• by Ray Schultz , Columnist, February 10, 2025

Small businesses are feeling good about the economy, which could lead to more email prospecting or at least improved customer targeting. 

But SMBs are facing several challenges, one of which is finding customers, according to the Swoop State Of Business Survey 2025:

• Managing cash flow — 29%
• Access to funding — 28%
• Attracting and retaining customers — 23% 
• Hiring and retaining employees — 11%  
• Scaling operations — 5%
• Adapting to market changes — 4%

But SMBs are optimistic overall. In 2024, 46% said they were feeling much better, up from 26% in 2023. 

And, 34% were feeling slightly better, compared to 18% in the prior year. Only 3% felt much worse, versus 2% in 2023.  

At the same time, 35% describe their business health as excellent, 45% as good, 16/% as fair and 4$ as poor.

The latter would signify “negative cash flow, significant financial challenges,” the study notes.  

Equally hopeful is the fact that 88% see the markets they operate in as positive, 28% extremely so and 60% somewhat.  

Moreover, 34%% claim they are equipped to take advantage of business growth opportunities, and 51% say they probably are. 

On another front, 83% had applied for external funding in the previous 12 months. But here, too, they were beset by challenges: 

• Lack of collateral — 40% 
• Low credit score — 34%
• High interest rates/cost of capital — 34% 
• Lengthy/complicated application process — 27% 
• Insufficient time in business — 27%
• Lack of transparency from lenders — 18% 
• None of the above — 2%

This spells opportunity for some financial institutions.  

Swoop surveyed SMBs via its newsletter and social media. Of the companies polled, 35% have been in business for two to five years, and 28% from five to ten years. Only 12% have been operating for less than one year. Among the businesses surveyed, 19% have 1-10 employees, while 53% have 11-50, 21% have 51-100, and 7% have 100+ (7%).