Alignable Survey: 55% of Small Biz Owners Say Their Income is Half What It Was Last Year

Despite mounting economic pressures and ongoing tariff uncertainty, small business owners across the U.S. are fighting back — and many are making great strides.

A new report from Alignable, North America’s largest network for small business owners, reveals that 45% of entrepreneurs say their networking is opening doors even in today’s challenging economy, helping their businesses to grow successfully.

When asked what specific strategies small business owners are using to counteract economic headwinds and ongoing tariff hikes, five actions emerged:

• Prioritizing customer retention
• Cutting costs and reducing overhead
• Networking more to find new customers 
• Expanding into new markets or services 
• Securing new referral partners

Beyond these Top 5 moves, the entrepreneurs said they also found new suppliers or diversified their sourcing, raised their prices, and/or delayed investments and hiring.

This report is based on 4,082 responses from randomly selected small business owners polled by Alignable from 5/12/25 to 6/3/25, as well as data from 25,000 additional responses from the past six months of surveys.

"Something exciting is happening amid all of the economic chaos we’re experiencing,” said Eric Groves, CEO and Co-Founder of Alignable. “Savvy SMB owners are doubling down to expand their networks, pivot, and find new solutions to the daunting issues facing them. They're strengthening relationships, tapping into trusted networks, banding together for more referrals, and finding new ways to generate business. These challenges are not going away anytime soon, so this kind of proactive, resilient mindset will be essential for their long-term success."

This resilience is encouraging — and it’s reflected in some other parts of the survey, as well:

• 72% say they have at least a month of cash reserves, while 52% have at least three months on hand.
• And while 54% said they expect a recession to hit this year, that is six percentage points lower than the 60% who predicted it last month.
• Of those concerned about a significant economic downturn, only nine percent worry that their businesses won’t survive it.
• Meanwhile, the majority of those polled (56%) expressed confidence they’ll adapt, build resilience, and weather a recession if one occurs. 
• Also, 43% of those in manufacturing are making as much or more now than they did a year ago. The same goes for 41% of marketers and 39% of consultants. 
• And 23% of business owners across the board said their customers are spending the same or more with them compared to this time last year.

Despite Increased Resilience, Revenue Loss Affects Many

While many small business owners are finding ways to jump economic hurdles, Alignable’s poll also shows that revenue loss for many continues to climb.

More than half (55%) of those polled said their income over the past month is half or less of what they earned this time last year, a figure that’s up 10 percentage points from December.

Many point to tariffs, inflation, and a decrease in customer spending as core causes for the revenue loss. In fact, 51% said their customers are spending much less than they were a year ago. And another 25% said they’re spending slightly less.

Seeing a Slowdown Across Many Industries

Some 60% of those in travel/lodging say they’re making half or less in 2025 so far, compared to 2024. Many sectors aren’t far behind with the exception of Science and Technology, which is faring better than most.

Home Furnishings: 59%
Automotive: 58%
Real Estate: 56%
Arts/Music: 56%
Beauty Salons: 55%
Retailers: 55%
Finance: 54%
Restaurants: 54%
Construction: 52%
Gyms: 46%
Science & Tech: 32%

How are SMB Owners in Key States Doing?

Looking at entrepreneurs in various states, there’s a range here, too, with small business owners in New York weathering the storm better than their comrades in other states.

California: 59%
Florida: 58%
North Carolina: 58%
Arizona: 55%
Texas: 55%
Massachusetts: 54%
Michigan: 53%
Pennsylvania: 51%
Washington: 50%
Maryland: 48%
New Jersey: 48%
New York: 38%

Given these figures, it’s no surprise to learn that the No. 1 financial concern among small business owners right now is finding new customers, followed by inflation.  

"Small businesses continue to show grit and ingenuity in navigating this volatile economy," added Groves. "But they’re still facing real hardships. That’s why it's so important they continue to support one another with referrals, partnerships, and advice— and that all of us, from customers to policymakers step up and do our part – spending more money with local businesses and less with national online merchants and chains. At Alignable, we’re committed to standing beside small business owners — amplifying their voices and delivering smarter, AI-powered networking tools to help uncover new opportunities for them and strengthen their long-term resilience."

In Their Own Words

While statistics help illustrate the challenges small business owners face, the most powerful insights often come straight from the passionate entrepreneurs living through this economy day by day. Here’s a sample of their raw responses — capturing both their struggles and strategies to bounce back stronger:

“My daily sales are consistently higher — but my margins are tighter.”
“If not for consistent networking, I'd be in serious trouble this year.”
“Referrals and relationships are the only reason I'm staying afloat.”
“We are slammed with work — the demand is there, but labor is stretched thin.”
“I’m diversifying into experiences, not just products — and connecting with others doing the same.”
“There is a shift in the market. We’re teetering toward better times, but we’re not there yet.”
“We are down 50% in terms of the weddings we normally cater each year.”
“The moving industry is at a standstill — my sales are down substantially. If not for our strong referral base, we'd be in a bad place financially.”
“People want things done for nothing – and we can’t afford to do that.”
“Our customers are spending what they spent last year, but there are fewer of them coming into our store.”
“We're already in a recession — it's hit the wellness industry hard.”
“Still figuring it out. This economy continues to take a toll on my business.”
“Sales were down about 30% this year, but they’re just now starting to pick up again.”
“Consumers are careful how they spend. Impulse purchases are way down.”

These candid voices underscore just how complex — and personal — the current economic moment is for millions of small business owners. For more quotes or detailed data by state, industry or demographic group, contact Chuck Casto at chuck@alignable.com.

To review prior survey results, visit the Alignable News Center, which chronicles small business sentiment and trends over the past five years.