Read our full analysis for a more in-depth look at these trends.
Small Business Checkpoint: Holiday gains, hiring freeze
The holiday boost kept small business profits positive in November, but growth and hiring has slipped amid rising cost pressures.
December 2025
Key takeaways
- Small business profits stayed positive in November, supported by events like Small Business Saturday, which owners estimate accounts for 20% of annual sales. However, year-over-year (YoY) profitability growth fell below zero for the first time in 18 months, signaling pressure despite seasonal gains.
- The share of small business owners raising prices jumped 13 points to 34% — the largest monthly rise in National Federation of Independent Business survey history. This suggests businesses are passing on tariff and inflation-related costs. Wholesale trade, especially durables like electronics and furniture, registered the steepest profitability declines.
- Payments to hiring firms fell 4.6% YoY in November, according to Bank of America small business account data — confirming a weaker small business job market. Still, optimism on next year was up, while AI adoption dominates the outlook for the next five years, according to the 2025 Bank of America Business Owner Report.
Small Business Checkpoint is a regular publication from Bank of America Institute. It aims to provide a real-time assessment of small business spending activities and financial well-being, leveraging the depth and breadth of Bank of America’s proprietary data. Such data is not intended to be reflective or indicative of, and should not be relied upon as, the results of operations, financial condition or performance of Bank of America.
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