
In the second quarter of 2025, the MetLife & U.S. Chamber of Commerce Small Business Index (SBI) saw a modest rise to 65.2, up from 62.3 in the previous quarter. According to the report, this increase indicates a cautious return of confidence among small businesses, particularly in areas like business health and cash flow.
Notably, inflation concerns, while slightly abated—down to 48% in Q2 from 58% in Q1—continue to weigh heavily on operations, with 70% of businesses reporting significant impacts and 60% having raised prices in response. Regulatory burdens also grew, as 40% of businesses spent more time on government compliance tasks.

“Small businesses are cautiously navigating a complex economic landscape,” said U.S. Chamber of Commerce Senior Vice President of Small Business Policy Tom Sullivan in the report. “While they are confident in their business operations—especially at the local level—when it comes to long term planning there is some hesitation as inflation concerns linger, and new trade policies create economic uncertainty.”
Several indicators point to increasing unease. Nearly half of surveyed businesses have made changes to their supply chains, with 30% unable to meet customer demand due to disruptions. Workforce challenges are also rising, as concerns over employee retention jumped to 16%, and supply chain issues climbed to 17%. There is a notable generational divide in outlook: Baby Boomer and service-sector business owners are less confident in the economy compared to their Gen-Z and Millennial counterparts, who remain more optimistic about both national and local conditions.
The survey also highlighted continued struggles with providing employee benefits, an area seen as vital but increasingly difficult to manage. While 93% of business owners agree that benefits are essential for employee care and morale, and 70% offer at least one type of benefit—primarily health insurance and paid leave—many face financial and administrative barriers. Rising costs and limited budgets are the chief challenges, with only 11% reporting no obstacles. Bradd Chignoli of MetLife advocates for expert partnerships to ease this burden, emphasizing that external support can free up small business owners to focus on growth amid an increasingly complex benefits landscape.
You can read this and previous reports here.
[07.01.25]