#USA #New York #Small Business #SMBs #Tariffs

The Resilience of Small to Mid-sized Businesses in Uncertain Times

In recent months, small to mid-sized businesses (SMBs) have faced numerous economic hurdles, yet a hopeful spirit persists among these entrepreneurs. A recent report from Revenued sheds light on the challenges posed by tariffs, inflation, and strained access to capital while highlighting an underlying sense of optimism among business owners.

Economic Challenges Facing SMBs

The current economic landscape has become increasingly complex for SMBs across the country. The Revenued Q3 2025 State of Small Business Report reveals that a staggering 78% of businesses surveyed experienced notable cost increases due to tariffs implemented in recent years. This has particularly impacted industries like manufacturing and construction, where costs for materials have surged. One construction business owner from Texas noted, "Copper wire prices jumped 25% in just two months, forcing us to stockpile materials to maintain our operations."

High import-dependent regions, such as California and New York, have felt the pressure even more acutely, with 72% of SMBs reporting significant delays due to tariffs. As these small businesses adjust to this new reality, they strive to manage their operations effectively.

Inflation Emerges as a Leading Concern

Alongside tariffs, inflation has emerged as a pressing issue. 39% of SMBs identified it as their primary operational challenge. The dual burden of rising costs and consumer price sensitivity has led many businesses into a precarious balancing act. 60% of these companies are raising prices to mitigate costs, while 38% choose to absorb some of the increases, resulting in an alarming 11% decrease in average margins year-over-year. A retail owner in Florida captured this struggle: "We can't keep raising prices without risking customer loyalty, but our costs keep soaring. We've already halved our margins this year."

Labor and Financing Obstacles

Compounding the issue, 62% of SMBs are grappling with challenges in finding qualified workforce candidates. This situation is exacerbated by a tightening credit market; 49% of businesses have encountered denials for traditional bank loans in the last two years. Alternative financing options have become crucial for survival, with 70% resorting to sources like Revenued. A business owner from Georgia expressed the dilemma, saying, "We've been denied by three different banks this year. Without revenue-based funding, we wouldn't have survived the slow months."

Surprising Optimism Amidst Adversity

Despite these hurdles, an impressive 88% of SMB leaders expressed confidence moving forward. Their optimism is reflected in plans for future growth, with 68% intending to invest further into their businesses and 58% planning to hire additional staff. In a climate where uncertainty feels pervasive, this forward-looking attitude demonstrates the resilience of the small business sector.

SMB owners are also creatively addressing these challenges by diversifying their revenue streams, pursuing longer-term contracts, and establishing cash reserves. "I always remind myself to prepare for the worst and expect it to happen. We almost lost our business because we didn’t have enough savings," stated a manufacturing owner in Ohio.

Conclusion

The revelations from the Revenued survey and accompanying podcast underscore the strength of small businesses. Entrepreneurs are not just surviving; they are adapting and finding ways to thrive despite adversity. For those looking to dig deeper into these findings, the complete Revenued Q3 2025 State of Small Business Report is available. Insights gleaned from this report and its companion podcast can serve as a valuable resource for understanding the current state of the SMB landscape and the strategies that lead to survival and success.

For more information or to read the full report, visit Revenued.

About Revenued

Revenued provides flexible capital solutions tailored to support small and mid-sized businesses, helping them navigate economic uncertainties with products such as the Revenued Business Card and Flex Line.