Small Business Trends: Emerging Technologies Reshaping Entrepreneurship in 2025

small business trends

1. New Avenues for Business Creation

Large technology platforms have opened up innovative pathways for entrepreneurs to start businesses. These platforms provide tools, resources, and marketplaces that enable individuals to launch ventures with minimal overhead.

E-commerce giant Amazon has fostered a thriving ecosystem for small sellers. Its Fulfillment by Amazon (FBA) program allows entrepreneurs to leverage Amazon’s logistics network. This has led to a significant increase in interest, with search volume for “Amazon FBA” growing 478% in the past decade.

Other tech companies have created similar opportunities:

  • Apple’s App Store and Google’s Play Store host millions of apps, providing a platform for developers to reach global audiences.
  • Substack enables writers to monetize newsletters, attracting over 2 million paying subscribers across its platform.
  • Ghost offers open-source software for bloggers and media companies, with over 100 million installations since 2013.

These platforms have redefined the concept of small business, with many ventures operating without employees. In fact, approximately 80% of the 30 million small businesses in the United States are sole proprietorships.

2. The Online Shift in Small Business Commerce

The digital transformation of commerce has accelerated, with small businesses increasingly embracing online sales channels. This shift has been driven by changing consumer behavior and the need to adapt to new market realities.

Key statistics highlight this trend:

  • Nearly 75% of small businesses surveyed by Intuit in 2021 reported selling products or services online.
  • Etsy saw a 62% year-over-year increase in active sellers in 2020, reaching 7 million by the end of 2023.
  • Over half of all goods sold on Amazon come from third-party sellers, many of which are small businesses.
Platform Key Metric
Amazon 2.5 million+ active third-party sellers
Shopify 4.8 million+ businesses using the platform

The 2020 holiday season underscored the importance of e-commerce, with online retailers reporting a 104% year-over-year increase in sales. This stark contrast to the struggles faced by brick-and-mortar retailers has prompted many small businesses to prioritize their online presence.

The shift is evident in revenue sources as well. In January 2021, 18% of small businesses reported that at least a quarter of their revenue came from e-commerce sales, up from just 7% the previous year.

3. Innovative Financing Solutions for Growth

Small businesses are exploring new avenues for financing as traditional lending methods often fall short of meeting their needs. While banks remain the primary financial partners for over 80% of firms, many businesses still struggle to secure necessary funding.

Challenges in traditional financing:

  • Nearly half of businesses surveyed by the Federal Reserve in 2020 opted not to apply for needed financing.
  • Historically, only about 50% of merchants receive the funding they require when applying.

This gap has given rise to fintech companies specializing in small business financing:

  • Over 140 fintech firms now focus on serving small-to-medium businesses (SMBs).
  • These companies offer services ranging from lending to payment processing.

Notable players in this space include:

  1. Kabbage: Acquired by American Express in a deal estimated at $1 billion, Kabbage uses alternative data and machine learning to streamline the loan process.
  2. Bluevine: Founded in 2013, Bluevine has provided over $14 billion in financing to more than 450,000 small businesses.

These fintech lenders are not banks, which allows them to take innovative approaches to assessing creditworthiness and providing capital to small businesses.

4. Virtual Efficiency Through Software Solutions

Small businesses are increasingly turning to software solutions to streamline operations and boost efficiency. These tools enable entrepreneurs to manage various aspects of their businesses remotely and with greater ease.

Popular software categories for small businesses include:

  • Customer Relationship Management (CRM)
  • Accounting and bookkeeping
  • Project management
  • E-commerce platforms
  • Marketing automation

Cloud-based solutions have become particularly valuable, offering flexibility and scalability. They allow small businesses to access powerful tools without significant upfront investments in hardware or IT infrastructure.

Many of these software solutions integrate with each other, creating ecosystems that enhance productivity and data flow across different business functions.

5. The Essential Nature of a Digital Presence

In today’s business landscape, a strong digital presence is no longer optional for small businesses—it’s a necessity. This extends beyond simply having a website to encompass a comprehensive online strategy.

Key components of a digital presence include:

  • A responsive, mobile-friendly website
  • Active social media profiles
  • Online customer reviews and ratings
  • Digital marketing efforts (e.g., SEO, content marketing, email campaigns)

Small businesses that invest in their digital presence often see benefits such as:

  • Increased visibility to potential customers
  • Improved customer engagement and loyalty
  • Enhanced ability to compete with larger businesses
  • Access to valuable customer data and insights

As consumers increasingly rely on digital channels to research and make purchasing decisions, small businesses must adapt to remain competitive.

6. The Growing Threat of Cybersecurity Issues

As small businesses become more reliant on digital tools and platforms, they face an increased risk of cybersecurity threats. These risks can have severe consequences, including financial losses, data breaches, and damage to reputation.

Common cybersecurity threats facing small businesses:

  1. Phishing attacks
  2. Ransomware
  3. Data breaches
  4. Insider threats
  5. Malware infections

Many small businesses lack the resources or expertise to implement robust cybersecurity measures, making them attractive targets for cybercriminals.

This vulnerability highlights the need for:

  • Employee training on cybersecurity best practices
  • Regular software updates and patch management
  • Implementation of multi-factor authentication
  • Data encryption and backup solutions
  • Cyber insurance policies
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