Founded Outdoors and REI Co-op Path Ahead Ventures release early findings from 2025 Outdoor Small Business Benchmarking Study

June 16, 2025

Study delivers in-depth look at the complex challenges and emerging opportunities facing outdoor industry companies with under $10m in annual revenue

June 16, 2025 /OUTDOOR SPORTSWIRE/ – Founded Outdoors and REI Co-op Path Ahead Ventures this week released key findings from their upcoming 2025 Outdoor Small Business Benchmarking Study.

The free executive summary (LINK) provides an in-depth look at the complex challenges and emerging opportunities facing outdoor industry companies with under $10m in annual revenue, delivering essential insights during a period of rapid economic changes.

Compiled over the last five months, the study highlights the pressing challenges and emerging opportunities facing small outdoor businesses today. The study also reinforces the essential role of targeted support for early stage and underrepresented founders and business owners, as the health of these young businesses is critical to future innovation, broader inclusivity, and a more resilient and dynamic outdoor industry overall.

A selection of key takeaways from the 2025 Outdoor Small Business Benchmarking Study include:

• Heavy Reliance on China Highlights Need for Supply Chain Diversification: Of the respondents that manufacture internationally, 70 percent reported making some of their goods in China
• Financing Learning Curve is a Barrier for Many Founders: More than 35% of founders and business owners reported low familiarity with key financing tools such as merchant cash advances, inventory financing, PO financing, AR financing, and supplier financing.
• Gaps Persist for Women Founders in 2024: In 2024, women-only teams reported the lowest rates of equity fundraising at 15 percent (compared to 50% of all-men teams) and raised the smallest median amounts at $26,000, half the overall median.
• Founder Diversity Drives Team Representation: Among businesses with non-founder/owner employees, 81% of teams with a woman founder or owner had at least one woman employee, compared to just 60% of businesses without any women founders or owners. Similarly, 65% of teams with a founder or owner of color had at least one employee of color, versus only 38% of businesses without any founders or owners of color.

Other key takeaways in the Study include how mental health struggles peak for early stage founders/business owners; why marketing/consumer sales and finances are a significant business challenge; and that word-of-mouth and organic social media efforts are the drivers of early-stage marketing.

“When small businesses are thriving, the entire outdoor industry becomes stronger. Our emerging founders and business owners are the drivers of innovation, the entry points to new communities, and an essential component of a more resilient, inclusive, and dynamic outdoor industry,” said Katie Doherty, Founded Outdoors

“Understanding and supporting the needs of small outdoor businesses is critical. However, many outdoor business owners operate without access to the information, capital, or networks that are readily available to larger brands. This report helps fill the knowledge gap by providing small business owners with data they can use to benchmark their progress, validate their challenges, and make more informed decisions,” said Keenan Corrigan, Senior Program Manager, Path Ahead Ventures.

The full report will be available by request here (LINK) on July 7, 2025, and will include additional data on 2024 business performance metrics, team composition, contractor use, trade show preferences, regional funding and manufacturing trends, advertising strategies, and sales channel patterns.

ABOUT PATH AHEAD VENTURES:

Path Ahead Ventures was launched in 2021 by REI as part of a $30 million investment in founders of color as they start and scale their businesses in the outdoor industry. Through Path Ahead Ventures, REI is leveraging its network, capabilities and community to partner with Black, Indigenous, Latina/o/x and Asian American Pacific Islander entrepreneurs to build their businesses faster. Path Ahead Ventures focuses on four specific areas of support — capital investment, programming, resources, and community. For more information, please go to www.rei.com/path-ahead

ABOUT FOUNDED OUTDOORS:

Founded Outdoors launched in 2021 to build pathways for outdoor entrepreneurs to thrive. It supports emerging companies nationwide through a community of more than 500 outdoor entrepreneurs. Members benefit from knowledge sharing, resource libraries, and topical workshops and events. Founded Outdoors also partners with industry groups including state outdoor recreation offices and economic development agencies, providing strategic guidance on business support and leading regional program implementation. Current partners include the Maine Outdoor Business Alliance and the Wisconsin Department of Tourism’s Office of Outdoor Recreation. For more information, please visit foundedoutdoors.com.