Entrepreneurs bullish on growth despite economic headwinds

Entrepreneurs are displaying remarkable resilience in the face of economic headwinds, with 95% expressing confidence in their business growth despite 43% acknowledging negative economic impacts, according to new research from Ernst & Young. This optimistic outlook from America’s established business leaders offers a compelling glimpse into the entrepreneurial mindset, suggesting that adaptability and strategic investments—particularly in AI and automation—are enabling continued growth even during uncertain times. The contrast between acknowledged challenges and overwhelming confidence highlights the distinctive perspective that drives entrepreneurial success.

The big picture: Despite significant economic concerns, entrepreneurs are demonstrating extraordinary confidence in their business prospects, with 95% expecting growth in the coming year.

• Nearly three-quarters (73%) of entrepreneurs surveyed reported revenue growth this year, with 29% achieving impressive growth of 20% or higher.
• An overwhelming 77% anticipate the US economy will strengthen over the next year, showing remarkable optimism despite current challenges.

Key concerns: Economic uncertainty and regulatory changes rank equally as top threats, with 38% of entrepreneurs citing each as significant business challenges.

• Rising interest rates, inflation, and tariffs comprise the economic concerns weighing on business leaders’ minds.
• Policy and regulatory shifts represent an equal concern, highlighting the complex environment entrepreneurs must navigate.

Capital strategies: Nearly all entrepreneurs (95%) plan to raise capital in the next 18-24 months, though their fundraising ambitions have become more modest.

• A significant 81% are considering strategic transactions as part of their growth strategy.
• Only 19% aim to raise $10 million or more, down substantially from 30% previously, suggesting a shift toward capital efficiency.

AI and workforce trends: Technology investments are playing a crucial role in building business resilience, with 40% specifically investing in automation and AI solutions.

• AI and machine learning technologies are a priority for 42% of entrepreneurs surveyed.
• One-third (34%) are using AI specifically for talent acquisition, contributing to the 63% who report finding qualified talent has become easier.

Why this matters: Entrepreneurs are widely considered economic bellwethers, making their confidence a potentially significant indicator for the broader business landscape in 2025.

• As Anna Horndahl, EY Americas Entrepreneur Of The Year™ Co-director, noted: “Entrepreneurs are the backbone of the US economy, so their optimism offers a powerful indicator about what’s ahead for 2025.”