Small Businesses Navigating Economic, Political and AI Turbulence, New Report Finds

VistaPrint has today released the findings from its 2025 SMB Report, revealing that more than two-thirds (65%) of Australian small and medium-sized business (SMB) owners have faced difficulties in the first quarter of the year. However, the outlook remains upbeat, with half of SMBs (50%) describing their current feeling as optimistic, positive, excited, or uplifted.

With ongoing political, economic and technological shifts, SMBs are navigating a complex landscape. Inflation (43%) and the threat of a potential recession (38%) remain key concerns. Meanwhile, two-in-five (39%) business owners say that artificial intelligence (AI) has made it significantly (9%) or somewhat (30%) harder to stand out in the market.

Key Findings:

• The report reveals that despite a challenging start to 2025, half of Australian SMBs describe their current feeling as optimistic, positive, excited, or uplifted.
• Well over a third (38%) of Australian SMBs say the upcoming election will impact their business positively.
• 2-in-5 (39%) Aussie SMBs say AI has made it harder to stand out as a brand, but two-thirds (66%) say customer engagement and personalised branding can help.

SMBs Tackling Headwinds with Optimism and Pragmatism

As is often the case, Australian SMBs are confronting challenges with a mix of stoicism, resourcefulness and optimism.

With 2025 being an election year in Australia, around two-in-five (38%) SMBs expect the upcoming vote will have a positive impact on their businesses, while more than a quarter (27%) foresee no major changes. In terms of the broader global political landscape, nearly half (48%) feel very prepared (13%) or somewhat prepared (35%) to deal with international and domestic political shifts. Only 11% said they felt unprepared.

The sentiment around AI, despite concerns, is not entirely negative. Nearly two-in-five (37%) SMBs are very optimistic (10%) or somewhat optimistic (27%) about the role AI will play in their business in the near future.

Crowded, Murkier Waters Making it Difficult to Stand Out

AI and social media are complicating the branding landscape. In addition to concerns about AI making it harder to stand out, an even greater proportion of SMB owners (44%) believe social media has the same effect.

Among those concerned about AI, the top three reasons cited were the lack of human touch (26%), data privacy and security risks (21%), and the accuracy of AI-generated information (21%).

An overwhelming 62% believe AI-generated content is already, or will soon become, dominant across social media and other media channels. Nearly half (48%) say this content makes it increasingly difficult to compete for share of voice.

Branding and Personalisation a Silver Bullet

Despite the noise, SMBs are leaning into customer engagement, authenticity, and personalised branding as their key differentiators. Two-thirds (66%) say these strategies are crucial in standing out amidst the rise of AI-generated and social media content. Authentic storytelling (35%) was the second most popular way to differentiate their brand.

Notably, physical marketing materials made the top three branding and marketing investments SMBs plan to focus on in 2025, alongside digital marketing and social media.

Marcus Marchant, CEO of VistaPrint, commented on the resilience of Australian SMBs:

“Despite the challenges facing small businesses in 2025, it’s encouraging to see that optimism remains strong. SMB owners are resourceful, and they recognise that strong branding, personalised engagement – particularly the use of physical marketing materials that leave a lasting impression – and authenticity, are key to standing out in today’s evolving landscape. At a time of rapid change, businesses that embrace adaptability and innovation will continue to thrive.”

Marketing and branding are top priorities for SMBs in the current landscape, with almost two-in-five (38%) placing extreme (9%) or high (29%) importance on these as drivers of success.

When it comes to building brand trust, SMB owners believe the most effective strategies include providing great customer service, being transparent about practices, and consistently delivering a high-quality product or service. Partnering with influencers ranked lowest in effectiveness.

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