Small Business in 2026: Growth, Tariffs, AI Adoption & What Owners Expect
Key Takeaways from the 2026 Small Business Survey
- 75% of small business owners expect revenue growth over the next 12 months, showing resilience despite economic uncertainty
- Cash flow remains the #1 challenge, but concerns are shifting toward labor costs and staffing pressures
- Tariffs are now a major factor, impacting nearly 3 in 4 businesses through higher costs and tighter margins
- Inflation is easing, but still widespread with most owners continuing to manage moderate cost increases
- AI adoption is rising, with nearly 40% of businesses using AI tools
- Marketing content creation is the top AI use case, followed by data analysis, customer service, and sales outreach
- Financing is being used more strategically, with increased focus on cash flow management and refinancing
- Speed and transparency matter most when choosing lenders, outweighing long-term relationship considerations
Running a business right now isn't easy. Costs are still high, interest rates are uncertain, and tariffs have thrown a new wrench into the mix. Yet somehow, most business owners aren't backing down.
We surveyed over 300 business owners in early 2026 to find out how they're actually feeling, and what they're doing about it. You can explore the full findings at forafinancial.com/business-insights. Here's a look at what stood out.
2026 Small Business Outlook Remains Strong: Most Owners Still Expect to Grow
Despite everything, three in four business owners expect their revenue to increase over the next 12 months. That's almost exactly where things stood a year ago.
It's easy to underestimate how significant that consistency is. The environment has gotten more complicated, but confidence hasn't eroded. More than half of owners now expect economic conditions to be favorable, the first time that's been a majority view since we started tracking it.
Not everyone is optimistic, of course. Food service owners are the most cautious. Construction owners are the most bullish. But across industries, the prevailing mood is one of cautious forward momentum.
Top Challenges: The Pressures Have Shifted
Cash flow is still the top challenge, it's been that way for years, and 2026 is no different. But what's changed is everything around it.
Concern about the broader economy has actually dropped, while staffing and labor costs have climbed. That shift tells you something: owners aren't as worried about forces they can't control. They're focused on their own operations.
And then there's a new entrant: tariffs. They weren't even on the survey last year. Now, nearly three in four owners say tariffs are affecting their business; through higher supply costs, tighter margins, or pressure to raise prices. That's a pressure that showed up fast and is likely to keep growing.
Inflation Is Getting Better, Slowly
The inflation story is improving, just not quickly enough to stop being a story.
Fewer owners are reporting severe cost increases compared to last year. That's real progress. But the vast majority are still dealing with at least moderate price pressure across their operations. Inflation hasn't gone away, owners have just gotten better at absorbing it.
The most common responses are raising prices and cutting operating costs. A significant share are also seeking additional funding to bridge the gap, which speaks to how important access to capital has become as a buffer against economic pressure.
AI Is Starting to Separate the Field
Here's the finding that surprised us most: the businesses expecting the strongest growth are far more likely to already be using AI.
Nearly 4 in 10 owners are using AI tools today. Among those expecting significant revenue growth, that number jumps to more than half. Among those expecting a decline, it's less than one in five.
It's hard to say which is driving which, are growth-oriented businesses simply more likely to invest in AI, or is AI actually accelerating growth? Probably both. But either way, the gap is widening between businesses that are experimenting with these tools and those that aren't.
The most common use case by far is marketing content creation. Data analysis, customer service, and sales outreach follow. AI isn't being used for just one thing, it's spreading across the business.
For owners who haven't adopted it yet, the top reason is simply not seeing the need. Cost and complexity are close behind, both of which are becoming less of a barrier as the tools improve.
Borrowing Is More Purposeful
Business owners are still cautious about taking on debt, but less so than a year ago.
What's interesting is why they're borrowing. Business expansion is still the top reason, but it's no longer as dominant as it once was. Refinancing existing debt and managing seasonal cash flow have moved up significantly, signs that owners are using financing not just to grow, but to run smarter.
When it comes to choosing a lender, transparent pricing and flexible repayment terms are now what matter most. Speed is expected. Long-term relationship-building is less of a priority than it used to be. Owners want clarity and speed, not a sales process.
The Bottom Line
Business owners in 2026 aren't waiting for things to get easier. They're building around the uncertainty.
The ones doing best are protecting their margins, staying deliberate about capital, and leaning into technology. Tariffs and rates will keep creating friction. But the fundamentals, confidence, resilience, and a bias toward action, remain intact.
Want to see the full data behind these findings?
Explore the complete 2026 Business Insights Report, including all the charts, year-over-year comparisons, and industry-level breakdowns.
Since 2008, Fora Financial has distributed $5 billion to 55,000 businesses. Click here or call (877) 419-3568 for more information on how Fora Financial's working capital solutions can help your business thrive.
