Massachusetts Small Businesses Are Focused on Growth but Continue to Face Hiring and Capital Challenges, New Survey Finds
Businesses owned by entrepreneurs of color are newer, more growth-oriented, and face greater barriers to capital and workforce stability.
Small business leaders across Massachusetts are looking to grow their businesses and strengthen their operations, but many continue to face challenges hiring workers, accessing capital, and navigating policy impacts, according to findings from the 2025 Massachusetts Small Business Survey.
The survey was conducted by The MassINC Polling Group on behalf of the Coalition for an Equitable Economy (CEE) and reflects responses from 1,049 small business leaders across the Commonwealth. This is the fourth wave of the survey since 2020 and provides an updated snapshot of priorities, pressures, and opportunities shaping the state’s small business economy.
Small Businesses Are Looking to Grow
Across the state, small businesses report strong interest in growth, with increasing sales, finding new customers, and strengthening marketing and online presence among their top priorities. These goals are especially pronounced among Black and Latino-owned businesses, which are more likely to be newer and smaller and are actively positioning themselves for expansion.
White-owned businesses, which tend to be larger and more established, are more likely to report plans for leadership retirement or ownership transitions, signaling an upcoming wave of business sales and succession planning across Massachusetts.
Hiring Remains Difficult Despite Stabilizing Conditions
While business conditions have improved since the height of the pandemic, hiring remains a challenge for many employers. More than half of small businesses report difficulty filling open positions, even as some pressures have eased compared to previous years.
High costs of living and housing continue to limit the available workforce and put pressure on wages, making it harder for small employers to compete for talent.
Access to Capital and Policy Impacts Continue to Shape Business Decisions
Access to capital remains a top concern, particularly for Black, Latino, and AAPI-owned businesses, which are more likely to be seeking funding for equipment, expansion, hiring, and operating costs. While loan approval rates have improved somewhat, disparities persist, especially for newer businesses.
At the same time, many businesses report negative impacts from federal policies, including tariffs and immigration enforcement. These pressures are contributing to higher costs, supply chain disruptions, and workforce instability. Even as challenges persist, entrepreneurs of color are leading adoption of tools like artificial intelligence, using them to support marketing and business operations and viewing them largely as an opportunity for growth.
About the Survey
These findings are based on a statewide survey of 1,049 Massachusetts small business leaders, fielded from September 5 to October 13, 2025. The survey was conducted online and distributed through MassDevelopment, the Coalition for an Equitable Economy, and partner organizations. Results were weighted using U.S. Census and Small Business Administration data to reflect the state’s small business population.
The survey was conducted by The MassINC Polling Group on behalf of the Coalition for an Equitable Economy, with sponsorship from MassDevelopment and the Eastern Bank Foundation.
