BofA: Small Businesses Optimistic About Revenues Heading Into 2026
Many small businesses that expected this year to go swimmingly were likely at least somewhat disappointed, as an economy that The Economist called “the envy of the world” in 2024 turned into a hotbed of uncertainty for most of 2025.
You can name any number of things. Tariffs shook up still-recovering supply chains and caused massive variability in input costs. A tight labor market made it difficult for small businesses to remain appropriately staffed. And inflation, while cooling remained above pre-COVID levels.
The good news? Despite all this, small- and midsize (SMID) business owners remain optimistic about their prospects heading into 2026.
BofA Report: Business Owners See Higher Top Lines Next Year
Bank of America, in partnership with the Bank of America Institute, recently released its 2025 Business Owner Report: a survey of more than 800 owners of small businesses ($100,000-$4,999,999 annual revenues, two to 99 employees) and more than 250 midsize businesses ($5,000,000-$49,999,999 annual revenues, two and 499 employees).
Among those SMID business owners, nearly two-thirds (74%) expect revenues to increase in 2026, and nearly 60% plan to expand their businesses. Curiously, that comes as a smaller share believe that we’ll see improvements in local (53%), national (48%) and global (45%) economies over the coming year.
They’re not entirely sold, however. Business owners said their confidence would improve further if they saw progress in:
- Tariff policy (53%)
- Cooling inflation (52%)
- Lower interest rates (52%)
- Stronger supply chains (39%)
“Business owners are approaching the coming year with confidence and a clear focus on growth,” says Sharon Miller, President of Business Banking at Bank of America. “Many plan to retain their current staff and hire more, and anticipate that local, national and global economies will improve.”
Many of the Same Concerns Continue Into 2026
Again, small business owners are still worried about the same issues they’ve been facing throughout 2025.
For instance …
- 88% of business owners say they’re currently being impacted by inflation. Nearly two-thirds say they’re raising prices of goods and/or services as a result, while 39% are re-evaluating their cash flow and spending for 2026.
- 75% say they’re feeling the effect of supply-chain issues. Like with inflation, many businesses (52%) are raising prices in response. And about a third (32%) are still struggling to source the products and services they need.
- 61% say they’re dealing with labor shortages. Half of SMID business owners are personally working more hours as a result, while 40% say they’re raising wages to attract talent. Hiring plans are heavily askew, too; 43% plan to hire more employees over the next 12 months, while just 1% have plans to lay people off.
- On this front, more than three-quarters (77%) have integrated artificial intelligence (AI) into their operations over the past five years. The top uses are marketing (50%), content production (38%), customer services (37%) and inventory management (28%).
Business Owners Will Lean Further Into Tech in the Years Ahead
The vast majority of business owners (91%) said that across the next five years, they plan to adopt more digital tools (including AI).
Among the most commonly cited plans were accepting more forms of digital payments (52%), improving employee workflows (47%), implementing more digital-first marketing strategies (45%) and increasing cybersecurity measures (30%).
Many Business Owners Haven’t Planned for Succession
A majority of SMID business owners say they’re not focused on an exit strategy in the next five years. That said, a smaller majority actually do have a succession plan in place, but a still significant 40% haven’t prepared for the future of their business.
Among the business owners that do have a succession plan, around a third (32%) say they’ll transition to another family member, while 38% say they’ll eventually sell their business.
What Is Your Business’s Outlook for 2026?
If you’re facing any uncertainties heading into 2026, McManamon & Co. can help. Our consulting services include strategic planning, support with establishing corporate banking relationships, cash flow and tax planning strategies, and more.
Want to know more? Reach out to us at 440.892.8900 or contact us online today.
Tags: consulting, McManamon, McManamon & Co., small business, small business consulting | Posted in McManamon & Co., small business