Commercial Pulse Report | 6/17/2025
Economic uncertainty is often seen as a deterrent to growth, but for many Americans, it’s become the fuel for a fresh start. As inflation wavers and traditional employment structures shift, more individuals are stepping out of corporate roles to pursue business ownership. In this week’s Commercial Pulse Report, we take a closer look at what’s driving this wave of entrepreneurial activity.
Gen X Leads the Charge Toward Self-Employment
According to Guidant Financial’s 2025 Small Business Trends report, Generation X is leading the charge. Many in this age group are opting out of traditional career paths, motivated by a desire for autonomy, flexibility, and a more purposeful work life. According to Guidant’s report, Gen X holds the largest share of U.S. small business ownership, with a significant portion of these entrepreneurs transitioning from established careers.
What’s driving this shift? Dissatisfaction with corporate life and a strong desire to be one’s own boss are leading motivators. It’s a story of experienced professionals reevaluating priorities and seeking more control over their financial future. And it appears to be a fulfilling decision—75% of small business owners report being happy with their choice to go independent.
Retirement Savings Power New Ventures
A surprising—but telling—statistic in ’s report: 53% of new business owners used 401(k) retirement funds to launch their ventures. This trend underscores a growing willingness to invest personal wealth into long-term entrepreneurial aspirations. Known as Rollovers as Business Startups (ROBS), this approach allows individuals to use retirement funds without early withdrawal penalties.
It’s a bold move, signaling high confidence among business owners—but also highlighting gaps in access to traditional funding channels. Entrepreneurs are taking on more personal risk, in part because institutional capital isn’t always accessible to young businesses.
Interestingly, 56% of all new businesses are either newly founded or existing independent ventures, showing a diverse range of entrepreneurial approaches—from solo startups to revitalized legacy brands.
The Credit Dillema for Young Businesses
Experian’s data shows that businesses under two years old account for more than 50% of new commercial card originations. These companies are opting for credit cards over term loans due to fewer barriers to entry, but this often means lower funding limits. Meanwhile, newer businesses face steeper challenges securing traditional loans. They now represent just 15% of term loan originations, down from 27% in 2022.
For lenders, policy makers, and service providers, these trends underscore the need to rethink how we support emerging businesses. From alternative funding tools to better credit-building pathways, there’s a growing opportunity to empower America’s newest entrepreneurs.
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Experian Commercial Pulse Report Explores Implications of Rising Premiums As the year draws to a close, one issue looms large for millions of small business owners: the rising cost of healthcare. According to the latest Experian Commercial Pulse Report, small business survival may soon hinge on a single factor — whether enhanced Affordable Care Act (ACA) subsidies are extended into 2026. Watch the Commercial Pulse Update The Clock Is Ticking on ACA Subsidies The American Rescue Plan and Inflation Reduction Act temporarily expanded ACA subsidies, helping make coverage more affordable for millions. But those enhancements are set to expire at the end of 2025 — a policy shift that could unleash a wave of economic strain. The Kaiser Family Foundation estimates that if these subsidies lapse, individuals who purchase insurance through the ACA marketplace could see a 75% increase in premiums. Why does this matter so much for small businesses? Because half of all ACA marketplace enrollees are small business owners, entrepreneurs, or their employees. Coverage Is Shrinking, and Costs Keep Climbing Smaller businesses have historically been less likely to offer health insurance benefits than their larger counterparts. In 2025, only 64% of businesses with 25 to 49 employees offer health benefits — the lowest level ever recorded. And while large employers are still required by the ACA to offer coverage to full-time workers, they too are feeling the pressure. Since 2010, employers have gradually reduced the share of healthcare premiums they cover, even as deductibles have risen by 164% for single coverage plans. The result? Business owners are being squeezed from both sides — by rising insurance costs and a more financially stressed workforce. The Ripple Effects Could Be Widespread If enhanced subsidies aren’t renewed, many small businesses may have no choice but to: Shut down operations Cut staff Shift jobs into larger organizations that can offer coverage That would be a blow not only to small business dynamism but also to broader economic sectors. Reduced consumer spending could hit industries like retail, real estate, and manufacturing, while healthcare providers face payment cuts and job losses due to shrinking coverage pools. What’s Next? With Congress set to vote on subsidy extensions before the end of the year, the stakes couldn’t be higher. The outcome will likely define affordability, access, and entrepreneurship for years to come. For small business owners, now is the time to assess your coverage plans, understand your employee needs, and prepare for potential cost increases. For policymakers and industry leaders, it’s a critical moment to ensure healthcare reforms continue to support the backbone of the U.S. economy — small businesses. Experian continues to provide actionable data to help businesses, lenders, and policymakers navigate uncertainty. To access the full Commercial Pulse Report and explore more insights on small business credit and sector-specific performance: ✔ Visit our Commercial Insights Hub for in-depth reports and expert analysis. ✔ Subscribe to our YouTube channel for regular updates on small business trends. ✔ Connect with your Experian account team to explore how data-driven insights can help your business grow. Download the Commercial Pulse Report Visit Commercial Insights Hub Related Posts
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