The ‘Big Money Show’ panel discusses how small businesses are being squeezed by inflation, high borrowing costs and corporate governance as Wall Street profits soar and Main Street bankruptcies 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 finds.
About 80% of small business owners say they are confident in their outlook, and about 79% expect revenue growth in 2026, according to Comerica Bank’s Small Business Pulse Index released Dec. 9.
Those who expect growth project an average income increase of 7.9%.
“Obviously the challenges are still very heavy, but they remain cautiously optimistic about 2026,” Larry Franco, vice president and national director of retail and small business banking at Comerica Bank, told FOX Business.
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PHOTOGRAPHS OF WOMEN: Small business negotiation workers among them. (Getty Images / Getty Images)
To reduce rising costs, small businesses are increasingly turning to technology, including artificial intelligence (AI), to increase efficiency and manage costs, according to Franco.
“We see small businesses that use productivity tools and may do better than others that don’t,” he said.
However, hiring remains very mixed. Labor shortages and rising costs are making some business owners “reluctant” to expand their workforce, Franco said.
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PHOTOS OF A WOMAN: A business owner is photographed using a laptop. (Stock)
“Because of this, I believe that the growth of job opportunities for small businessmen will be moderate in 2026,” he said.
Inflation and rising costs remain top concerns among business owners, but concerns about labor availability, broader economic uncertainty and growing “decision fatigue” are also weighing on confidence, according to Franco.
“There is a sense among the small businessmen we visit regularly that they are still on the defensive rather than having the ability to focus on building and growing their businesses,” he said.
Cash flow remains a major focus in the new year, according to Franco.
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A Comerica Bank branch in Los Angeles, California, on Monday, Oct. 6, 2025. (Eric Thayer/Bloomberg via Getty Images/Getty Images)
“Cash flow is king and is still the real backbone of a small business,” he said. “What I encourage small business owners to do is prioritize capital over growth at all costs; reduce receivables, tighten inventory, and renegotiate vendor terms where possible; and build and maintain a three to six month cash reserve.”
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A survey of 1,013 small business owners, conducted between Nov. 4 and Nov. 16, found confidence to be strongest among technology and health care firms, while real estate businesses reported low confidence.
