Most small business owners say they are anticipating growth in 2025, and the fast-paced rate of new business formation in the U.S. is expected to continue this year.

Read on to see what industry forecasters and small businesses are talking about — from the hottest new startup ideas to the latest tech trends.

New Business

Entrepreneurs will start as many new businesses in 2025 as last year, according to U.S. Census Bureau forecast data.

New business formation this year is projected to show a continued trend of elevated levels compared to pre-pandemic times, the agency says.

Ranking high on everyone's list of ideas for new startups are businesses that provide personalized products and services for pets, including startups offering on-the-go expertise and services in pet training and animal behavior.

The booming pet industry is estimated at more than $150.5 billion in the U.S., with the dog training services market forecast at over $820 million by 2026. Other fast-growing business categories in the sector include pet bedding products, as well as natural foods and treats. 

Per-household spending growth in the pet industry could reach 7 percent annually by 2030, reports research by Morgan Stanley. The expected growth outpaces nearly all retail subsegments and is one of the largest rates of return of any retail sector, says Morgan Stanley retail analyst Simeon Gutman in a recent press release.

More than 126 million U.S. households own pets, including 58 million with dogs and 40 million with cats, says the American Pet Products Association (APPA), driving continued demand for eco-friendly and specialized products and care services.

AI Tech

Emerging technologies such as AI and metaverse are dominating tech trends this year for small businesses.

AI use is expected to grow and expand in 2025 as small business owners find ways to best implement the technology and work on defining their strategies.

"Those with more mature AI strategies will move toward end-to-end automation of entire business processes," predicts futurist and author Bernard Marr in a blog for Forbes.

"This is likely to take place across logistics, customer support and marketing, where algorithms will make decisions such as how to manage inventory or how to respond to customer inquiries with minimal human intervention," writes Marr.

A report released in December by online marketing company LocaliQ showed 60 percent of small businesses surveyed using AI capabilities for their business — 52 percent for content creation, 39 percent for social media management and 34 percent for chatbots.

Also, keep an eye out for how entrepreneurs and new businesses are using AI this year. Research indicates they are more inclined to experiment with the technology. Learn what they're doing here.

Expected Growth

The majority of small business owners are expressing confidence in the U.S. economy and expect growth for their companies in 2025.

More than 60 percent (63 percent) of small business owners told a survey in November (post-election) they believed the economy would improve over the next year, an increase of 27 points from the previous month, according to the Wall Street Journal/Vistage Small Business CEO Confidence Index.

Further, 92 percent of small business owners say they anticipate moderate to significant growth in the next six months, an optimism particularly pronounced among immigrant-owned and veteran-owned businesses, says the OnDeck + Ocrolus Small Business Cash Flow Trend Report for Q3, which cited survey results.

"Almost 97 percent of veteran-owned businesses are expecting growth, a significant confidence boost, up from 85 percent last quarter," the survey says.

Social Media

Digital marketing experts and industry observers predict more small business owners will view social media as a means to bolster objectives in several areas, including customer care, brand promotion, and marketing and advertising campaigns.

Small businesses are investing in social media to find potential customers and clients, and that trend will continue, according to the Small Business Trends Report for 2025 from LocaliQ and Localiq. TikTok, Facebook and Instagram are top platforms for social ads, the report says.

"TikTok has also become the fourth top search engine as Gen-Z uses it for search more than Google. If you want your small business to flourish, invest in social media apps to get customers," proclaims Arooj Ahmed in a Digital Information World post that cites the trends report.

Further, small businesses will look to social media to help improve their customer care. Learn why social media platforms are integral to boosting customer experience.