Despite ongoing economic headwinds, U.S. entrepreneurs are demonstrating remarkable confidence in their business prospects for 2025. According to Ernst & Young’s (EY) latest Entrepreneur Ecosystem Barometer, 95% of surveyed entrepreneurs anticipate business growth over the next year, with 73% reporting revenue increases compared to the previous year. This optimism persists even as 43% acknowledge that the current economic environment is negatively impacting their operations.
The EY survey, conducted between March 31 and April 11, 2025, gathered insights from 500 established entrepreneurs with annual revenues exceeding $1 million. The findings highlight a resilient entrepreneurial sector that is proactively navigating economic uncertainties through strategic initiatives.
Strategic Fundraising and M&A Activities
Entrepreneurs are actively seeking avenues to bolster their businesses. The survey indicates that 95% plan to raise capital within the next 18 to 24 months, a slight increase from 91% in the previous survey conducted in fall 2024. However, only 19% aim to raise $10 million or more, down from 30% in the prior period, suggesting a more cautious approach to large-scale fundraising.
In addition to fundraising, strategic transactions are on the rise. The proportion of entrepreneurs considering activities such as mergers and acquisitions (M&A), initial public offerings (IPOs), or private sales has increased to 81%, up from 72% six months earlier. Notably, 51% are in the early planning stages of such transactions, indicating a proactive stance toward growth and expansion.
Embracing Artificial Intelligence for Competitive Advantage
Artificial intelligence (AI) is emerging as a key driver of entrepreneurial growth. The survey reveals that 40% of entrepreneurs are investing in automation and AI to build resilience, making it the top strategy among respondents. Furthermore, 42% plan to allocate significant portions of their budgets to AI and machine learning technologies in the coming year. Only 2% reported not using AI in workforce decisions, underscoring its growing role in talent management and operational efficiency.
This trend aligns with broader industry movements, as businesses across sectors increasingly recognize AI’s potential to enhance productivity and competitiveness. The integration of AI is not only streamlining operations but also enabling entrepreneurs to make data-driven decisions and adapt swiftly to market changes.
Navigating Economic Uncertainties with Resilience
While optimism prevails, entrepreneurs remain cognizant of the challenges posed by the current economic landscape. Fluctuating interest rates, persistent inflation, and potential tariffs are among the top concerns, each cited by 38% of respondents as significant threats to their business success.
Despite these concerns, entrepreneurs are leveraging their adaptability and strategic foresight to mitigate risks. By focusing on innovation, investing in technology, and exploring new markets, they are positioning their businesses to thrive amid uncertainty.
A Broader Perspective on Small Business Sentiment
Complementing EY’s findings, other surveys reflect a cautiously optimistic outlook among small business owners. A report by Principal Financial indicates that over half of surveyed firms experienced growth, with 90% maintaining or expanding their workforce. Similarly, US Bank’s June Small Business Perspective report found that 96% of small business owners consider their businesses successful, and 88% reported growth in the past year.
These insights suggest that, while challenges persist, the entrepreneurial spirit remains robust. Business owners are not only weathering economic storms but also actively seeking opportunities to innovate and grow.
Conclusion
The resilience and optimism exhibited by U.S. entrepreneurs underscore their pivotal role in driving economic growth and innovation. Through strategic fundraising, embracing technological advancements like AI, and proactively navigating economic uncertainties, they are laying the groundwork for sustained success in 2025 and beyond.
