NEXT Insurance, a leading digital insurtech company transforming small business insurance, today released findings from its latest survey of 500 U.S. small business owners. The data highlights persistent economic challenges, with inflation and labor shortages emerging as primary stressors for entrepreneurs in 2025 and what SMB insurance agents need to know to keep up.
Key Findings:
- Inflation Remains a Major Concern: 62% of small business owners identified inflation as their top stressor, a slight decrease from 68% in 2023, yet still the leading concern.
- Reduced Consumer Spending: 43% of respondents expressed anxiety over decreased consumer spending, reflecting ongoing demand uncertainty.
- Labor Shortages Intensify: Concerns about labor shortages have more than doubled, rising from 14% in 2023 to 30% in 2025, as businesses struggle to attract and retain talent.
- Challenges for New Entrepreneurs: Rising costs of goods and services (47%), changes in tax policies (37%), and workforce shortages (34%) are perceived as significant barriers to starting new businesses.
These external pressures are heightening the insurance confidence gap for owners during a time when tailored insurance coverage could help alleviate concerns. The survey found that while 92% of SMB owners reported having insurance coverage:
- Only 13% of those covered feel fully prepared for risk
- Just 14% have insurance customized for their specific business needs
- 69% struggle to understand coverage, limits and policies
“Small business owners are demonstrating remarkable resilience amid economic headwinds,” said Chris Rhodes, President & Chief Insurance Officer at NEXT Insurance. “This data underscores the importance of providing accessible, tailored insurance solutions to help these businesses navigate their specific needs and protect their operations during times of market volatility and overall uncertainty.”
For more information and to access the full findings, click here and here.
Stay Ahead of the Financial Curve with Our Latest Fintech News Updates!
