Small and mid-sized business owners in the United States are showing cautious optimism for 2026, with 74% expecting their revenues to rise and nearly 60% planning to expand operations, according to the 2025 Bank of America Business Owner Report. The report was conducted in partnership with the Bank of America Institute.
The survey found that about half of respondents believe economic conditions will improve at local (53%), national (48%), and global (45%) levels over the next year. Factors that would increase their confidence include stabilization of tariff policy, lower inflation and interest rates, and stronger 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. “Many plan to retain their current staff and hire more, and anticipate that local, national and global economies will improve.”
Labor shortages remain a significant issue for business owners, with 61% reporting an impact on their operations. Of those affected, half are working more hours themselves due to staffing gaps, while 40% have raised wages to attract talent. Only 1% expect to lay off employees in the next year; instead, 43% plan to hire additional staff.
Artificial intelligence has become a key tool for many businesses. The report notes that 77% have integrated AI into their operations over the past five years. Uses include marketing (50%), content production (38%), customer service (37%), and inventory management (28%). Payments by small businesses for technology services such as AI increased by nearly 8% compared to last year.
Supply chain challenges persist for many business owners—75% say they are currently affected. Among those impacted, just over half have raised prices on goods or services while about one-third face difficulties sourcing products.
Inflation continues to be a concern: 88% report being affected this year as well as last year. As a result, most have increased prices (64%) or reevaluated cash flow strategies (39%).
Looking ahead five years, business owners intend to focus on expanding customer bases (47%), broadening product lines or services (39%), and exploring new marketing approaches (35%). Nearly all surveyed—91%—plan further adoption of digital tools including AI. Their goals include accepting more forms of digital payments, improving employee workflows for efficiency, implementing digital-first marketing strategies, and increasing cybersecurity measures.
Succession planning remains divided among respondents: while most do not prioritize an exit strategy within five years, six out of ten have some form of succession plan in place. Of these planners, about one-third intend to pass ownership within the family; others aim to sell their businesses.
The survey was conducted online by Ipsos between September 11–23, 2025 among small business owners with annual revenues between $100,000–$4.99 million employing two to ninety-nine people—and medium-sized businesses with revenues up to $49.99 million employing up to four hundred ninety-nine people.
Bank of America Institute is a think tank established in 2022 that analyzes proprietary data from millions of clients across consumer banking and wealth management sectors.
Bank of America serves nearly seventy million consumer and small business clients through thousands of retail centers nationwide as well as digital platforms.