The State of SMB Optimism

To monitor SMB outlook, we ask them about their optimism in several areas in our monthly survey of 500 U.S. SMB principals.

Our latest survey shows a drop in optimism across all measures, especially among very small businesses (VSBs, with fewer than 20 employees). VSBs rate their overall business confidence at 68.5 out of 100, a drop of six percentage points from January, and the lowest since April 2024. Their outlook is also sharply reduced for revenue and profitability (both down eight points), expansion (down 12 points), and hiring (down 14 points, to the lowest point since October 2022).

Very Small Business (1-19EE) Outlook

Small businesses (SBs, with 20 to 99 employees) are more optimistic than VSBs on every measure – especially on growth measures such as hiring and expansion – and their optimism has declined much less than that of VSBs. However, it has declined since January in each metric, especially in expansion.

Small Business (20-99EE) Outlook

Like SBs, midsized businesses (MBs, with 100-500 employees) are much more optimistic than VSBs on every metric, and their optimism has declined much less than that of VSBs. For MBs, only expansion outlook has fallen meaningfully since January, by four percentage points. MB hiring outlook actually increased slightly, by two points.  

Midsized Business (100-500EE) Outlook

The implication for B2SMB marketers? If you’re targeting the 98% of SMBs that are VSBs, focus on affordability and ROI, and highlight cost savings. If you’re targeting SBs and MBs, emphasize the value and unique benefits of your solution.

‍Looking for actionable SMB insight? Bredin’s global research gives you high-value insights to improve your go-to-market, product, pricing, UX, and other strategies. We also generate uniquely valuable data for high-impact content, PR, social, and sales support programs.