Small and mid-sized businesses in the United States are looking toward 2026 with quiet confidence. A new report shows that most owners expect their revenues to rise in the coming year, even as they continue to deal with familiar pressures like inflation, labor shortages, and supply chain delays. The overall picture is a sector that is hopeful but still alert to the risks around it.
According to recent findings, about three-quarters of small and mid-sized business owners believe their revenue will increase in 2026. Nearly sixty percent plan to expand their operations. Many say their confidence grows when they see signs of cooling inflation, steadier tariff policies, lower interest rates, and stronger supply chains. Even though owners do not expect a perfect economic environment, they feel conditions are slowly moving in the right direction.
The report also shows that business owners are becoming more optimistic about the wider economy. Around half expect local, national, and even global economic conditions to improve over the next year. This cautious optimism does not erase their concerns, but it signals a shift from the uncertainty of recent years.
Labor remains one of the hardest challenges. About sixty percent of owners say they are facing worker shortages. Some are working extra hours themselves, while others are raising wages to attract staff. Despite the pressure, only a small fraction plan to reduce their workforce. In fact, more than forty percent hope to hire more employees in the coming year, which suggests they are planning for growth rather than contraction.
Technology, especially AI, is becoming a powerful tool for many businesses. More than three-quarters of owners have adopted some form of AI in the past five years. They are using it to improve marketing, create content, manage inventory, and strengthen customer service. Spending on technology continues to rise as owners look for tools that help them work smarter and faster.
Supply chains remain another major pressure point. Three-quarters of owners still report difficulties in sourcing products or receiving deliveries on time. Many have responded by raising prices, while others are searching for new suppliers or adjusting their operations to stay flexible.
Inflation is also weighing heavily on decisions. A large majority of owners say rising costs are affecting their businesses. To cope, many are reviewing their cash flow more carefully and increasing the prices of their goods and services.
Looking further ahead, business owners appear focused on growth and innovation throughout the rest of the decade. Many plan to expand their customer base, add new products, and explore new marketing strategies. Most intend to adopt more digital tools, from accepting more digital payments to improving employee workflows and strengthening online security. This long-term view shows that even in an unpredictable environment, SMEs are preparing for steady progress.
The report paints a clear picture of a sector that is resilient, adaptable, and ready for change as it moves into 2026. Investment banking firms like B. Riley Financial Inc. (NASDAQ: RILY) could find ways to increase their penetration of this sector and grow their portfolios.
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