Poll: Small Business Optimism Falls Amid Tariff Concerns, Latino Businesses Experience Revenue Drop

Washington, D.C.— Small businesses’ confidence is down as concerns about tariffs increase, while Latino-owned businesses experienced a disproportionate decrease in both revenue and headcount in recent months, according to a new survey.

Voice of Main Street, a quarterly opinion poll of entrepreneurs in Small Business Majority’s network, which consists primarily of women- and BIPOC-owned businesses with fewer than 10 employees, finds that total optimism declined by 8% from the previous survey while total pessimism increased by 9% over the same period. 

Tariffs continue to be a major source of worry for small businesses, with 81% concerned about the impact of tariffs on their business. In response to tariffs, small businesses report that they have taken or are considering a number of steps, including price increases (31%) and delaying business expansion (27%). What’s more, 60% of businesses note higher costs due to increases in tariffs, with most saying costs have gone up between 10-25%. One-quarter (26%) of businesses surveyed import goods from other countries, while nearly half (45%) buy from American suppliers who import from other countries.

“We are looking to purchase packaging from outside the United States but have grave concerns about tariffs making our purchase more challenging, or even unattainable,” said Lisa Marsh, owner of MsPsGFree in Chicago. “Everything seems to have elevated prices, which makes it much more challenging to continue to run an emerging business. We are just surviving and need to get to thriving, but with all the uncertainty around the federal government's policies and consumers scaling back their spending, it is more challenging than ever to continue moving forward.”

Growing small business pessimism can be attributed to several factors over the past three months, including decreased business revenues for nearly half of small businesses (46%). In addition to declining or stagnant revenues for a majority of small firms, 67% report that business expenses have increased over the past three months, representing a 6% bump from the April Voice of Main Street survey. Costs stayed the same for 26% of small businesses and decreased for only 7%. 

Latino-owned businesses saw the largest revenue decline, with 62% noting a decrease in recent months. Furthermore, Latino-owned businesses saw the largest decrease in employee headcount, with 35% reporting a reduction. Declining headcount and revenue for Latino-owned firms correlates with increased immigration enforcement actions that could impact their employees and customers. 

Small business owners also weighed in on some of the major provisions in the recently passed One Big Beautiful Bill Act, which drastically increased the deficit and made significant cuts to Medicaid while offering major tax cuts for the largest corporations and wealthiest individuals. More than three-quarters (76%) of small business owners oppose the One Big Beautiful Bill Act’s cuts to Medicaid and its failure to extend expiring premium tax credits, which help make plans purchased through the Affordable Care Act Marketplace more affordable. Small businesses also disapprove (54%) of increasing the federal deficit to pay for tax cuts that benefit the wealthy and big businesses. 

“Although a small handful of the wealthiest entrepreneurs may be celebrating due to recently enacted tax cuts that primarily benefit the top 1% of businesses, we’re seeing a growing divide between haves and have nots in the small business community,” said Small Business Majority Founder & CEO John Arensmeyer. “Uncertainty and declining revenues caused at least in part by tariffs and immigration policies are a major cause of Main Street’s struggles and have made it almost impossible for small firms to plan for the future. Small businesses need certainty to succeed and they do not have it right now.” 

The third Voice of Main Street survey is a poll of 234 small business owners in Small Business Majority’s national network. Thirty-nine percent of respondents in the sample report business revenues of less than $99,000 while 55% identify as female and 40% identify as a race other than white. The survey was conducted between June 12-Aug. 1, 2025. The margin of error is +/- 6% at a 95% confidence level.

For the full report, please visit: https://smallbusinessmajority.org/our-research/voice-of-main-street/small-business-optimism-declines-amid-concerns-about-tariffs-healthcare-latino-owned-businesses-report-biggest-losses