average confidence rating of 6.8 out of 10.
- Faced with revenue and profit challenges, Main Street businesses are approaching the holidays with anxieties about sales. Over the past three months, 38% of businesses reported a decline in revenue. 45% saw a drop in net profit.
- Broad social and economic trends are rattling Main Street business operations. Many respondents indicated that overlapping concerns, including the federal government shutdown, tariffs, inflation, and shifting consumer spending patterns, have weighed heavily on confidence levels and operational decisions.
"With tariffs, all of my international customers have completely dropped off," said Courtney Schur, owner of Carmine and Hayworth Vintage, a small clothing store in Fargo, North Dakota. "We're going into the holidays with the least amount of inventory we've had, but trying to be as conservative as we can, working with really thinned out margins right now."
The survey of 1,295 small-business owners highlights the vulnerability of the vital Main Street businesses that are often overlooked and underrepresented in traditional small-business reporting: 72% of respondents employ fewer than three full-time staff, and more than half operate with annual revenues under $200,000. Main Street businesses also play a substantial part in local economies; 70% contribute to local causes, 63% hire locally, and 56% use local vendors.
Together, the findings point to a challenging landscape for Main Street Businesses entering a pivotal time of year.
"During the holiday season, when many small businesses earn up to 40% of their annual revenue, we can all make a difference by shopping small and shopping locally," said Erin Barnes.
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The Fall 2025 Small Business Survey was conducted online between October 9 and October 30 and collected responses across 48 states, Washington, D.C., and Puerto Rico. Respondents represent a wide range of sectors, including retail, food and beverage, professional services, personal services, and arts and entertainment. The survey is designed to assess overall business sentiment, operational challenges, and emerging economic trends among Main Street businesses.
ABOUT MAIN STREET AMERICA SMALL BUSINESS SUPPORT
According to survey data, business owners who maintain close ties to their local Main Street programs report higher confidence overall, reinforcing Main Street America's commitment to small-business vitality. Through its network of more than 1,200 programs, Main Street America provides critical support for these entrepreneurs, including grant opportunities, technical assistance, and data-driven insights.
ABOUT MAIN STREET AMERICA
Main Street America leads a movement committed to strengthening communities through preservation-based economic development in older and historic downtowns and neighborhood commercial districts. For more than 40 years, Main Street America has provided a practical, adaptable, and impactful framework for community-driven, comprehensive revitalization through the Main Street Approach™. Our network of more than 1,200 neighborhoods and communities, rural and urban, shares both a commitment to place and to building stronger communities through preservation-based economic development. For more information, visit mainstreet.org.
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