Biz2Credit 2024 Small Business Earnings Study Released, Featured by Fox Business
January 22, 2025 | Last Updated on: January 22, 2025
By Brett Holzhauer
Small businesses continue to endure financial strain due to cost pressures from inflation, negatively impacting earnings throughout 2024, according to Biz2Credit’s findings in the 2024 Small Business Earnings Report.
Our study found that average small business earnings soared in 2023, but reeled backward in 2024 by 45% as small companies bore the brunt of inflation. Fox Business cited the study, noting that 2025 may be another difficult year as well.
Here’s what you need to know, and how you can be strategic about your small business this year.
Biz2Credit Small Business Earnings Report Findings
In our second version of the Small Business Earnings Report, we analyzed data from over 100,000 small businesses revenue and earnings. This study is a deep dive into how small businesses are performing financially in terms of revenue, expenses, and earnings.
We found several data points that paint a frustrating picture for small business owners.
- Revenues are up 45% from 2023 to 2024. However, expenses rose a whopping 81% in the same timespan.
- The holiday season proved to be some of the harder months for earnings, while summer brought in peak earnings.
Despite 2024 being a tight year financially, small business owners are feeling optimistic about days ahead. The National Federation of Independent Business (NFIB) Small Business Optimism Index reached a six-year high amid tampered inflation and potential regulation easing when President-elect Trump takes office. The same index reports the #1 issue for small business owners and continues to be the focus of our study: the impact of inflation.
How Small Businesses Can Approach 2025
As small businesses head into 2025, staying financially smart is more important than ever. Looming tariffs, lingering inflation, and other economic factors may continue to put pressure on the 33 million small businesses that power the American economy. Other factors including a tight labor market will continue to challenge small enterprises as well.
If you operate a small business, be sure to consider different revenue streams and funding options to grow or stabilize your business. And if you’re considering potential cashflow needs, keep an eye on changing interest rates in 2025 as they may continue to drop if economic conditions improve.
