Home › Features › May 2025

New Report: Small Businesses Stayed Positive on Growth in Q1 - While Bracing for Economic Shifts

Staff Report From Georgia CEO

Wednesday, May 21st, 2025

Small businesses remain generally positive about growth potential, though optimism has fallen slightly in the face of economic uncertainty, according to the latest Small Business Cash Flow Trend Report from OnDeck, the leading small business lending company at Enova (NYSE: ENVA) and Ocrolus, the document AI and cash flow analytics platform for lenders.

Key findings include:

  • Growth expectations: 93% of small businesses anticipate significant or moderate growth in 2025 (compared to 94% in Q4 2024).

  • Tariff concerns: A majority of small businesses (55%) reported taking action ahead of tariff implementation to prepare their businesses for potential operational or financial impacts.

  • Rising AI use: More than half of small businesses (69%) are using artificial intelligence tools often to assist with marketing-related tasks.

  • Businesses bypassing traditional banks: 76% of small businesses report turning to non-bank lenders and bypassing traditional banks, a survey all-time high.

"The small business community is resilient, and we see them working hard to prepare themselves to weather certain environmental factors such as tariffs. Whether it's additional capital needed for front-loading inventory or help with general cashflow demands, OnDeck is committed to supporting small businesses with accessible, transparent and dependable financing," said Jim Granat, Co-President of Small Business at Enova.

"With macroeconomic conditions evolving rapidly, small business owners need capital solutions that are as agile as they are," said David Snitkof, SVP of Growth at Ocrolus. "AI-powered analytics infrastructure enables lenders to evaluate real-time cash flow data to identify more qualified businesses and expand access to the capital they need to navigate uncertainty."

The report is based on responses from 437 small businesses with working capital loans and over 2 million small business applications for working capital financing during the past 15 months. The nationwide survey was completed between February 17-27, 2025. For more information and complete survey results, please visit: ondeck.com/small-business-trends.