Constant Contact has released its latest Small Business Now report, revealing that new small and medium-sized businesses (SMBs) are leveraging social media and technology to drive growth and navigate economic challenges. The study surveyed 1,600 SMBs across the United States, United Kingdom, Australia, and Canada that have been in operation for five years or less.
The report finds that social media is the dominant marketing tool for early-stage entrepreneurs. According to the study, 63% of new SMBs rely on social media as their primary marketing channel, and 73% of respondents said that both paid and unpaid social media posts are their biggest revenue drivers.
Despite this focus, many small businesses are looking to diversify their marketing strategies. 33% of new SMBs consider email marketing an underutilized tool, and only 15% leverage SMS marketing despite its strong engagement potential.
New SMBs are also turning to artificial intelligence (AI) to streamline operations and enhance their marketing efforts. The report found that 72% of SMBs plan to use AI for marketing in 2025, with AI being used for tasks such as content creation (37%), customer data analysis (32%), and personalized messaging (31%). Additionally, 41% of highly confident SMB owners are already using AI to analyze customer data.
“It’s difficult to be a small business right now, but what’s clear from our study is that the spirit, passion, and resilience of the SMB is still quite strong,” said Frank Vella, CEO at Constant Contact. “The newest entrepreneurs are digitally savvy, and they understand that adaptability isn’t just a survival tactic, it’s a growth strategy.”
While optimism is high, small business owners acknowledge ongoing challenges. Nearly half (45%) of new SMB owners feel very confident in their business growth for 2025, while 55% express concerns due to factors like customer acquisition, rising costs, and shifting consumer habits. Additionally, 35% believe economic factors will significantly impact their success in the coming year.
Despite these challenges, 95% of entrepreneurs said they would choose small business ownership again, with 71% expressing excitement and 57% feeling proud to be part of the SMB community.
Constant Contact’s findings highlight the adaptability of new entrepreneurs as they integrate social media and AI-driven technology into their growth strategies. As SMBs seek to expand their marketing efforts beyond social media, AI and automation are set to play a critical role in helping businesses remain competitive in an evolving economic landscape.
“By harnessing social media to enhance customer relationships and embracing advanced technologies like AI to maintain stability and work smarter, they’re turning challenges into opportunities and redefining what it means to thrive in any economic landscape,” Vella added.