Chicago-area small and mid-sized businesses are moving forward with growth plans in 2025, according to Bank of America's latest Business Owner Report. Nearly three in four business owners anticipate revenue increases over the next 12 months, with many preparing to expand operations, add staff, and pursue new financing arrangements.
Digital transformation leads the strategic agenda. Nearly all business owners plan to adopt digital tools within five years, with more than half planning to accept additional forms of digital payment and 50% planning to implement artificial intelligence. The priority, according to the report, lies in automating repetitive tasks such as scheduling, invoicing, customer service, and inventory management—a move that addresses labor constraints affecting more than 60% of surveyed companies. However, expansion of digital capabilities requires parallel investment in cybersecurity infrastructure to protect customer data and maintain business trust.
Local event engagement represents another avenue for growth. Over half of business owners have adjusted operations around major events including sports games, concerts, and festivals, deploying targeted promotions and sponsorships to capture customer attention. The Bank of America Chicago Marathon alone generated nearly $756 million in economic impact during 2025, with spending flowing through hotels, restaurants, retail, and transportation sectors. Smaller regional events and street fairs also create measurable returns. Approximately half of businesses that participated in event-related campaigns reported increased sales, and nearly half saw social media growth. Roughly four in five plan to repeat these efforts, suggesting sustained confidence in the strategy.
Cash flow management remains a central concern. Nearly 90% of entrepreneurs report that inflation is affecting their business, prompting price adjustments and closer scrutiny of spending. Supply chain pressures compound the challenge: 75% of business owners face sourcing difficulties, leading many to explore local sourcing alternatives and restructure supply chains for resilience. Business owners are reassessing loan structures with financial advisors to ensure alignment with current interest rates and cash flow realities.
Long-term planning increasingly focuses on capital strategy and succession. Eighty-three percent of business owners plan to secure financing within the next 12 months to support growth, hiring, and capital investments. Yet succession planning lags: 40% of owners have not formalized a succession plan. Advisors recommend identifying successors, documenting governance processes, and tracking financial metrics such as margins and recurring revenue while consulting early with bankers, accountants, and attorneys.
