In a Time of Tariffs and Turbulence, Financial Insight Is Helping Small Businesses Succeed

Doubt is surging for small and midsize businesses (SMBs) in America. In March, the National Federation of Independent Business reported that its Small Business Uncertainty Index hit its second-highest reading ever. Simultaneously, the organization’s Small Business Optimism Index dropped, signaling that SMBs are increasingly wary about the economy.

Other economic indicators are also pointing to a lack of confidence. Business owners are concerned about the potential for tariffs to impact their costs and prices, with 76% of CEOs surveyed by Chief Executive magazine reporting that the policies will hurt their enterprises. With immigration closely connected to labor costs, SMBs are also keeping a cautious eye on immigration policy.

SMBs comprise the backbone of the country’s economy, accounting for the vast majority of firms in the United States and employing a large share of the American workforce. When SMBs struggle, the effects are felt across industries, communities and local economies.

“The uncertainty we face in the economy has no set timeline,” says Mark Valentino, Head of Business Banking at Citizens. “The path to success begins with knowledge and sound advice.”

Despite the prevalent unease among business owners, a changing economy doesn’t spell disaster for SMBs. Businesses that use financial tools and advice typically report better outcomes and are better positioned to succeed regardless of the economy.

According to the Citizens 2025 Business Survey, SMBs that prioritize financial advice and data are nearly twice as optimistic about their five-year growth compared to those that don’t.

What sets these optimistic businesses apart is their commitment to leveraging financial insight. They use financial tools with a clear view of company financial data and lean on expert advice—not guesswork—to guide decisions. In a climate shaped by rising costs, shifting policy and global trade uncertainty, such a proactive mindset is essential.

According to Valentino, insight-driven SMBs take key steps to managing their business finances:

• Monitoring cash flow proactively, identifying shortfalls before they become crises and maintaining strong relationships with vendors and customers. ​​According to Citizens’ survey, 53% of businesses prioritizing financial advice and data-focused tools are prioritizing cash flow in 2025 compared with only 38% of other companies.
• Diversifying funding sources offered by their bank, applying for grants, loans and alternative financing models recommended by their banker in order to stabilize and grow their ventures.
• Investing in their teams, offering training and development opportunities to support their staff and create a motivated workforce.
• Integrating technology and centralized software, using connected platforms for accounting, cash management and payments to enhance efficiency. The survey found that 48% of businesses that prioritize financial advice and data will start using new tools for cash management this year—an adoption rate five times that of other companies.
• Planning for the future, identifying potential successors and preparing them for leadership roles to ensure business continuity—a task that is especially important for family businesses. Businesses relying on advice will lean even more heavily on counsel in 2025, with the vast majority saying they will use expert input to create a succession plan.

Business owners who embrace the proactive tactics identified by Citizens’ survey aren’t pulling back in the face of economic uncertainty—nor should they.

In 2025, the most successful SMBs will be those that focus on controllable factors—elements of their business that they can influence, even in an unpredictable economy—from harnessing financial tools and advice to make more informed decisions to gaining a clear understanding of critical financial documents and planning for business succession.

It’s especially critical for SMBs to consult with professionals—including bankers and tax professionals—to identify trends and opportunities for growth, Valentino says. Working closely with financial advisors not only supports business expansion, but also helps create a more positive outlook for the business by allowing its leaders to anticipate challenges and adapt swiftly.

“Financial insights help business owners monitor cash flow closely, plan for potential shortages, and maintain strong relationships with customers and vendors,” Valentino says.

“It's crucial for businesses to continue their operations and not risk losing momentum.”

As uncertainty rises, so too does the value of expert advice and integrated tools. The businesses that consistently prioritize financial insights and strategic planning today are better equipped to endure and even thrive during uncertain times—and better positioned to become tomorrow’s leading enterprises.