Small Business Profits Drop 50 Percent
According to one report, earnings in June were up from January but down significantly over the past year.
Good Morning!
Here are today’s highlights:
Do you know what “vibe coding” is? You probably should.
President Trump’s tax bill delivers an unexpected gift to Silicon Valley.
Surprisingly, real estate commissions have increased since the big settlement.
Small businesses can still be a great way to generate wealth, but that doesn’t mean everyone wants to take over the family business.
THE ECONOMY
Small business earnings in June were half of what they were a year ago: “The data comes from Biz2Credit, a New York City-based online marketplace for small business financing that publishes a monthly Small Business Earnings Report. Biz2Credit analyzes key financial metrics, including annual revenue, operating expenses, business age, credit scores, approval rates, and funding rates. Its report draws on data from over 100,000 completed financing applications submitted between January 2022 and June 2025 through Biz2Credit’s online funding platform.”
“Monthly earnings remain significantly below levels seen in the previous two years. According to Biz2Credit, average monthly earnings topped out at about $250,000 in the summer of 2023. By June 2024, that figure had dropped to $128,900. This June, the average was just $62,300.”
“The takeaway: While earnings have improved since the start of the year, small businesses are still worse off than they were in each of the prior two years. Even so, the recent uptick isn't trivial. At a minimum, it signals that conditions aren't getting worse—for the moment at least.” READ MORE
