Small business owners have definite opinions on what the government can do to help them overcome barriers that deter their ability to compete and grow. Goldman Sachs, in a new national survey, 10,000 Small Business Voices, identifies critical challenges small business owners face in 2025 and beyond. While small businesses remain optimistic, they can grow their business, they want Congress and the Trump administration to support their efforts by prioritizing specific legislation designed to:

• Simplify the tax code
• Reduce inflation
• Cut regulatory red tape
• Increase access to affordable capital
• Enhance workforce development

“Small business owners are optimistic, but that doesn’t mean we aren’t facing real challenges.” Said Jessica Johnson-Cope, president of the Bronx-based Johnson Security Bureau, Inc., a third-generation family-run firm. “This is an opportunity for Washington to rethink how it supports small businesses and help us create economic opportunity. Let’s make sure programs reflect the realities of running a business today in our modern, ever-evolving economy.”

Burdensome Tax Regulations
Many owners say operating a business is complicated enough, even before managing the copious paperwork required by the government. A significant majority of respondents (73 percent) believe that the current tax system should be revised because it negatively impacts small businesses. Owners feel that simplifying the tax code and offering better incentives will stimulate growth.

• Tax credits and incentives are not scaled for businesses of my size (63 percent)
• The tax code is overly complex and confusing (55 percent)
• The tax code makes it difficult to maximize expenses (33 percent)
• Congress should increase incentives for small businesses (82 percent)
• Lower taxes (60 percent)

Modernize the SBA
The Small Business Administration can be critical in funding new and existing businesses. For many owners, taking out a loan at the current interest rates is unaffordable. Obtaining capital is dependent on interest rates falling below their current levels. Owners feel it’s time for Congress and the new Administration to prioritize modernizing the department. Respondents highlighted several issues they want the new Administration to address. The changes would make it simpler for small businesses to interact with the organization and improve its effectiveness in obtaining loans and allocating resources.

• Increase access to affordable capital (50 percent)
• Decrease the regulatory burden and cut red tape (47 percent)
• Support training and workforce development (34 percent)
• Modernize communication systems and technology (34 percent)
• Increase small business procurement goals and accountability (32 percent)

Adopting AI and New Technology
While 60 percent of respondents use AI, 44 percent lack the resources and training to deploy it effectively. Owners recognize that incorporating AI into their organizations is beneficial and are open to the government introducing policies that would help small businesses adopt new technology.

• Use AI to increase efficiency and productivity (80 percent)
• Assist in streamlining operations (47 percent)
• Helps the organization make better decisions (46 percent)

Hiring Remains Challenging
Every business must hire dedicated employees who are committed to its success. While 44 percent of business owners intend to recruit additional full-time or part-time staff, most are encountering difficulties in identifying qualified candidates within a competitive landscape.

• Difficult to compete with larger employers on pay and benefits (62 percent)
• Lack of qualified workers (53 percent)
• High Labor Costs (52 percent)
• Losing employees due to uncompetitive benefits (33%)

Despite economic uncertainties, tariffs, and rising labor costs, there is optimism that small businesses can overcome these challenges and continue to grow. Owners hope the government can assist them by creating a favorable business environment. “Small business owners aren’t just watching—they want a seat at the table as Washington tackles big issues in 2025.” Said Jill McCarthy, national director of Goldman Sachs 10,000 Small Businesses Voices. “Their message is simple: Listen to us. Work with us. Let’s get this right.”