New Survey: 71% of Small Businesses Saw Stronger Financials in 2025, and Most Expect Even Better in 2026
If you’ve been feeling cautiously optimistic about your business lately, you’re not alone. A major new survey released today by the Small Business & Entrepreneurship Council confirms what many owners have been sensing on the ground: 2025 was a strong year, and 2026 is shaping up to be even better.
The Numbers Tell a Clear Story
The SBE Council’s “Small Business Check Up” survey — conducted February 10–13 by TechnoMetrica among 539 small business employers (2–99 employees) — paints an encouraging picture:
- 71% of small business owners say their financial performance improved in 2025 compared to 2024
- 84% report that 2025 met or exceeded their expectations
- 92% describe their current business condition as stable or growing
Looking ahead, 90% expect financial improvement or stability in 2026, and 81% express confidence in a positive year.
“Small business owners confidently pursued new technologies and investments that helped them boost revenue and compete more effectively,” said Karen Kerrigan, SBE Council President & CEO.
What’s Driving the Growth
Among the 87% of respondents who reported positive performance, the top strategies behind their success were:
| Strategy | % of Respondents |
|---|---|
| Revenue generation focus | 51% |
| AI technology adoption | 38% |
| Expanded capacity | 32% |
| New markets or products | 31% |
| Cost reduction | 31% |
| Debt reduction | 27% |
The standout finding? AI adoption ranked second — ahead of traditional strategies like expanding capacity or entering new markets. Roughly 77% of small businesses are now using AI tools in some capacity, with 56% saying AI is creating opportunities and reshaping roles without reducing headcount.
Tax Relief Is Making a Difference
The Working Family Tax Cuts Act appears to be delivering tangible results for small employers:
- 78% are currently benefiting from at least one provision
- 61% report positive cash-flow effects
- 73% anticipate ongoing positive impact, primarily through improved cash flow and stronger financial stability
The survey also found early interest in Trump Accounts, with 16% planning to contribute and another 36% actively researching the option — potentially representing over 1 million small businesses making contributions.
The Concerns That Remain
It’s not all sunshine. Small business owners flagged several ongoing headwinds:
Inflation remains the top concern, with 73% worried — though 51% say it has eased over the past six months. Only 27% describe themselves as “very concerned,” down from higher levels in prior years.
Tariff uncertainty is on the radar for 62% of respondents, though the actual impact has been limited so far: 41% report no impact, 37% say the effect is slight, and only 11% describe significant negative impact.
Capital access is a constraint for 43% of businesses, limiting their ability to invest and grow.
Labor shortages continue to affect two-thirds of respondents, with 24% reporting moderate impacts and 9% describing major or severe effects on operations.
Health insurance costs rose for half of respondents at their last renewal, with 17% seeing significant increases. A full 61% believe insurance companies are primarily responsible for high costs.
What This Means for Your Business
The overall takeaway is encouraging: small businesses are not just surviving — they’re investing, adopting technology, and growing revenue. But the data also highlights where to focus your attention.
What to do:
- If you haven’t explored AI tools yet, now is the time. With 38% of growing businesses crediting AI as a success factor, the competitive gap is widening. Start with one high-impact area like marketing content, customer service, or financial analysis.
- Review your tax situation. If you haven’t evaluated the Working Family Tax Cuts Act provisions, check with your accountant — 78% of businesses are already benefiting.
- Build cash reserves. With 43% citing capital constraints, businesses with strong cash positions will have a meaningful advantage in seizing opportunities.
- Plan for labor flexibility. If hiring remains challenging, invest in tools and automation that help your existing team do more.
Struggling to keep track of leads and customer relationships as you grow? A CRM built for small businesses can help you stay organized without adding headcount. SMBcrm is designed specifically for small teams — simple, affordable, and ready in minutes.
Quick action item: Download or bookmark the full SBE Council survey results to benchmark your own business against the national data.