« One of the things that stood out to us was the drop in confidence, especially as we look at this year versus last year, » a marketing expert told Newsweek.
Economic uncertainty coupled with diminished returns on wide-ranging marketing efforts are stifling growth and not leading to desired revenue goals, a new survey of thousands of small businesses around the world shows, as nearly half of respondents said they have raised prices in response to U.S. President Donald Trump’s tariffs.Why It Matters
Trump’s tariffs, under emergency powers law, were last Friday ruled illegal by a U.S. appeals court. They have been touted by Trump and his allies who have used them in negotiations to press traditional allies, including the European Union (EU), Japan, India and others—aimed in the long term to bring tens of billions of dollars into the U.S. Treasury and offset sweeping tax cuts signed into law on July 4.
Many consumers are feeling the pinch, however, as various businesses are passing higher costs to customers. The general lack of knowing how long tariffs will remain in place has caused some business owners to completely rethink their strategies just to remain viable.What To Know
Published on Wednesday morning, the report, The State of Small Business Marketing, showed a growing gap between the effort small businesses are putting into marketing and their confidence that those efforts are driving meaningful business results.
About 2,500 businesses in the U.S., Canada, Australia and the United Kingdom were surveyed by Constant Contact, a provider of digital marketing tools for small businesses and nonprofits.
Among them, fewer than 1 in 5 small businesses (18 percent) reported feeling « very confident » about the impact of their marketing efforts—down from 27 percent in 2024. Another 17 percent of respondents said they feel « very prepared » to adapt to economic uncertainty and pressures that are out of their control.
« One of the things that stood out to us was the drop in confidence, especially as we look at this year versus last year—the drop in small business confidence was certainly notable », Smita Wadhawan, chief marketing officer at Constant Contact, told Newsweek via phone.
