The arrival of a new year brings promise to budding entrepreneurs and established moguls, but there are always challenges. 2024 was a taxing year for businesses in many ways, with rising costs, continued uncertainty in Ukraine, major global elections and stubbornly high inflation and interest rates. As we look forward to the months ahead, this article shines a spotlight on the most pressing issues for businesses to deal with in 2025.

Climate risks

The largest global survey on climate change, People’s Climate Vote 2024, revealed that over 50% of people are more worried about climate risks than they were during the previous year. As adverse and extreme weather becomes more commonplace, climate change has become a more significant threat to business owners, manufacturers, distributors and consumers. From climate impact to food safety in the agriculture, food manufacturing and hospitality industries to fears over the safety and variability of trips and tours in the travel and tourism fields, changes in the climate and unpredictable weather conditions impact almost every company to some degree. A study of UK businesses found that over half are already feeling the impact of climate change.

New policies

2024 was a significant year for politics, with elections taking place in more than 60 countries, including the US, UK, India, France, and Japan. The start of the year brings uncertainty for companies due to the introduction of new policies, which could impact international trade, tariffs, business rates and taxes. As new governments prepare to launch policies or make changes, it remains to be seen how global and national business landscapes will be affected. The change of President in the US is particularly significant, with Donald Trump set to resume control of the White House in January 2025.

High living and running costs

Living costs have risen significantly in the last five years in many countries, impacting customers and businesses. In addition to high inflation, food costs and utilities, some company owners are also tackling hikes in business rates and rising minimum wage values. A Forbes study showed that financial issues are the top concerns for small business owners in the UK. Over 70% are worried about the cost of living, 39% have fears over the rising cost of materials and supplies and a third are concerned about restricted access to finance.

Cybercrime

A 2024 survey of chief information security officers indicated that almost 90% of US businesses were at risk of a cyber-attack or data breach in 2025. In 2024 alone, it is estimated that cybercrime cost the global economy over $9 trillion. Although businesses are investing more money in cybersecurity, threats have become more potent due to high levels of sophistication. It has become increasingly difficult to spot signs of suspicious activity, especially in cases where employees or individuals don’t have the relevant training or expertise. Phishing scams, for example, cost businesses almost $18,000 per minute, according to CSO Online.

Advances in technology, most notably AI (Artificial Intelligence), have created new threats for businesses and organizations, including deep-fake software and automated phishing attacks. Keeping up to date with risks and updating tools, systems and software to strengthen defenses and identify threats is an additional cost burden for businesses of all sizes. Large corporations are targeted most commonly, but small firms may not have the resources to keep threats at bay.

International trade

Trading internationally provides growth opportunities for enterprises in addition to protections against limiting factors within domestic markets, but there are risks. Politics and business are intertwined. Strong political relations can contribute to healthy international trade while strained relationships can hamper businesses looking to explore new global markets or expand existing operations overseas. There is significant political unrest in the world, which could affect international trade in 2025, especially with new leaders taking the reins. Talks of sanctions and tariffs could cause concerns for businesses that depend heavily on foreign trade and company owners who want to reach new customers. There are also risks of increased costs for organizations that trade in other countries at a time when other expenses are rising, which will impact profit margins.

The beginning of a new year often brings excitement for business owners and aspiring entrepreneurs, but it can also be an anxious time. 2024 posed significant challenges for companies and organizations across the world, with costs rising, major elections taking place and climate change an increasingly dominant topic of conversation. In 2025, business owners will have to think about many issues, ranging from international trade and climate risks to geopolitics and rising living and running costs.