The big concerns of small businesses
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Inside Indianapolis-based masonry engraving business Ceramica. Photo: Courtesy of Ceramica
As Indiana celebrates Small Business Week, the confidence of entrepreneurs across the nation is waning.
Why it matters: The formation and growth rates of small businesses are strong indicators of overall economic sentiment in an area, meaning owner attitudes can cast a large shadow.
- Plus: The continued presence of local companies you can't find anywhere else is part of what helps Indy stand out as a top destination.
Driving the news: The latest U.S. Chamber of Commerce index illustrates just how much economic difficulties and tariff worries are weighing on the business world right now.
- Researchers surveyed 755 small business owners between Jan. 28 and Feb. 14 as well as operators who run companies with 500 or fewer people.
- The index fell to 62.3 in the first quarter of 2025, down from 69.1 the last quarter of 2024.
- A higher score indicates more positive sentiment, with 100 being the best possible score.
By the numbers: 66% of small business owners say they are comfortable with their cash flow, down from 72% in Q4 2024.
- 58% cite inflation as a top concern, its highest level since tracking began in 2021 and a 6 percentage point increase from this time last year.
What they're saying: "There was tremendous optimism that the election would sweep in measures and policies that would lower costs," says Tom Sullivan, vice president of small business policy at the Chamber of Commerce.
- "Not only do small businesses not believe that's happened, but the uncertainty, specifically around tariffs, has led [them] to believe that inflation isn't going down."
Yes, but: The Midwest is the most confident region, with an index of 63. The West has the lowest index, at 61.8.
State of play: Indiana is home to more than 569,500 small businesses that support more than 1.2 million jobs, according to the Indiana Economic Development Corp.
Zoom in: For Zack and Shana Light, husband and wife co-owners of Indianapolis-based masonry engraving business Ceramica, the key to maintaining confidence amid uncertainty is adapting to the conditions without losing their identity.
Flashback: Zack Light's grandfather founded Ceramica in 1988. It got its first big break in 1989 when it was chosen to lead production of the Indiana Basketball Hall of Fame's engraved fundraising pavers.
- Over the years, they've done projects for the Indiana War Memorial, Indianapolis Zoo, St. Vincent Women's Hospital, Bartholomew County Veterans Memorial and more.
On tariffs, Shana Light said about 80% of the business is focused on the use of domestic materials, making it less of a concern for them compared to other business owners.
- But the 20% that focused on imports was a fast-growing arm that has lost reach in recent months.
- Zack Light said a bigger focus is for them rising employment and labor costs.
- "If I'm gonna have to put money somewhere, I'd rather it be the people that work for us," he said.
- "It does allow us to kind of put more investment behind our employees," Shana Light added. "As they learn more and become more skilled craftsmen or better designers, we can reinvest in them and push them forward as individuals."
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