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The “Big Money Show” panel discusses whether small businesses are being crushed by inflation, high borrowing costs and corporate dominance as Wall Street profits soar and Main Street bankruptcies reach record levels.
A lot small business owners Are betting on growth in the coming year, even as inflation, labor shortages and economic uncertainty continue to put pressure on their operations, according to a new survey.
About 80% of small business owners say they are confident in their prospects, and about 79% expect revenue growth in 2026, according to Comerica Bank Small Business Pulse Index released on December 9.
Those who expect growth project a average income increase of 7.9%.
“It’s clear the challenges still weigh heavily on them, but they remain cautiously optimistic about what lies ahead in 2026,” Larry Franco, executive vice president and national director of retail and small business banking at Comerica Bank, told FOX Business.
FILE PHOTO: Employees of a small business chat with 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 manage costs, according to Franco.
“We see that small businesses are leveraging productivity tools and are likely to outperform their peers who are not,” he said.
However, hiring remains more mixed. Labor shortages and rising expenses make some business owners “hesitant” to increase their workforce, Franco said.
THIS FAST-GROWING CHAIN SAYS “NO DISCOUNTS” – AND IT PAYS
FILE PHOTO: A business owner is pictured using a laptop. (iStock)
“As a result, I think small business job growth will be moderate in 2026,” he said.
Inflation and increased costs remain the top concern for business owners, but concerns about labor availability, broader economic uncertainty and growing “decision fatigue” are also weighing on confidence, according to Franco.
“The small business owners we meet with regularly feel like they are stuck in a defensive mode rather than being able to focus on building and growing their business,” he said.
Cash flow remains a key priority heading into the new year, according to Franco.
SMALL BUSINESSES REPORT RECORD MONTHLY INCREASE IN PRICE INCREASES AS INFLATION PRESSURE RISES
A Comerica Bank branch in Los Angeles, California on Monday, October 6, 2025. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
“Cash flow is king and remains the lifeblood of a small business,” he said. “What I encourage small business owners to do is prioritize cash flow over growth at all costs; reduce receivables, tighten inventory and renegotiate supplier terms when possible; and create and maintain a three- to six-month cash reserve.”
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The survey of 1,013 small business owners conducted between November 4 and 16 reveals that confidence is strongest. among technology and health care companies, while housing and real estate companies reported weaker confidence.
