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Small Businesses Are Hurting—and MSPs Need to Help More Than Ever

So let’s take a look at some of the reaction from customers.

The National Federation of Independent Business (NFIB) has reported a significant decline in its Small Business Optimism Index for March 2025, which fell by 3.3 points to 97.4, dropping below the historical average of 98. Business owners are increasingly concerned about ongoing policy changes and economic conditions, as highlighted by NFIB Chief Economist Bill Dunkelberg. The NFIB Uncertainty Index also decreased by eight points, reflecting heightened apprehension among small business owners. Taxes emerged as the primary issue for 18 percent of owners, an increase since February, while labor quality remains a key concern for 19 percent. Expectations for improved business conditions declined sharply, with a net negative 21 percent anticipating better conditions. Furthermore, hiring trends reveal that 40 percent of owners have job openings they cannot fill, and access to credit is tightening, with six percent reporting that their last loan was more challenging to obtain.

Small business owners are expressing significant concerns about the impact of new tariffs on their operations. A Reddit thread within the small business community revealed fears of increased import duties, with one owner reporting a staggering two thousand four hundred eighty-three dollars in import fees for aluminum parts worth three thousand three hundred eighty dollars. Commenters suggested that future orders could experience price increases of up to one hundred fifty-six percent. Many business owners, including those in retail and niche markets, voiced that these tariffs could potentially jeopardize their livelihoods, with one owner stating that costs could rise by twenty to sixty percent, which could “absolutely destroy” their business. Others discussed implementing “tariff charge” line items on receipts to explain the rising prices to customers, emphasizing that these increases result from government policies rather than profit-driven gouging.

Examples include furniture brands like Hem and Industry West notifying customers of price hikes, while U.S.-based chipmaker Micron plans to impose extra charges on products due to new import duties. A sexual wellness company, Dame, announced a five-dollar surcharge on imports from China, emphasizing the impact of tariffs on its pricing strategy. As various industries, including food and clothing, express concern over rising operational costs, experts predict that everyday products, such as coffee, may soon see significant price increases. With many coffee beans sourced from Asian countries affected by tariffs, consumers could face higher prices for their morning brews. Retailers are preparing to clearly indicate how much of their pricing is influenced by these tariffs, making it evident that American consumers are likely to bear the brunt of these increased costs.

Why do we care?

From NFIB survey data to unfiltered Reddit threads, the throughline is unmistakable: small businesses—the core customers of most MSPsare panicking.  Clients are showing classic downturn behavior: cutting where they can, deferring spending, and holding back hiring. This isn’t just perception—it’s reflected in the NFIB data. The net -21% outlook on future conditions is the worst signal for forward-looking services demand.

Bundle audits, automation services, or workflow optimization with the explicit purpose of “finding savings.” Help clients justify your invoice.  Add an educational component to your billing—brief memos, support videos, or short explainers that help clients understand what’s changing and why your services still matter.

And address tariff-related pressures head-on. Be the first to bring it up—and offer solutions, like phasing projects, switching vendors, or renegotiating licensing models.

MSPs are only as resilient as their customers. With small businesses under immense stress from tariff-driven costs and financial uncertainty, providers must shift from growth mode to guidance mode—and lead with empathy, clarity, and adaptability.