Zahir Khoja, CEO of Wave.
A microbusiness boom is underway, and I believe momentum is only going to grow as we head into a new year.
Just look at the list of the fastest-growing occupations compiled by the U.S. Bureau of Labor Statistics. Growth in renewable energy is driving a need for wind turbine technicians and solar panel installers. Analysts in data science and information security are in demand due to the proliferation of technological advancements across industries. Services in pet care and software development continue to create more jobs.
These are all areas where I believe entrepreneurs will create thriving microbusinesses. With ongoing advancements in technology, meanwhile, they could enjoy greater flexibility in how they work and be in a better position to compete against much larger entities.
Of course, 2025 will have its share of challenges, but there are four trends where I see reasons for small businesses to enter the new year with a sense of optimism:
1. Small-business owners master the art of using AI.
As I predicted last year, we’ve seen businesses shift from experimenting with artificial intelligence to relying on it as a core element of their daily workflow. For example, 72% of microbusiness owners are using generative AI to write content, and 46% lean on the technology to summarize information. Nearly a quarter (23%) of entrepreneurs even turn to AI for business advice.
A recurring question around AI adoption is where companies need to keep “humans in the loop” and review or intervene in AI outputs. As owners get more experience with AI tools under their belts and as the technology becomes more mature, I expect to see more microbusinesses treating AI like a trusted coworker and developing clearer policies on responsible and ethical use.
2. Mental wellness becomes a microbusiness priority.
Achieving a work-life balance tied with accessing capital funding is the biggest challenge for entrepreneurs, according to a 2024 survey of 537 small-business owners by the Hustle (registration required). Both were cited by 36% of respondents. This could be in part because 28% of people who took the survey are working as solopreneurs, an approach that offers greater autonomy but can also increase the risk of burnout.
My company’s research showed similar findings. We surveyed 1,087 U.S. business owners in January and February 2024, and 47% of digital entrepreneurs said they struggle with work-life balance. There is a growing number of online resources and events, such as those offered by Founder Mental Health Pledge, that are shining a spotlight on wellness, helping microbusiness owners better manage stress and build resiliency. Next year, I predict we’ll see convergence as the wellness industry grows alongside the general microbusiness landscape.
3. In-person connection will be critical for customer connection and relationship-building.
Video calls and chat messaging apps have been wonderful at reducing unnecessary business travel, but they are no substitute for seeing people, especially customers and clients, face to face. I predict that entrepreneurs will increasingly seek opportunities for in-person connection with their communities.
Event planners are preparing for the return of corporate events, with 59% predicting an increase in on-site meetings at a company’s headquarters and 60% expecting more in-person off-site meetings, according to a Cvent survey of more than 600 European event professionals. Similarly, microbusiness owners across many industries will likely be planning events, given that 80% of attendees say in-person events are the most trusted source of information and the top way to discover new products and services, per a Freeman survey of about 2,000 event attendees. (Registration is required for both reports.)
4. A new generation of entrepreneurs starts building businesses earlier.
Young professionals are quickly coming of age—and they’re full of ambition. One in five Gen-Z and Millennial business owners said they started their first company when they were students or unemployed. The same study said 56% learned about entrepreneurship online or via social media.
This is a tech-savvy group, where a third (33%) cited the tools they use as critical for navigating through the first few years of running their business. They may be even faster to capitalize on advancements in AI, while perhaps being more mindful about how they spend their time working versus pursuing fulfillment in their personal lives. Already, 66% of Gen-Z professionals say using AI at work positively impacts their skills.
Advice For Entrepreneurs
Take the next step by capitalizing on these trends to enhance your business and further your professional development. Identify a potential AI pilot project and put it in motion. Connect with a new entrepreneur and discuss opportunities to collaborate. Schedule some time to attend an in-person event with promising content and connections. Finally, make mental wellness a priority for yourself and your team.
For those who take the initiative and start the planning process early, 2025 could be a year of significant microbusinesses activity, where entrepreneurs create their own unique stories about what it takes to grow a successful company. No matter how small the business, you can expect big things to come.
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