Only half of small business owners have started exploring the use of artificial intelligence in their businesses, according to the August 2025 installment of the Main Street Business Survey, powered by the Freedom Economy Index. The survey, conducted by PublicSquare, RedBalloon.work, and the U.S. Christian Chamber of Commerce, found that the number-one concern among respondents is “rising costs,” reflecting stubbornly elevated inflation from the past several years.
Key findings from the survey include that 25% of respondents cite “rising costs” as their top concern, while 22% point to “declining consumer demand.” Only 12% say access to affordable capital is their primary issue. Despite ongoing economic challenges, small business owners are showing signs of cautious growth. “We basically have all the signs of an economy reemerging from a tough economic period,” said Michael Seifert, CEO of PublicSquare. “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.”
Regarding AI adoption, 45% of business owners report not using AI at all. Among those who do use AI, 32% say it is most helpful for marketing and advertising, followed by business operations (9.2%), customer engagement (7.9%), financial management (3.6%), and workforce management (2%). Notably, 26.6% of AI adopters say AI has reduced their staffing needs, indicating a significant impact on the labor market as adoption grows. “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.”
The survey also gauged opinions on Elon Musk and the Department of Government Efficiency (DOGE). DOGE received high marks, with 38.3% rating its performance as “excellent” and 37.6% as “good.” While 91% of business owners agree with Musk that the federal budget needs to be balanced, only 34% agree with his opposition to raising the debt ceiling. By a margin of more than 3 to 1, respondents say Musk’s plans for a new third party would be “bad for America’s economic future.”
The survey introduced the new State of Main Street Index, which debuted at 57 on a 100-point scale. A score above 50 signals positive momentum, and the August reading paints a picture of cautious optimism. The index draws from seven questions assessing current economic health, customer traffic, revenues, and forward-looking expectations for growth, inflation, and hiring over the next six months. “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.”
For full results, see the August Freedom Economy Survey.
