Despite Organizations Scrambling to Adapt Following the 2024 Election, Nearly 90% of SMB Owners Surveyed Remain Optimistic for 2025

Rhea-AI Summary

Fiverr International (NYSE: FVRR) released a survey of 1,001 U.S. small business owners examining post-2024 election business sentiments. Despite challenges, nearly 90% of SMB owners remain optimistic about 2025, with 85% believing the new administration will improve economic conditions for small businesses.

Key concerns include inflation (40%), rising import costs (38%), and access to talent (27%). The survey revealed that 72% expect impact from new tariff policies, while 84% anticipate effects from the new tax structure. Women-led businesses show particularly high optimism, with 92% expecting increased revenues in 2025.

Looking ahead, 76% of businesses expect the administration's workforce approach to affect operations. Investment priorities include marketing and growth services (39%) and new technologies adoption (33%). Generational differences exist, with 89% of Gen-Zers optimistic compared to higher skepticism among Baby Boomers.

New research highlights how the new administration will inform business plans – with policies on tariffs, taxes, and the workforce set to impact operations

NEW YORK, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today announced findings from a survey assessing the state of the small business ecosystem and how the recent 2024 U.S. General Election is shaping business owners’ decision-making for 2025 and beyond. The new research features insights and concerns from 1,001 U.S. small business owners after the election to measure business sentiments for 2025. In addition to inflation (40%) and rising import costs (38%), businesses foresee access to talent (27%) as a predominant hurdle going forward.

“As we reflect on 2024 and a pivotal election cycle, the dynamics of work are steadily evolving in meaningful ways,” said Matti Yahav, Chief Marketing Officer at Fiverr. “Yet despite these dramatic shifts, the data shows a growing optimism amongst business leaders alongside a growing movement toward freelancing – as organizations look to stay as flexible and agile as possible to tackle any challenge head-on. As we head into 2025, this synergy between small business owners and freelance professionals will be integral to navigating an uncertain business landscape and capitalizing on new and exciting growth opportunities.”

Key themes that emerged from the data:

Following a historic election season, business leaders across the spectrum remain generally optimistic about the growth of their organizations.

• In the days following election night, almost 90% of surveyed small business owners were optimistic¹ about the future; especially within sectors at the center of the electoral cycle, such as education (92%), finance (89%), and retail (89%)
• 85%² of surveyed businesses believe that the new president will improve the economic situation for small businesses, with higher rates of optimism amongst larger organizations (89% amongst businesses with over 100 employees)
• Both men (85%²) and women (83%²) also remain hopeful for the new administration and look forward to business growth – so much so that nearly 92% of women-led businesses expect increased³ revenues in the new year
• However, older generations of business leaders remain more skeptical, with 41% of Baby Boomers feeling pessimistic about the future compared to 89% of Gen-Zers who remain optimistic

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¹ ‘Very optimistic’ and ‘Somewhat optimistic’ responses combined
² ‘Yes, definitely’ and ‘Yes, somewhat’ responses combined
³ All ‘increase’ options combined

The economy remains the top concern for small business owners for 2025 and across industries, generations, and genders.

• Key talking points of the election, such as inflation, tariffs, and fears of economic downturn, were top of mind for organizations – with 55% of owners citing rising costs as one of their primary concerns heading into 2025, and over 38% also fearing an impending economic recession
• Fears of inflation were particularly exacerbated amongst sectors that prioritize logistics – such as manufacturing (64%), healthcare (62%), and retail (59%)
• 21% of women-led small businesses cite equitable access to capital and financing as one of their primary concerns for the new year
• Political issues still matter to many as well across the aisle too – Baby Boomers (31%) and Gen-Zers (31%) both agree that increased political instability is a real concern that needs to be dealt with

The new administration’s policies are leaving businesses scrambling to adapt and plan for the new year.

• 72% of surveyed small businesses say that the administration’s proposed tariff policies will impact⁴ their day-to-day operations; this is especially true in sectors like HR (87%), retail (80%), and education (80%)
• 84% of leaders believe that the new tax structure will impact⁴ their businesses; 91% of Gen-Zers and 86% of Millennials state that it will impact their operations
• The administration's policies on tariffs, taxes, and the workforce appear to disproportionately affect women-led businesses, with around 6% more women small business owners reporting an impact⁴ compared to their male counterparts (6%, 5%, and 9%, respectively).
  

2025 poses unique challenges for businesses to tackle as organizations grapple with the future of work.

• The new administration’s economic agenda has (38%) businesses preparing to grapple with increased costs of imports
• 20% of business leaders see a lack of DEI measures as an organizational challenge in the new year, with more women (25%) than men (18%) reflecting this concern
• Gaps in key skills remain a critical hurdle, especially amongst Gen Z business leaders (30%); likewise, 22% of business owners view regulatory compliance as a critical obstacle
  

Hiring will continue to be a focal point for small businesses, as they plan to double down on several key areas and skills going forward.

• Over three-fourths of businesses (76%⁴) said the administration’s approach to the workforce will impact their business – so much so that nearly a quarter (24%) of owners are concerned about labor shortages and filling critical skill gaps across teams
• 27% of small businesses see hiring talent as a predominant hurdle in their 2025 plans alongside increased access to materials and products (also (27%)
• When budgeting and planning for the new year, almost 2 in 5 (39%) of owners will be prioritizing marketing and growth services to reach new audiences
• Similarly, a third (33%) of business leaders are looking to invest in the adoption of new technologies, such as AI programs and automated processes.

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⁴ ‘Very impactful’ and ‘Somewhat impactful’ responses combined

Methodology
The research was conducted by Censuswide, among a sample of 1001 18+ small business owners in the US ($1 - $40m revenue and under 500 headcount) max 10% sole traders. The data was collected between 08.11.2024 - 15.11.2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

About Fiverr
Fiverr’s mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, nearly 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture.

Don’t get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on X, Instagram, and Facebook.

Press Contacts
Jenny Chang
Tommy Lee
press@fiverr.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/139de734-884e-4ece-bd6c-85d45de2fbf3

FAQ

What percentage of SMB owners are optimistic about business growth after the 2024 election according to FVRR's survey?

According to Fiverr's survey, almost 90% of surveyed small business owners expressed optimism about their business growth following the 2024 election.

How will the 2024 election's tariff policies impact businesses according to FVRR's research?

72% of surveyed small businesses reported that the new administration's tariff policies will impact their day-to-day operations, with particularly high impact in HR (87%), retail (80%), and education (80%) sectors.

What are the top three challenges facing SMBs in 2025 according to FVRR's survey?

The top three challenges identified are inflation (40%), rising import costs (38%), and access to talent (27%).

What percentage of women-led businesses expect revenue increases in 2025 according to FVRR?

Nearly 92% of women-led businesses expect increased revenues in 2025 according to Fiverr's survey.

What are the main investment priorities for SMBs in 2025 based on FVRR's findings?

According to the survey, 39% of owners will prioritize marketing and growth services, while 33% plan to invest in new technologies, including AI programs and automated processes.

How do different generations view business prospects for 2025 according to FVRR's research?

The survey shows a generational divide with 89% of Gen-Zers feeling optimistic, while 41% of Baby Boomers express pessimism about the future.