How Small Businesses Are Using Marketing and Tech to Thrive

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The world of small business is constantly changing. Today, a new wave of entrepreneurs is navigating an incredibly challenging environment with perseverance and optimism.

Global insights from Constant Contact's latest Small Business Now report reveal a clear trend: Even as the economic future remains uncertain, early-stage businesses aren't just surviving—they're strategically positioning themselves for long-term success.

By adopting technology, streamlining their marketing strategies, and prioritizing their customer relationships, these business owners demonstrate that resilience and flexibility are key to thriving in today's market.

Finding Stability & Thriving in Uncertainty

The current economic climate is anything but easy: Inflation, shifting consumer habits, and rising expenses pose massive hurdles. Instead of shying away, new entrepreneurs are diving in with one clear priority: building strong customer relationships.

To do that, these new business owners revealed their primary marketing channels, highlighting a dramatic shift in marketing trends:

63% of new entrepreneurs rely on social media as their primary marketing tool, but as their businesses grow, they're diversifying.
A surprising 33% now view email marketing as an untapped goldmine for conversions and customer loyalty.
As a result, more small businesses are expanding their media mix to include more direct engagement channels, such as email and SMS, recognizing their potential to create deeper customer connections.

The growing impact of technology also speaks for itself: 91% of new small business owners report that tech has played a key role in their success, and 72% plan to use AI in their marketing efforts this year.

In today's landscape, technology isn't just an advantage, it's a requirement for business growth.

The SMB Mindset for 2025: Optimistic Yet Realistic

Entrepreneurs are optimistic about the future but also mindful of the challenges ahead.

Although 45% of small business owners anticipate growth this year, many acknowledge the roadblocks, including 35% who cite economic reasons as a primary concern. Customer acquisition challenges and increasing costs remain top challenges, but small businesses continue to prove their resilience.

When looking back at their journeys, these new business owners weren't rocked by the challenges of starting a business. Although 52% acknowledge the difficulties they faced, 95% would choose to repeat the experience. Their optimism is evident: 71% express excitement for the future and 57% take pride in their achievements.

The entrepreneurial spirit remains strong, and every day it continues to attract new people to take the dive into small business ownership despite the initial struggles.

Expanding the Marketing Playbook

Social media remains one of the top marketing tools for most new small businesses. However, an increasing number of entrepreneurs are branching out into email and SMS marketing to deepen customer engagement.

Fully 33% of SMB owners recognize email marketing as a neglected tool with significant potential for customer retention and conversions.
Despite its proven effectiveness, only 15% of small businesses currently invest in SMS marketing, missing out on one of the most interactive and direct channels.

But why are email and SMS so important?

Social media platforms are essentially rented land—you're at the beck and whim of any algorithm change, outage, or shift in focus, and so are your followers. Consider the potential TikTok ban; if the platform goes away, so do your followers. So, keep using social media for your marketing; it has a broad reach and can help you keep a pulse on customer feedback. But also have a plan to build your owned channels and audience so you aren't impacted as heavily by the ever-evolving changes of the social landscape.

Expanding your marketing playbook to prioritize more owned channels is critical. Social media might be popular for convenience and affordability, but email and SMS offer higher conversion rates and stronger customer loyalty—two measures of lasting success.

AI & Tech: The Small Business Growth Engine

Technology is no longer optional—it's a competitive advantage. New small businesses are adopting AI at record numbers, with 91% agreeing that tech has been a growth driver for their businesses.

Fully 72% of SMB owners plan to use AI in their marketing efforts this year, and here's how they're doing it:

37% for content creation
32% for customer data analysis
31% for personalized marketing experiences

It's more than automation. Today's AI-powered tools empower these early-stage businesses to make smarter, data-driven decisions and form deeper customer connections.

As 38% of business owners plan to learn new marketing strategies this year, it's no surprise that AI is emerging as an essential tool for overcoming challenges, including customer acquisition and sales growth.

Pointing to tech-enabled advantage, the report showed a close link between confidence in AI and business optimism. In fact, 41% of high-confidence entrepreneurs plan to apply AI for data analysis, compared with just 25% of others.

Innovation: The Key to Success in 2025

As the year continues to unfold, newer entrepreneurs are refining their strategies, implementing new technologies, and staying customer-centric. These businesses show that adaptability is the key to long-term success, even in an unpredictable economy.

For small business owners, the takeaway is clear: Stay flexible, keep innovating, and continue engaging with your customers.

The businesses that will thrive in 2025 embrace smart marketing, leverage technology, and remain resilient in the face of change.

Research Methodology: Constant Contact's Small Business Now report surveyed 1,600+ small business owners with less than 100 employees and in operation for five or fewer years across Australia, New Zealand, Canada, the United Kingdom, and the United States. Statistics from each region were aggregated to determine global trends. The survey was conducted by Ascend2 Research in late 2024.