“The Big Money Show” panel discusses whether small businesses are being squeezed by inflation, high borrowing costs and corporate dominance as profits soar on Wall Street and bankruptcies on Main Street reach record highs.
Many small business owners are betting on growth in the coming year even as inflation, labor shortages and economic uncertainty continue to weigh on operations, a new survey shows.
About 80% of small business owners say they are confident in their prospects, and about 79% expect revenue growth by 2026, according to Comerica Bank’s Small Business Pulse Index released on December 9.
Those expecting growth predict an average sales increase of 7.9%.
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FILE PHOTO: Employees of a small business talk to each other. (Getty Images / Getty Images)
To offset rising costs, small businesses are increasingly turning to technology, including artificial intelligence (AI), to increase efficiency and control costs, Franco said.
“We see smaller companies deploying productivity tools and likely outperforming their peers who don’t,” he says.
However, the workforce remains more mixed. The labor shortage and rising costs are making some entrepreneurs “hesitant” to expand their workforce, Franco said.
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FILE PHOTO: A business owner is pictured using a laptop. (iStock)
“As a result, I think small business job growth will be muted in 2026,” he said.
Inflation and rising costs remain the biggest concerns among entrepreneurs, but concerns about labor availability, broader economic uncertainty and increasing ‘decision fatigue’ are also weighing on confidence, according to Franco.
“There is a feeling among the small business owners we regularly visit that they are stuck in defensive mode, rather than being able to focus on building and growing their business,” he said.
According to Franco, cash flow remains an important point of attention in the new year.
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A Comerica Bank branch in Los Angeles, California, on Monday, October 6, 2025. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
“Cashflow is king and remains literally the lifeblood of a small business,” he said. “What I encourage small business owners to do is prioritize liquidity over growth at all costs; trim accounts receivable, tighten inventory and renegotiate supplier terms where possible; and build and maintain a three- to six-month cash cushion.”
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The survey of 1,013 small business owners, conducted between Nov. 4 and 16, found that trust was strongest among technology and healthcare companies, while home construction and real estate companies reported lower trust.
