As we approach the end of the year, small businesses are hoping for an economic boost. The year has been challenging for many small business owners, and many continue to struggle with economic uncertainty. But new research shows that many see the holiday shopping season as an opportunity to increase sales and build community support.

In our Fall 2025 Small Business Survey, we heard from 1,295 small business owners across 48 states, Washington, D.C., and Puerto Rico. We also distributed a short follow-up survey focused on the impacts of the federal government shutdown to business owners who expressed a willingness to participate further. We received 188 responses to that follow-up survey. Together, these surveys paint a picture of a small business landscape that continues to struggle with economic and political uncertainty. Despite this, business owner confidence rose slightly, and many are hoping for increased community support during the holiday season.

Main Street businesses are small but mighty

In line with past surveys, we found that Main Street businesses operate with very few staff and have a significant impact on their local economies. Nearly three-quarters (72%) of respondents to the Fall 2025 survey have fewer than three full-time employees, and 82% have fewer than ten employees in total (including full-time, part-time, and seasonal or temporary staff). The majority of business owner respondents contribute to local causes (70%), hire locally (63%), use local vendors (56%), and support their local Main Street program (53%). 

Also consistent with our past small business research, 72% of respondents were female business owners. Most business owners rely on in-person visits; 48% of respondents reported not using e‑commerce or online sales. Retail and food and beverage businesses represented 62% of respondents by business type, with professional services (9%), personal services (7%), and arts and entertainment businesses (6%) completing the top five industries. 

Main Street business confidence remains near its all-time low

In our Spring 2025 Small Business Survey, small business confidence was the lowest we have ever measured. Confidence increased slightly in this survey, but we still see significant financial anxieties amongst respondents. Over a third (38%) of Main Street business owners reported decreasing revenue from August through October 2025, and 45% reported decreasing net profit over that same time period. Not all businesses had losses: 58% of respondents reported either steady or increasing revenues, and 49% reported steady or growing net profits. 

These gains and losses are not experienced equally across the small business economy, though. We dug deeper into the data to see how different businesses fared by key attributes:

• The smallest businesses reported the most significant economic strain. Among those with fewer than three full-time employees, 55% had steady or increasing revenue — three percentage points below the average. Forty percent of these smallest businesses experienced declining revenue. In sharp contrast, half as many businesses with more than ten full-time staff reported diminished quarterly revenues.
• Fewer retail and food and beverage businesses reported steady or increasing revenues. Fifty-five percent of retail and food and beverage businesses had unchanged or growing revenue, while businesses in professional services tended to fare better than average, with 62% reporting steady or increased revenues. 
• Net profit remained a challenge for many business owners, with more than half (52%) of retail businesses reporting a decrease from August through October 2025. Food and beverage businesses also struggled with net profits. 

Given these financial trends, it is unsurprising to find that the average Main Street business confidence rating in the Fall 2025 survey was 7.0 out of 10 — an uptick from the Spring 2025 average of 6.7, but still the second-lowest result over the past seven biannual surveys and much lower than the 7.6 average we saw between Fall 2022 and Spring 2024. 

Much like revenue and profit, this decreased confidence is not experienced equally across the small business economy. We see similar trends when we dig into the data and look at different business sizes and types:

• Smaller businesses reported lower confidence. Businesses with fewer than three full-time employees had an average confidence rating of 6.8, compared to 7.2 among businesses with more than ten full-time employees. 
• Professional services businesses are feeling confident. They reported an average confidence rating of 7.9, compared with 6.8 among owners of retail and food and beverage businesses. 
• Older businesses reported higher confidence. Long-standing businesses that launched at least 10 years ago had an average confidence rating of 7.2, compared to 6.9 for businesses launched in 2020 or later. 
• Small-scale makers and manufacturers had higher confidence ratings than businesses that did not produce any packaged goods, with averages of 7.3 and 6.9, respectively. 

Main Street businesses are concerned about social, economic, environmental, and political factors

Alongside quantitative questions about revenue and confidence, our Fall 2025 survey included five open-ended questions that allowed respondents to share details about their experiences and perspectives. Our follow-up survey, sent in November to a subset of the original respondents, had a single open-ended question focused on the impacts of the federal government shutdown. 

