Small Business Insights: January 2025
As the year begins, small business owners are taking stock of where they stand—particularly when it comes to hiring, revenue, and growth. The latest Intuit QuickBooks Small Business Index provides a snapshot of how the U.S. small business economy performed in December 2024, offering valuable context for the months ahead.
Employment Trends: A Slight Dip in Jobs
According to the Index, small business employment declined modestly in December:
Down 4,400 jobs (-0.03%) from November, with 13.13 million people employed across U.S. small businesses.
10 of 12 sectors saw decreases in employment. The largest decline came from education and health services (-3,500 jobs).
The Southwest region and Oregon reported the sharpest contractions, at -0.16% and -0.34%, respectively.
While the overall dip is small, it reflects a cooling in certain service industries that had been growing steadily earlier in the year.
Revenue Growth: A Positive Upswing
Despite the slowdown in hiring, small businesses posted strong revenue growth in December:
Monthly real revenue increased 3.73%, averaging $52,170 per business.
11 of 12 sectors reported higher earnings, led by agriculture, natural resources, and mining (+8.24%).
Every U.S. region saw gains, with New England topping the list at +6.17%.
This data suggests that while hiring is tightening, productivity and profitability remain healthy—a sign that many small businesses are adapting efficiently to changing market conditions.
What This Means for Business Owners
For small and midsized companies, the takeaway is clear: maintaining accurate financial data and flexible forecasting models is more important than ever.
At One 8 Solutions, we help business owners interpret economic shifts like these through a financial lens—providing outsourced controller accounting, bookkeeping, and advisory services that turn real-time numbers into actionable insights.
If you’re looking to understand how trends in employment and revenue could affect your business’s cash flow, staffing, or growth strategy, our team can help you plan with clarity and confidence.
Schedule a conversation to discuss how your business can stay financially resilient in 2025.
