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Small Business Survey 2025

Verizon Business sixth annual State of Small Business Survey.

Upgrading tech stacks for new ways of doing business

The digitalization of small and midsize businesses marches on as SMBs continue to adapt to new ways of doing business. Employees expect more flexibility, and customers expect more ways to make purchases online and interact with sellers. As such, a growing number of small businesses are adopting digital tools and technologies to streamline business operations and enhance both customer and employee engagement.

47%

of small businesses

have implemented new systems or technology in the last 12 months to bolster security for their increasingly digital operations

58%

of small businesses

have started offering new products and services to adapt to changing customer needs

AI adoption spreads in new ways

Decision makers’ perceptions of AI’s benefits have remained fairly consistent, although reservations about the technology have declined since last August. Fewer respondents are concerned about the implications of integrating AI. The more they become familiar with the technology, the more they see its potential value across different areas of their business, including inventory management, customer service, accounting, and cybersecurity.

38%

of SMBs

are leveraging AI

28%

are using AI

for marketing and social media, while 24% are using the technology for written communications

24%

are using AI

to power digital personal assistants that can help them with customer service

25%

are using AI

to boost their cybersecurity efforts

SMBs content creation on the rise

Social media remains among the leading customer outreach tactics among SMBs over the past year, with Facebook still at the top of the hierarchy. YouTube overtook LinkedIn as the third most used platform. Content creation has emerged as a key tactic with decision makers.

82%

use Facebook

to promote products and connect with customers

62%

of decision makers

began creating content or increased investment in content creation over the last year

58%

of small businesses

are on the TikTok platform

Evolution of payments technology

SMBs invested in technology additions and upgrades this year to make efficiency gains and to better connect with customers. Better engaging with customers comes in different forms, including improving or streamlining customer service, as mentioned with AI-powered digital personal assistants in the previous section, and making purchasing easier.

58%

of SMBs

have evaluated or upgraded their payment processing or are planning to within the next six months

40%

of retailer SMBs

are investing in 5G networks, which are faster and more secure, to facilitate contactless payments, jumping up from 34% last year

Growing importance of cybersecurity

Decision makers possess a greater understanding of cybersecurity best practices than last year, but they’re also less confident that their business is protected. The drop in confidence likely correlates with fewer respondents believing they’ve invested enough to protect their businesses from cyberattacks. Cybersecurity is a growing priority for SMBs looking to protect growing digital operations.

52%

of SMBs

acknowledge that expanding into new locations has increased the threat of cyberattacks on their business

47%

of respondents

invested in new technologies to improve cybersecurity in the last year

48%

of small businesses

have added or upgraded cybersecurity training for employees

25%

of SMBs

don’t believe their business is investing enough in cybersecurity practices

SMBs are returning to office, not without challenges

SMBs have faced some challenges with hiring and retaining employees, which may suggest a tension between employers and job seekers, as SMBs push for a return to office. In the meantime, SMBs are exploring AI for recruitment and retention.

45%

of employers

have had challenges hiring new employees.

37%

of employers

have lost employees or had challenges retaining top talent.

>66%

of decision makers

say their business requires employees to work fully in person

19%

of SMBs

are using AI for recruitment and talent sourcing

56%

of employers

believe AI can help their business offset any pain points caused by reduced or frozen headcount.

53%

of employers

believe AI can help the business retain current staff.