3 Challenges Entrepreneurs Will Face in 2025 — and How They Can Overcome Them Geopolitical and economic conditions may bring uncertainty in the year ahead, but they also open doors for entrepreneurial businesses to access global markets and talent.

By John Caplan Edited by Chelsea Brown

Key Takeaways

  • There are three notable challenges — geopolitical, economic and talent-related — that will test entrepreneurs in 2025.
  • However, with the right strategies and tools, leaders can turn these challenges into opportunities.
  • Entrepreneurs who embrace global operations and adapt to change will emerge as the most profitable and victorious.

Opinions expressed by Entrepreneur contributors are their own.

Entrepreneurs drive the global economy. Firms with fewer than 500 employees make up 90% of businesses worldwide, employ most of the workforce and fuel innovation. However, they face significant challenges that can feel overwhelming without the right tools and strategies.

In 2025, three obstacles will test entrepreneurial businesses everywhere — and those who act decisively will turn these challenges into opportunities.

Related: What Every Entrepreneur Should Prepare for in 2025 — These Trends Could Make or Break Your Business

1. Geopolitical conflicts disrupt supply chains but unlock opportunity

In an interconnected world, geopolitical tensions can disrupt even the most well-oiled supply chains. A change in trade or tariff policy or a distant conflict can suddenly delay shipments, raise costs or reduce customer demand. These disruptions hit SMBs harder than large corporations because entrepreneurial businesses often operate with tighter margins and fewer resources.

Businesses can't control global politics, but they can build resilience. Diversifying suppliers and markets is essential. Relying on a single country or vendor leaves your business vulnerable. Spread risk by building a network of suppliers across different regions and exploring new trade corridors. This approach also opens doors to new customers and revenue streams.

With a new U.S. presidential administration coming in 2025, changes in trade policies and regulations are likely. SMBs in all markets can prepare by investing in strategies that protect against specific risks in key markets and by using digital platforms to monitor and adapt to trade shifts. Flexibility is your greatest ally in navigating global uncertainty.

2. Dynamic economic times require the best tools

Economic turbulence brings currency fluctuations, inflation and rising interest rates — all of which increase costs for cross-border transactions. For SMBs, these financial pressures can erode profits and complicate operations.

The solution lies in technology. Cross-border payment platforms designed for SMBs simplify transactions in multiple currencies, reduce fees and offer tools to manage cash flow and prevent fraud. These platforms empower businesses to operate with confidence, no matter the economic conditions. In a volatile world, leveraging the right financial tools is non-negotiable.

3. Global talent drives growth

The global talent pool has never been more accessible, yet hiring remains a challenge. SMBs often struggle with compliance, payroll and workforce management across borders. Meanwhile, the competition for skilled workers is fierce. According to recent surveys, 75% of employers report difficulty filling roles, and many entrepreneurial businesses find it particularly tough to attract top talent.

To overcome this, successful SMBs embrace global payroll and workforce management solutions. These tools simplify hiring, compliance and payments across borders. A seamless hiring process not only reduces operational headaches but also makes your business more attractive to candidates. Talent is everywhere; these platforms help you tap into it without the complexity.

Related: These 4 Business Risks Lie Ahead in 2025 — Here's How You Can Prepare

Entrepreneurial businesses aren't just participants in the global economy — they're its backbone. They create jobs, foster innovation and drive growth. The challenges of 2025 — geopolitical, economic and talent-related — are surmountable. With the right strategies and tools, leaders on the front foot can not only survive but thrive.

The future belongs to the innovators and the courageous business owners who seize opportunities despite challenges. Those who embrace global operations and adapt to change will emerge as the most profitable and victorious. By diversifying supply chains, leveraging advanced financial platforms and tapping into global talent pools, SMBs can turn obstacles into stepping stones. In 2025, small businesses won't just navigate change — they'll lead it.

John Caplan

Entrepreneur Leadership Network® Contributor

CEO and Director of Payoneer

John Caplan is the CEO and Director of Payoneer. He is an executive, investor and entrepreneur with a track record of scaling companies in the digital economy. Previously, he was President of North America and Europe at Alibaba.com, the cross-border B2B business unit of Alibaba Group.

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