In a year defined by geopolitical volatility, talent shortages, and macroeconomic uncertainty, small and medium-sized businesses (SMBs) didn’t just survive—they evolved. According to a new study by the Upwork Research Institute, SMBs turned crisis into catalyst by leaning into AI, flexible workforces, and relentless experimentation.
To support this shift, Upwork (Nasdaq: UPWK) has rolled out new Business Plus features, including Uma Recruiter, an always-on, AI-powered hiring agent that promises to find top talent matches in under six hours—dramatically accelerating how SMBs hire and grow in the AI era.
Resilience Redefined: How SMBs Adapted in 2025
The report—titled The Key to Growth: How Small Businesses Turn Disruption into an Edge—surveyed nearly 500 SMB executives across the U.S., uncovering how leaders navigated 2025’s economic turbulence while staying agile and growth-focused.
“SMBs learned that defensive strategies alone weren’t enough,” said Dr. Gabby Burlacu, Senior Research Manager at the Upwork Research Institute. “Those that embraced flexible talent, AI tools, and continuous experimentation positioned themselves for long-term success—no matter what came next.”
Key Insights from the Report
1. Innovation Through Disruption:
SMB confidence fluctuated throughout 2025, dropping from 51% in Q1 to 47% in Q2, then rebounding to 58% in Q3. The key differentiator: commitment to AI and flexible talent models. The most confident leaders never paused innovation—even when market uncertainty peaked.
2. AI as a Core Operational Engine:
SMBs that maintained confidence were twice as likely to have deployed AI across both front-office (27%) and back-office (23%) functions—covering everything from sales forecasting to financial automation.
Thirty percent of respondents said they had retooled entire operating models around an “AI-first” mindset.
3. The Rise of Flexible Expertise:
As AI adoption accelerated, SMBs turned to on-demand specialists to fill skill gaps. Job posts for AI-proficient talent surged 44% on Upwork between January and July 2025, underscoring a growing appetite for fractional and freelance experts.
4. AI’s Tangible Payoff:
Supplemental research conducted with Zoom revealed that 93% of AI-enabled SMBs reported revenue gains, with 41% seeing growth above 10%. Meanwhile, 82% saw cost reductions, and 91% achieved measurable ROI from AI initiatives.
5. Experimentation as a Growth Strategy:
Nearly one in four SMB leaders formally embedded experimentation into their culture, viewing change as a testbed for innovation rather than a threat. It’s a mindset that turned disruption into a competitive advantage.
Upwork’s AI Play: Uma Recruiter and the Future of SMB Hiring
Building on these findings, Upwork has reimagined its Business Plus offering—the platform’s premium solution for scaling teams. Business Plus now includes instant access to the top 1% of talent across 125+ work categories, coupled with tools for performance tracking, collaboration, and contract management.
At the center of this evolution is Uma Recruiter, Upwork’s new AI hiring agent that actively scans talent profiles, understands client needs, and delivers curated shortlists in under six hours. Uma doesn’t just automate hiring—it contextualizes it, acting as a digital recruiter that learns from feedback and business objectives.
“SMB leaders wear a lot of hats—from strategist to marketer to doer,” said Dave Bottoms, General Manager of the Upwork Marketplace. “Business Plus, with Uma Recruiter, helps them find the right people faster so they can focus on innovation instead of administration.”
AI-Powered Growth in the New Work Economy
For SMBs, 2025 has proven that agility isn’t optional—it’s a growth strategy. As AI tools mature and flexible talent ecosystems expand, the gap between reactive and proactive businesses continues to widen.
Upwork’s latest research reinforces a broader market trend: the most resilient companies aren’t those that merely adopt AI—they build around it. And with Uma Recruiter, Upwork seems intent on helping them do just that.
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