Small and mid-sized business owners in the United States are showing optimism for 2026, with 74% expecting their revenues to rise in the next year and nearly 60% planning to expand their businesses. These findings come from the 2025 Bank of America Business Owner Report, conducted in partnership with the Bank of America Institute.
The report shows that about half of surveyed business owners believe economic conditions will improve at local (53%), national (48%), and global (45%) levels over the coming year. Many respondents indicated that their confidence would be further strengthened by factors such as stable tariff policies, lower inflation and interest rates, and more reliable supply chains.
“Business owners are approaching the coming year with confidence and a clear focus on growth,” said Sharon Miller, President of Business Banking at Bank of America, the nation’s number one small business lender, according to the FDIC. “Many plan to retain their current staff and hire more, and anticipate that local, national and global economies will improve.”
Labor shortages remain a challenge for many businesses. The survey found that 61% are currently affected by staffing issues. Of those impacted, half reported working additional hours themselves due to shortages, while 40% have raised wages to attract talent. Only 1% expect to lay off employees in the next year; instead, 43% plan to increase hiring.
Artificial intelligence has become an important tool for business operations. Over three-quarters (77%) of respondents have adopted AI in some form over the past five years—mainly for marketing, content production, customer service, and inventory management. The Bank of America Institute noted that small business spending on technology services like AI increased by almost 8% year-over-year as of October.
Supply chain issues persist for many companies: 75% reported being affected. Among these businesses, more than half have raised prices for goods or services due to disruptions, while nearly a third struggle with sourcing products.
Inflation continues to impact most business owners—88% say they feel its effects. In response, two-thirds have increased prices and almost four out of ten are reassessing cash flow management.
Looking ahead over the next five years, many business owners plan to focus on expanding their customer base (47%), introducing new products or services (39%), and exploring new marketing approaches (35%). Nearly all respondents intend to adopt more digital tools—including AI—to modernize operations and boost efficiency. Planned initiatives include accepting additional forms of digital payments (52%), improving employee workflows (47%), implementing digital-first marketing strategies (45%), and increasing cybersecurity measures (30%).
Succession planning remains an area where opinions differ: while most do not prioritize an exit strategy within five years (70%), six out of ten have already established a succession plan. Of those with plans in place, about one-third intend to pass ownership within their family; others expect to sell their businesses.
The survey was conducted online by Ipsos between September 11–23, 2025 among U.S.-based small business owners with annual revenues between $100,000–$4.99 million employing two to ninety-nine people—and medium-sized business owners with revenues up to $49.99 million employing up to 499 people.
Bank of America is among the largest financial institutions globally. It serves nearly 70 million consumer and small business clients across approximately 3,600 retail centers in the U.S., operates around 15,000 ATMs nationwide, supports roughly four million small business households through various online products and services—and maintains operations across more than thirty-five countries worldwide.
