Despite persistent economic uncertainties, an overwhelming 95% of U.S. entrepreneurs are confident their businesses will grow in the next year, actively pursuing fundraising, strategic transactions, and AI investments, according to a new Ernst & Young (EY US) study.
Why it matters: This optimism from business leaders, detailed in the biannual EY Entrepreneur Ecosystem Barometer, offers a key signal for the broader economic outlook and highlights emerging opportunities for consultancies. Even as 43% of entrepreneurs state the current economy is detrimental to their business, their proactive growth strategies suggest a resilient and adaptive private sector.
The big picture: The survey of 500 entrepreneurs (with $1M+ annual revenue, conducted March 31-April 11, 2025) found that economic uncertainty (including interest rates, inflation, tariffs) and regulatory/policy changes are their top concerns, each cited by 38%. Despite these challenges, 73% reported revenue growth in the past year—with 29% seeing growth of 20% or higher. This is slightly down from the 76% who reported revenue growth in EY's November 2024 survey.
What they're saying: "Entrepreneurs are the backbone of the US economy, so their optimism offers a powerful indicator about what's ahead for 2025," said Anna Horndahl, EY Americas Entrepreneur Of The Year™ Co-director. "Based on our EY survey, despite economic uncertainty, entrepreneurs are forging ahead, remain resilient and continue to drive growth."
Zoom in: Entrepreneurs are not just optimistic; they are actively positioning for growth through several key strategic shifts.
- Capital Raising: While 95% plan to raise capital in the next 18-24 months (up from 91%), fewer are aiming for large rounds of $10 million or more (19%, down from 30% in fall 2024). There's also a significant drop in reliance on debt, with only 36% taking it on, compared to 45% previously, potentially signaling stronger internal financials.
- Strategic Transactions: Interest in M&A, IPOs, or private sales has surged. 81% are now considering such transactions (up from 72%), with 51% in early planning stages (up from 33%). Motivations are varied, including gaining new market access (19%), securing capital (18%), and acquiring technology or talent (17%).
- AI Investment: Artificial intelligence is a top priority. 40% cited investing in automation and AI as their primary strategy for building resilience. AI and machine learning technologies are a top-three budget priority for 42% of entrepreneurs, with 34% using AI to help hire talent and 63% reporting that finding qualified talent is now easier. Notably, only 2% are not using AI in workforce decisions.
What to watch: The extent to which AI adoption translates into measurable productivity gains and competitive advantages will be a key area to monitor. How entrepreneurs balance their growth ambitions with ongoing economic and regulatory headwinds, particularly in their approach to fundraising and M&A execution, will shape the business landscape in the coming year. The study also highlighted female entrepreneurs placing a greater priority on re-skilling existing teams (47% vs. 39% overall), a trend that could influence broader talent development strategies.
The EY Entrepreneur Ecosystem Barometer survey may be viewed here.
SOURCE: Ernst & Young
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