New Survey: Small Business Slow to Adopt AI; They’re Unfazed by Tariffs; Concerned About Rising Costs; Have Mixed Opinions on Elon’s Plans

The August 2025 installment of the Main Street Business Survey, powered by the Freedom Economy Index, found that only half of small business owners have started exploring use of Artificial Intelligence (AI) in their businesses, while their number-one concern is “rising costs,” a reflection of the stubbornly elevated inflation from the past several years.

Key Takeaways:

1. High prices and soft demand top the worry list.

2. Tariffs? Minimal impact so far, modest worry about what’s next.

3. Main Street is moving from defense into cautious growth.

4. Hiring’s on the rise—but qualified talent is still elusive.

5. Only half have touched AI, leaving huge upside for adoption.

6. Elon’s still a fan favorite… unless he goes full third party.

7. Trump Administration gets high marks for handling of the economy

“We basically have all the signs of an economy reemerging from a tough economic period,” said Michael Seifert, CEO of PublicSquare, a leading small business online commerce platform and freedom-based payment systems provider. “Small business owners have lived through inflation, supply chain collapse, and mandates. They’re not looking for bailouts—they’re asking D.C. to get out of the way and let the free market work.”

“These business owners are making cautious investments in growth, which is a big change from a year ago,” said Andrew Crapuchettes, CEO of RedBalloon.work. “But persistent high costs and policy uncertainty slow investment decisions. Small business owners want stable rules of the game so they can make long-term bets—whether that’s AI, expansion, or hiring.”

“Businesses are resilient, and the free market is again poised to reward the risk-takers who dare to build and pursue their dreams,” added Krystal Parker, President of the U.S. Christian Chamber of Commerce. “But if high prices don’t come down, consumers will keep tightening their belts—and that slows everyone down.”

See the full results here.

Cost Increases, Reduced Traffic Top List of Concerns

25% of respondents said “rising costs” were still their top concern, and 22% said “declining consumer demand” was their #1 issue. 12% said access to affordable capital was the top concern.

AI Use - Room to Grow

45% of business owners said they are not using AI in their businesses. For those using AI, one-third (32%) say that “marketing and advertising” is where AI is most helping their business. 9.2% say “business operations,” 7.9% say “customer engagement,” 3.6% “financial management,” and 2% “workforce management.”

On staffing, 26.6% of AI adopters say that AI has “reduced” their staffing needs – indicating a significant impact on the labor market as AI adoption continues.

Is Elon’s 3rd Party a Charm?

The Department of Government Efficiency (DOGE) gets high marks with 38.3% saying DOGE’s performance was “excellent” and another 37.6% saying “Good.”

91% of business owners agree with Elon that the federal budget needs to be balanced, but only 34% agree with his opposition to raising the debt ceiling. And by better than 3 to 1, business owners say Elon’s plans for a new 3rd party would be “Bad for America’s economic future.”

New Measure of Small Business Health

Now in its 4th year of surveying America’s small business community with highly accurate results, the Freedom Economy survey also launched this month the new State of Main Street Index. Debuting at 57 on a 100-point scale, this innovative index draws from seven essential questions assessing current economic health, customer traffic, revenues, and forward-looking expectations for growth, inflation, and hiring over the next six months. A score above 50 signals positive momentum, and the August reading paints a picture of cautious optimism.

FEI Enters Its 4th Year

The State of Main Street Survey powered by the Freedom Economy Index (FEI) is a joint project of PublicSquare, RedBalloon.work, and adding for the first time the US Christian Chamber of Commerce. View the full results of the August Freedom Economy Survey here.

For more information, contact Isaac Lopez [email protected].