Across the more than 4,500 open-ended responses to these questions, about 30% referenced social, economic, environmental, and political factors that contributed to uncertainty and anxiety. Here are some of the many responses that referred to these broad trends: 

What is something you’re proud of that your business accomplished in the last 12 months?

“Staying afloat the last 12 months in a very inflationary period. As a bookstore, our items are considered non-essential.” (Tennessee retailer)

What is the biggest challenge your business has faced in the last 12 months?

“We have a very low pool of workers in our rural area. Many workers do not want to work evenings or weekends, usually due to no affordable daycare.” (Oklahoma food and beverage business)

Please briefly explain the confidence rating you chose.

“Decreasing sales, increasing expenses. Everything seems to turn political; it’s hard to even post photos of books on social media without angering someone.” (Washington retailer)

“I believe in my business, my team, and what we do. Trauma does not take time off, and those who are affected will always need expert care. We have weathered many storms in the past, and I am confident in our ability to persevere through the coming months.” (Maryland healthcare business)

Has your business been affected by the shutdown? If so, how?

“Yes, we have been impacted by the government shutdown. We are south of Atlanta and have a large amount of our customer base furloughed by the feds. Most are struggling with groceries and gas, so eating out at restaurants isn’t in their budget. We have done giveaways for food, but our actual sales are significantly down since the shutdown.” (Georgia food and beverage business)

The holiday season creates opportunities for Main Street businesses

The holiday shopping season is the busiest time of the year for many small business owners. We asked an open-ended question to try to understand how business owners are seeking to capture this demand. We received four categories of responses: 

• About 40% of Main Street businesses shared that they had pre-ordered inventory well in advance in an effort to manage expenses and were eager to move their products and generate revenue.
• About 25% of respondents said they focused on marketing and promotions efforts to maximize holiday sales opportunities.
• About 10% indicated that they were planning to offer new products or take new approaches to their holiday business operations.
• About 25% either indicated they were not making any changes to their holiday preparations or that the holiday season did not impact their business. 

Businesses that had taken on extra inventory in advance often cited the impact of tariffs on their inventory decisions, such as purchasing earlier and sourcing new suppliers with better options. 

“My preparation for the holiday season has been very different from last year. I started preparing much earlier. I wanted to stay ahead of expected price increases and supply shortages. I’m hopeful that this extra preparation will set [me] up for a smoother, more successful holiday season.” (Georgia retailer)

Respondents who placed greater emphasis on holiday marketing and promotions shared plans for online marketing, holiday vendor shows, unique promotions, interactive events, and more.

“We are going big with decorations this year, hoping that a draw outside will bring people inside.” (California retailer)

Main Street support plays a crucial role

With so much tumult, uncertainty, and anxiety, there is one clear bright spot in the survey data — the impactful support of local Main Street organizations for small business owners. Business owners who indicated they received support from a local Main Street organization have average business confidence scores that are 0.9 points higher than those of business owners who do not receive local Main Street support, and 64% of small businesses receiving support from local Main Street programs had steady or increasing revenues over the past three months, compared to 53% of businesses who had not received such support. 

In the face of broad societal changes and declining consumer and business confidence, these results show that Main Street support is powerful and needed. Main Streets can play an essential role in helping small businesses weather uncertainty. Here are some ways you can help:

• Create and leverage networking opportunities with Main Street business owners to build partnerships, collaboration, and opportunities to vent. Offering a listening ear can help the business owner think through solutions and build empathy and stronger bonds with local leaders.
• Remind residents and visitors to shop small and support their local businesses. Small Business Saturday is a great opportunity to run promotions and boost local entrepreneurs.
• Encourage business owners to explore Main Street America’s resources for small businesses. We are developing new resources all the time and will be rolling out some exciting new tools in early 2026. 

Small businesses support communities in myriad ways — from sponsoring youth sports and organizing cultural events to providing third spaces and enriching local economies. Now, they need our support. This holiday season and beyond, we encourage you to shop small, connect with local businesses, and invest in building resilient communities.

Looking for more data? Dive into the survey results here > 

Downtown Decorations, a Main Street America Allied Member, is this quarter’s Main Spotlight advertiser. For more information about what they do to support Main Street organizations, click here.