Hot business trends in 2024 that will continue to shape 2025

Steve Bernas

As we stride confidently into 2025, small businesses are navigating an exciting, challenging, and ever-changing landscape filled with challenges, opportunities, and groundbreaking innovations. The advancements in Artificial Intelligence (AI), the critical importance of cybersecurity, and the evolution of dynamic workplace cultures have all set the stage in 2024 for transformative growth and resilience.

AI — The catalyst for efficiency and innovation

Technology never rests, and AI has proven to be a game-changer. Businesses leveraged AI to supercharge efficiency, content creation, and problem-solving capabilities. However, many are still navigating how to harness its full potential.

In 2024, companies began to experiment with AI-driven customer insights, personalized marketing strategies, and process automation to fuel growth. As AI adoption surges, businesses must find scalable strategies to integrate these tools and stay competitive.

After navigating websites, apps, digital marketing aimed with different messages to different customers, it may take a while, but there is little doubt resilient business owners will be wise adapters of new technologies that serve them well.

Cybersecurity — The shield against growing threats

Cyberattacks skyrocketed in 2024, targeting businesses of all sizes. While big brands made headlines, small businesses faced mounting vulnerabilities. With 60% of small businesses prioritizing digital security, as reported by the U.S. Chamber of Commerce, affordability remained a key obstacle. Cyber resilience emerged as a cornerstone strategy, blending proactive defense measures with innovative tools to protect sensitive data and financial assets.

Cultural shifts — A workforce revolution

The battle for talent took center stage as businesses prioritized workplace culture to attract and retain top performers. Employers expanded benefits, including flexible work arrangements, performance incentives, mental health resources, and retirement perks. These strategies fueled employee satisfaction and loyalty, curbing costly turnover and boosting productivity.

Entrepreneurial resurgence — Smarter, leaner startups

Small businesses continued to lead America’s economic revival, with the Small Business Association reporting a surge in startup applications. Monthly applications averaged 430,000 — a 50% increase from 2019 — with 140,000 indicating plans to hire. This trend highlighted a shift toward agile, tech-powered startups leveraging lean operations and remote capabilities for rapid growth and adaptability.

Economic optimism despite uncertainty

While inflation and rising costs lingered, surveys showed small business owners remained optimistic about profitability in 2025. This resilience stemmed from diversified revenue streams, lean operations, and customer-focused strategies. Businesses adapted by embracing smarter spending and strengthening customer relationships to weather economic uncertainties.

Customer-centric strategies — The heart of resilience

In a competitive marketplace, exceptional customer service emerged as a winning differentiator. Businesses doubled down on delivering memorable experiences, resolving issues swiftly, and building community connections. This emphasis on relationship-building allowed smaller businesses to outshine larger competitors and foster long-term customer loyalty.

The path forward — Innovation meets adaptability

Notably, 2024 demonstrated that small businesses can thrive by embracing AI, fortifying cybersecurity, investing in employees, and prioritizing customer relationships. With an entrepreneurial spirit driving growth, the coming years promise even greater innovation, flexibility and success.

Prepare for 2025 — Stay agile and visionary

As we enter the New Year, the trends of 2024 provide a road map for navigating challenges and seizing opportunities.

Businesses poised for success will continue to innovate, adapt, and prioritize people in their strategies — turning bold ideas into tangible results.

• Steve J. Bernas is president and CEO of the Better Business Bureau and can be reached at [email protected].