As 2024 wraps up, we turned to an investment expert to see what could be ahead for small businesses in 2025. 

Thomas Jalics, a Chief Investment Strategist for Fifth Third Bank, says that things are looking up for small business owners in 2025. However, he does provide a small warning.  

With the inflation rate continuing to fall and unemployment numbers at near-record lows, Jalics says the economy is in good shape heading into the new year. “We are optimistic on the prospects of economic growth domestically in 2025.”

As unemployment remains low, Jalics cautions small business owners that finding employees could be more difficult than usual. “People who want jobs have jobs.” 

On the bright side, Jalics says other areas of the economy are promising. He says 68% of the US economy is driven by consumer spending, and consumer spending is driven by jobs. As long as employment stays high, spending should follow. 

Jalics says people are working and using their earnings to drive the economy forward. That means there will be more than enough opportunities for small businesses to grow in 2025.  

In addition, Jalics says that as the Federal Reserve continues to lower rates, businesses should have more access to capital to grow and expand, as long as they can find the workers to scale with them.