Economic Sentiment Surges Among Entrepreneurs in 2025
Growing Support from Small Business, President Donald Trump is gaining renewed support from America’s small business community, including a surprising boost among Democratic business owners. Following months of economic turbulence sparked by new tariffs, the latest CNBC|SurveyMonkey Small Business Survey shows a strong uptick in confidence.
Small business sentiment, which had slumped earlier this year, has now rebounded. Nearly half of all small business owners—46%—now describe the economy as “excellent” or “good.” That’s a sharp jump from just 30% in the second quarter of 2025.
Democrats’ Economic Outlook Improves Sharply
The shift in optimism is not limited to conservatives. Among small business owners who identify as Democrats, 24% now rate the economy positively. This is triple the number from Q2, when only 8% of Democrat business owners gave a positive rating.
Republicans also became more bullish. Sixty-seven percent now describe the economy as excellent or good, up from 52% the previous quarter. Meanwhile, Independents held steady at 47%, a small increase from 45%.
According to Sam Gutierrez, Senior Research Scientist at SurveyMonkey, “Small business owners who identify as Democrats report the largest increase in sentiment. They are far more optimistic about business conditions than they were just a few months ago.”
Confidence in Trump’s Leadership Grows
Business owners are increasingly confident in President Trump’s handling of the economy. The percentage of respondents who approve of his overall job performance climbed from 48% in Q2 to 57% in Q3. The partisan divide remains sharp—90% of Republicans approve of Trump, compared to just 18% of Democrats.
Nonetheless, the data show growing trust in Trump’s economic leadership. More small businesses are showing faith in his policies, particularly as tariff concerns decline.
Business Confidence Metrics on the Rise
Every major economic indicator in the survey improved. Forty-four percent of small business owners say current conditions are good—up from 36%. More than half (51%) expect sales to grow in the next 12 months, up from 41% in Q2. Hiring plans are also up: 28% plan to expand headcount, compared to 22% previously.
These numbers suggest that small businesses are responding positively to Trump’s economic strategies, especially as clarity returns after a rocky spring.
AI Usage Rises, Especially Among Younger Business Owners
An interesting trend emerging from the data is the rise in AI adoption among younger entrepreneurs. Many Gen Z and millennial business owners report actively using AI tools, finding them effective for streamlining operations and cutting labor costs. This technological shift may influence future hiring patterns, as some businesses report planning fewer hires due to AI’s efficiency.
Recession and Tariff Worries Decline
While economic fears have not vanished, they’re clearly receding. In Q2, 70% of small business owners believed a recession was imminent. That figure has now dropped to 61%. Tariff-related anxiety also decreased: 59% now say tariffs are a concern, down from 66%.
Only 10% now list tariffs as their top risk, compared to 17% previously. The perception of tariffs as a major threat appears to be cooling as businesses adjust to new trade dynamics.
Inflation and Consumer Demand Still Pose Risks
Despite rising confidence, inflation continues to top the list of small business concerns. Twenty-two percent cite rising prices as their biggest worry. Another 18% point to weakening consumer demand.
These concerns are echoed by Wall Street. Goldman Sachs recently warned of a potential slowdown caused by inflation and trade disruptions. Their chief economist, Jan Hatzius, wrote that even a temporary price spike could reduce consumer spending significantly.
Trade and Tax Policy Views Improve
Small business owners also view the future of government policy more favorably than before. In Q2, 44% expected new regulations to hurt their business. That number has dropped to 36% this quarter. Sentiment toward trade policy is also improving—only 40% believe it will have a negative impact over the next year, down from 51%.
Following the passage of Trump’s tax and spending bill, concern over tax policy also fell. Only 32% now believe taxes will negatively affect their business in the coming year, down from 37%.
Tariff Support Still Divides Along Party Lines
Despite improved outlooks, the president’s tariffs policy remains polarizing. Eighty-one percent of Republican small business owners support it. In contrast, 87% of Democrats remain opposed. Independents lean more toward the Democratic side, with 71% disapproving of the tariffs.
Still, the broader economic data suggests that many business owners are adapting and even thriving under current policies. Reduced uncertainty has helped stabilize their outlook, even if disagreement over tariffs persists.
Conclusion: Trump’s Economic Policies Win Broader Support
President Trump’s standing among small business owners is strengthening. Rising sales expectations, reduced recession fears, and higher hiring intentions show that Main Street is starting to align with Trump’s economic message.
Even Democrats and Independents are softening their criticism as conditions improve. While tariffs remain a flashpoint, Trump’s overall economic agenda is gaining traction across the political spectrum.
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