Tariff headwinds are causing a headache for many businesses with sprawling supply chains and large importers, yet small businesses continue to be optimistic — and fintech is taking note of the opportunity. According to the latest MetLife and U.S. Chamber of Commerce Small Business Index, optimism climbed to 72.0 this quarter, up sharply from 65.2. Small businesses are reporting stronger cash flow, improved views of both the national and local economies, and growing confidence in their ability to invest in the future. At the same time, inflation and rising costs remain the most pressing concerns, with nearly half of business owners citing them as the top barrier to growth.
Against this backdrop, investments in customer experience and software are becoming a top priority for entrepreneurs looking to grow and stay competitive. Survey findings show that 60% of small businesses investing in technology are putting money into business software, while more than a third are prioritizing AI.
The trend is driving expansion for cos like Honeybook, an AI-powered customer relationship management platform for small business owners, which today announced its acquisition of the founding team of Fine.dev, a startup specializing in AI-assisted coding and rapid application development. The move expands HoneyBook’s in-house AI expertise and accelerates its ability to deliver smarter, more personalized tools that help entrepreneurs save time and grow their businesses. The goal is to incorporate Fine.dev’s work in “vibe coding”—where AI translates ideas into functional apps in minutes—to fast-track new product capabilities for the workflows of service-based businesses.
As small businesses balance optimism with ongoing cost pressures, managing cash flow is becoming all the more critical for entrepreneurs. Today, Peter Renton dives into the lending side of the equation—and how AI is poised to transform the service for small businesses.
–The Editors
