In today’s rapidly shifting economic landscape, small business owners across key markets are showing remarkable resilience. A recent Chase survey reveals that despite ongoing uncertainties, these entrepreneurs are strategically investing in their operations to not only survive but to thrive in the face of challenges.
According to the survey conducted on May 5, 2025, amidst economic pressures such as inflation, hiring shortages, and tariffs, nearly half of U.S. small business owners have altered their business strategies significantly. The survey highlights that small business sentiment remains below the highs witnessed post-election, yet a spirit of adaptability and innovation is evident among many leaders in this sector.
In-depth analyses across various cities—including Boston, Chicago, Houston, San Diego, Seattle, and Tampa—indicate that 41% of small businesses nationwide consider themselves in “growth mode.” These businesses are not only actively increasing sales but are also expanding into new locations and looking to hire additional staff, which signifies a proactive approach to uncertain market conditions.
A key observation from the survey is the increased focus on technology integration. Businesses are prioritizing digital solutions like payments systems and payroll software. This technological investment is not merely a response to consumer demands but is viewed as essential for enhancing operational efficiency. The cities of Chicago, Seattle, and Houston showcase particularly high growth mode percentages at 70%, 58%, and 56%, respectively.
Ben Walter, CEO of Chase for Business, emphasizes the importance of adaptability. “Market conditions and overall optimism will always fluctuate, but what matters is how businesses respond and adapt to the moment,” he notes. This perspective highlights a fundamental trait of small business leaders: their inherent resilience and forward-thinking nature. They consistently seek new tools and employ innovative strategies to navigate tough times.
The survey reveals notable trends among small business owners in specific metropolitan areas, indicating they are more likely to engage in local buying practices and incorporate AI tools into their operations. In fact, they are 1.4 times more inclined to embrace local purchases and 1.3 times more likely to focus on employee retention compared to the national averages. This shift underscores a commitment to integrating cutting-edge technology while maintaining a community-oriented approach.
Interestingly, 18% of small businesses in these targeted metro areas are either increasing their cash reserves or planning to do so in the short term. San Diego and Boston lead this trend, with 24% and 20% of small business owners, respectively, prioritizing maintaining extra cash on hand. Additionally, 27% are actively working to pay down existing debts, showcasing prudent financial management; the figures rise to 32% in Boston and 30% in Chicago.
Technology adoption is another striking trend; around 40% of small businesses in Boston and San Diego have integrated AI tools into their operations. This trend is followed closely by Tampa and Seattle, with 38% and 34% respectively. Significantly, these businesses report that digital transformation has been vital for their success in a post-pandemic environment, showcasing how technology can serve as a lifeline in tumultuous times.
Moreover, a resounding 71% of businesses in these thriving markets are reporting rising revenues, surpassing the national average of 54%. Specifically, a remarkable 78% of respondents from Boston have noted better-than-expected results, with Chicago (76%) and Houston (70%) not far behind. This trend illustrates that strategic investments during challenging periods can yield fruitful outcomes.
The survey encompassed approximately 500 small business owners nationwide, with an additional 300 from specific, selected metro markets. The chosen cities were selected based on their dynamic business environments and cultures of innovation, signaling a deeper understanding of entrepreneurship that is essential in today’s economic climate.
Chase, a leader in consumer and commercial banking, continues to support small businesses through innovative financial solutions, aiming to empower these entrepreneurs as they navigate their diverse challenges and opportunities in an ever-evolving marketplace.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250505437821/en/
Contacts
Elizabeth Seymour
elizabeth.c.seymour@jpmorgan.com
Chaffon Davis
Chaffon.davis@chase.com
