As the year progresses, small and midsized business owners are taking a clear, forward-moving approach to growth.
Rather than waiting out uncertainty, they are investing in tools, talent, community engagement and long-term resilience. Bank of America’s 2025 Business Owner Report reflects this momentum, showing nearly 3 in 4 owners expecting revenue increases over the next 12 months and many planning to expand (59 percent), hire (43 percent) and secure financing (83 percent). Those trends point to practical steps entrepreneurs can take now to strengthen their footing and build sustained progress.
Invest in the Right Digital Tools
Innovation remains a reliable path for efficiency and growth. Nearly all (91 percent) business owners plan to adopt digital tools over the next five years, 52 percent aiming to accept more forms of digital payments and 50 percent planning to implement artificial intelligence.
Many businesses have already made progress: 77 percent integrated AI over the past five years, using it for marketing (50 percent), content production (38 percent), customer service (37 percent) and inventory management (28 percent).
Building on that momentum, owners are modernizing payments to reduce friction at checkout and accelerate cash conversion, adding options such as Zelle, Venmo and Apple Pay to meet customer preferences. Others are testing focused AI use cases such as automating routine customer inquiries and drafting product descriptions.
New tools can also help business owners digitize repetitive workflows such as scheduling, invoicing and inventory alerts, freeing staff time for higher-value contributions. That can be particularly helpful for companies impacted by labor shortages (61 percent). As digital capabilities expand, businesses are also planning to increase cybersecurity measures (30 percent), strengthening authentication and data protection to preserve trust alongside growth.
Leverage Community Engagement at Local Events
Community engagement can help businesses grow and attract new customers. More than half of business owners (58 percent) have modified their operations around major events such as sports games, concerts and festivals by introducing targeted promotions, social content, themed campaigns and sponsorships. The approach has paid off; approximately half reported increased sales (51 percent) and saw growth on social media (47 percent). Roughly 4 in 5 plan to repeat their efforts.
Aligning marketing and planning with events such as street fairs, neighborhood theater and regional festivals can also create meaningful ripple effects. Businesses can set measurable goals for event days, coordinating staffing and hours in advance and pairing in-person activations with digital calls to action to extend reach and impact and connect to the community.
Manage Cash Flow With Discipline
Disciplined cash flow management is critical for business owners, especially when inflation (70 percent) and interest rates (58 percent) are top concerns. Most entrepreneurs (88 percent) report inflation impacting their businesses, prompting many to raise prices (64 percent) and scrutinize cash flow and spending plans (39 percent). Concurrently, 75 percent are facing supply chain pressures, leading to price adjustments (52 percent) and sourcing challenges (32 percent).
In response, business owners are proactively adjusting their financial strategies. That includes reevaluating cash flow projections, optimizing spending and exploring local sourcing options to build more resilient supply chains. Beyond those operational adjustments, a disciplined focus on liquidity is key. Owners should also engage with their bankers to review existing loan structures, ensuring they align with current cash flow profiles and the interest rate environment.
Plan for Financing and Succession
Demand for capital continues to underpin long-term operational health. Eighty-three percent of business owners intend to obtain financing within the next 12 months, business credit cards (53 percent) playing a key role alongside personal savings (41 percent), traditional bank loans (32 percent) and personal credit cards (29 percent). Financing plans are informed by factors that include expected growth, hiring and retaining staff, and ongoing investments in digital tools.
Succession planning remains a critical component of long-term planning, yet 40 percent of business owners have not prepared one. They can begin by identifying potential successors, outlining governance and core processes, and tracking value drivers such as margins and recurring revenue. Advisory teams, including bankers, accountants and attorneys, can help, especially when engaged early in the process.
The findings point to steady, strategic progress. By modernizing operations, managing cash deliberately and planning for the future, business owners are building resilience that will carry into the latter part of 2026 and beyond.
James Norman is a vice president and relationship manager for business banking at Bank of America. He is based in northwest Arkansas.
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