However, the index remains below the 69.5 recorded a year ago, underscoring ongoing economic caution. While concern over inflation has dropped to 48 per cent—marking the first time it has fallen below 50 per cent since Q2 2022—70 per cent of small businesses still report inflation has significantly affected operations, and 60 per cent have increased prices in the past year, the US Chamber of Commerce said in a press release.
Workforce-related concerns are growing, with 16 per cent citing employee retention as their top issue, up from 11 per cent last quarter.
The MetLife & US Chamber of Commerce Small Business Index rose to 65.2 in Q2 2025, reflecting improved confidence in business health and cash flow.
Inflation concerns eased, yet operational impacts persist. Staffing plans are up, but revenue expectations have softened.
Supply chain issues, compliance burdens, and benefit complexities remain key challenges.
Supply chain disruptions also persist, with 47 per cent of businesses having altered their supply chains in the past six months and 30 per cent unable to meet customer demand. The burden of licensing and compliance is also rising, with 40 per cent of small businesses spending more time on government requirements.
“Small businesses are cautiously navigating a complex economic landscape. 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,” said Tom Sullivan, senior vice president of small business policy at the US Chamber of Commerce.
Expectations for future growth are mixed. While 42 per cent plan to increase staffing—up from 37 per cent last quarter—only 65 per cent expect revenue growth over the next year, down from 73 per cent in Q2 2024.
“We are managing these headwinds through tight cost controls, vendor renegotiations, and strategic investments in automation and distribution. These adjustments have improved profitability, even amid an unprecedented decline in demand,” said small business owner Colton McCurley.
This quarter’s survey also highlighted challenges in offering employee benefits. Although 93 per cent believe benefits are vital for employee wellbeing and retention, 66 per cent find selecting benefits difficult, and 67 per cent wish they had external guidance. Health insurance remains the most commonly offered benefit but rising costs and budget constraints remain barriers.
Businesses in the services sector and those owned by baby boomers report lower confidence in both national and local economic conditions. Gen-Z and Millennial owners are more optimistic, added the release.
“Today’s small business owners are navigating a complex benefits landscape that’s only grown more challenging in recent years. It’s no surprise that an increasing number, two in three, say they wish they had outside help,” said Bradd Chignoli, executive vice president and head of Regional Business and Workforce Engagement at Metlife. “Partners such as benefits brokers and insurers are excellent resources to meet this challenge. By working with knowledgeable experts, small business owners can focus on their top priority: growing their business.”
Fibre2Fashion News Desk (SG)