Small Business Owners Approach 2026 with Cautious Optimism
‘The Big Money Show’ panel discusses whether small businesses are being squeezed by inflation, high borrowing costs, and corporate dominance as Wall Street profits soar and bankruptcies on Main Street hit record highs.
Many small business owners are betting on growth in the year ahead, despite ongoing challenges such as inflation, labor shortages, and economic uncertainty. A recent survey reveals that about 80% of small business owners express confidence in their outlook, with approximately 79% anticipating revenue growth in 2026, according to Comerica Bank’s Small Business Pulse Index released on December 9.
For those expecting growth, the projected average revenue increase stands at 7.9%. “It is evident that challenges are still weighing heavily on them, but they remain cautiously optimistic about what’s ahead in 2026,” stated Larry Franco, executive vice president and national director of retail and small business banking at Comerica Bank, in an interview with FOX Business.
FILE PHOTO: Employees at a small business talk amongst themselves. (Getty Images / Getty Images)
To combat rising costs, small businesses are increasingly adopting technology, including artificial intelligence (AI), to enhance efficiency and manage expenses. Franco noted, “We are seeing smaller businesses leverage productivity tools and are likely to outperform peers who don’t.”
However, hiring trends remain mixed. Labor shortages and escalating costs are making some business owners hesitant to expand their workforce. “As a result, I believe job growth among small businesses will be moderate in 2026,” Franco added.
THIS FAST-GROWING CHAIN SAYS ‘NO DISCOUNTS’ – AND IT’S PAYING OFF
FILE PHOTO: A business owner is pictured using a laptop. (iStock)
Inflation and rising costs remain the primary concerns for business owners. Additionally, worries about labor availability, broader economic uncertainty, and growing “decision fatigue” are also impacting confidence levels. Franco remarked, “There is a sense among the small business owners we visit with regularly that they are stuck in a defensive mode rather than having the ability to focus on building and growing their business.”
As the new year approaches, cash flow remains a critical focus. “Cash flow is king and remains the literal lifeblood of a small business,” Franco emphasized. He advises small business owners to prioritize liquidity over aggressive growth strategies. This includes shortening receivables, tightening inventory, renegotiating vendor terms where possible, and building a cash buffer of three to six months.
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The survey, which included 1,013 small business owners and was conducted between November 4 and November 16, found that confidence levels were highest among technology and health care firms, while housing and real estate businesses reported lower confidence.
‘The Big Money Show’ panel discusses whether small businesses are being squeezed by inflation, high borrowing costs, and corporate dominance as Wall Street profits soar and bankruptcies on Main Street hit record highs.
Many small business owners are betting on growth in the year ahead, despite ongoing challenges such as inflation, labor shortages, and economic uncertainty. A recent survey reveals that about 80% of small business owners express confidence in their outlook, with approximately 79% anticipating revenue growth in 2026, according to Comerica Bank’s Small Business Pulse Index released on December 9.
For those expecting growth, the projected average revenue increase stands at 7.9%. “It is evident that challenges are still weighing heavily on them, but they remain cautiously optimistic about what’s ahead in 2026,” stated Larry Franco, executive vice president and national director of retail and small business banking at Comerica Bank, in an interview with FOX Business.
FILE PHOTO: Employees at a small business talk amongst themselves. (Getty Images / Getty Images)
To combat rising costs, small businesses are increasingly adopting technology, including artificial intelligence (AI), to enhance efficiency and manage expenses. Franco noted, “We are seeing smaller businesses leverage productivity tools and are likely to outperform peers who don’t.”
However, hiring trends remain mixed. Labor shortages and escalating costs are making some business owners hesitant to expand their workforce. “As a result, I believe job growth among small businesses will be moderate in 2026,” Franco added.
THIS FAST-GROWING CHAIN SAYS ‘NO DISCOUNTS’ – AND IT’S PAYING OFF
FILE PHOTO: A business owner is pictured using a laptop. (iStock)
Inflation and rising costs remain the primary concerns for business owners. Additionally, worries about labor availability, broader economic uncertainty, and growing “decision fatigue” are also impacting confidence levels. Franco remarked, “There is a sense among the small business owners we visit with regularly that they are stuck in a defensive mode rather than having the ability to focus on building and growing their business.”
As the new year approaches, cash flow remains a critical focus. “Cash flow is king and remains the literal lifeblood of a small business,” Franco emphasized. He advises small business owners to prioritize liquidity over aggressive growth strategies. This includes shortening receivables, tightening inventory, renegotiating vendor terms where possible, and building a cash buffer of three to six months.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The survey, which included 1,013 small business owners and was conducted between November 4 and November 16, found that confidence levels were highest among technology and health care firms, while housing and real estate businesses reported lower confidence.
