Small businesses are the backbone of the global economy, but the landscape is rapidly evolving. Constant Contact’s latest Small Business Now report, based on insights from 1,600 small businesses across the U.S., U.K., Australia, and Canada, highlights how new entrepreneurs are adapting. The findings show a strong reliance on social media, growing interest in AI-driven marketing, and an optimistic yet realistic approach to economic challenges in 2025.

Findings from the Report

1. Optimism and Resilience Amid Economic Uncertainty

Despite economic headwinds, new SMBs remain confident about growth but acknowledge key challenges.

• 45% of new business owners feel very confident in their growth potential for 2025.
• 35% believe economic conditions will significantly impact their success.
• 52% identify customer acquisition as their biggest marketing challenge, followed by customer retention (28%) and learning new marketing technologies (27%).
• 95% of entrepreneurs say they would start their business again, with 71% feeling excited and 57% feeling proud to be small business owners.

2. Social-First Marketing, But a Push for Diversification

Social media dominates SMB marketing strategies, but many are now exploring other channels.

• 63% of SMBs rely on social media as their primary marketing channel.
• 54% plan to continue prioritizing social media in 2025.
• 33% see email marketing as an underutilized tool for converting leads and building long-term customer relationships.
• Only 15% leverage SMS marketing, despite its high engagement rates.

3. AI and Technology as Growth Drivers

New entrepreneurs increasingly turn to AI for marketing automation, personalization, and data analysis.

• 91% of new SMBs say technology has been essential to their business growth.
• 72% plan to integrate AI into their marketing strategies in 2025.
• 41% of the most confident SMB owners already use AI to analyze customer data.
• Top AI marketing use cases include:
  • Content creation & brainstorming (37%)
  • Customer data analysis (32%)
  • Personalized messaging (31%)
• 38% of SMBs plan to learn new marketing strategies and tools, while 28% will use AI/automation to overcome business challenges.

The 2025 small business landscape is defined by resilience, adaptability, and a tech-forward mindset. While social media remains the dominant marketing channel, SMBs recognize the importance of diversifying their strategies, embracing email and SMS marketing, and leveraging AI for efficiency and personalization. Constant Contact’s findings highlight that new entrepreneurs are not just surviving but actively redefining success in a changing economic environment.