To start the year, small business owners are navigating a landscape that blends optimism with caution. A recent survey from Comerica Bank, a financial services company, reveals that while confidence remains strong, challenges such as inflation, tariffs and labor shortages continue to shape decision-making.
Bank Comerica’s Small Business Pulse Index shows that 80% of small business owners feel “somewhat or very confident” about their prospects for the year ahead. Nearly 80% anticipate revenue growth, projecting an average increase of 7.9%. Despite this upbeat outlook, significant pressures persist. Inflation tops the list of concerns, cited by nearly a quarter of respondents, followed by tariffs and labor challenges. Tariffs have already impacted 42% of businesses, particularly in manufacturing and retail. Rising labor costs and ongoing workforce shortages are prompting many owners to rethink hiring strategies, with some opting for freezes or scaled-back plans.
“Small businesses have navigated a year filled with challenges, from tariffs and inflation to a prolonged government shutdown, yet their optimism remains unwavering,” said Larry Franco, Comerica Bank executive vice president and national director of Retail & Small Business Banking. “This spirit speaks volumes about the adaptability and determination of America’s entrepreneurs as they prepare for growth in 2026.”
To counter these headwinds, small businesses are focusing on investment and efficiency. More than half of surveyed businesses plan to make capital investments in 2026, averaging $109,000 per firm, with technology companies leading the charge. Nearly half of the respondents are prioritizing operational improvements, including the adoption of new technologies to streamline processes and reduce costs. To manage tariff-related pressures, businesses are employing strategies such as securing new credit lines, delaying investments and tapping personal savings.
Interest rate cuts by the Federal Reserve have provided a silver lining. More than half of surveyed owners report positive impacts from lower rates, with many using this opportunity to invest strategically or take calculated risks. Small businesses should continue to monitor market trends and consider what they mean for their workforce.
Employer Takeaway
For small business owners, 2026 is a year to strike a balance between ambition and adaptability. Confidence may be high, but external pressures encourage proactive planning. Employers should consider safeguarding cash flow, investing in technology to boost efficiency, and maintaining flexibility in hiring and operations. By staying informed and agile, small businesses can turn challenges into opportunities and position themselves for sustainable growth in the year ahead.
DIG Deeper
Check out our blog on 10 Small Business Trends Every Owner Needs to Know for 2026.
For more workplace resources, contact the Small Business Insurance Experts at Deeley Insurance Group today. Call or text us at 410.213.5600.
