Small Business Up, Labor Issue, Profits-August 2026

Small business is the backbone of our society, and we need to foster and support it. Small businesses not only help revitalize our downtowns, but they also create opportunities for a broad segment of society. They give people a place to start their ideas, build wealth, and contribute to an economy that continually renews itself.

So, there is some encouraging news in Bank of America’s report on small businesses. For the most part, hiring is up, although businesses continue to face challenges finding qualified labor. Profitability is also improving, with transportation and manufacturing experiencing some of the largest gains. That is positive news from a small-business perspective.

Travel spending also increased, particularly in areas such as airlines and related transportation. Overall, these are some encouraging indicators. As always, it is important to keep monitoring the statistics and watching what is happening in the broader market.

Small Business Shows Signs of a Summer Rebound

• Small business hiring strengthened during the summer, with Bank of America’s alternative hiring indicator rising 21% year over year in July and NFIB hiring plans reaching their highest level since 2022.
• Labor availability remains a challenge, with 36% of small-business owners reporting that they could not fill available positions in July—the highest level in more than a year.
• Small-business profitability improved, reaching its highest level in more than a year, suggesting that financial conditions may be stabilizing after a difficult start to 2026.
• Transportation and manufacturing businesses experienced some of the strongest profitability gains, while apparel and restaurants saw declines, demonstrating that economic conditions vary significantly by industry.
• Small-business spending increased, particularly on travel. However, travel spending rose nearly 17% while travel transactions increased only 4.5%, suggesting that higher prices—especially for airlines and gasoline—accounted for much of the increase.

Bank of America Institute. (2026, August 18). Small business checkpoint: A summer rebound. Bank of America. https://institute.bankofamerica.com/economic-insights/small-business-checkpoint-august-2026.html

What Are the Characteristics of Adaptive Leaders During Times of Change or Crisis?

Leadership models help us formalize our understanding of how leadership works under different conditions. The study below examines leadership during times of crisis and highlights an important reality: leaders cannot always rely on existing ways of doing things. Sometimes, circumstances require leaders to develop unique solutions to problems.

The study below identifies several characteristics of effective leaders, including flexibility, empathy, innovation, and long-term vision. Leaders need to know where they are going, but they also need to be willing to innovate and adjust their approach along the way.

Empathy is particularly important because leaders must be able to connect with people and understand their emotions and perspectives. Other research has shown that leaders who lack empathy may have difficulty building meaningful relationships with their employees. In turn don't have an intuitive understanding of their needs because they are limited by transactional thinking. A leader may be able to accomplish tasks without strong interpersonal skills, but that approach can sometimes leave a wake of damaged relationships and organizational problems behind. Ultimately leadership will strengthen or weaken an organization. 

Flexibility is equally important because organizations and their environments are constantly changing. Leaders need to recognize when existing approaches are no longer effective and be willing to adapt.

Organizational culture is another important part of this process. When an organization creates an environment that encourages creativity, experimentation, and new ideas, employees are more likely to innovate. A supportive culture can therefore strengthen an organization's ability to adapt when challenges arise.

Overall, there are significant benefits to moving beyond traditional leadership models. Effective leadership is not simply about following established procedures; it is also about knowing when to adapt, innovate, understand people, and respond to changing circumstances.

The study below provides an interesting look at these ideas and how adaptive leadership can help organizations navigate uncertainty.

Adaptive Leadership in Times of Crisis: 

The Importance of Flexibility and ResilienceAdaptive leadership is especially important during periods of crisis because leaders must respond to changing circumstances rather than rely exclusively on established procedures.

1. The study identifies flexibility, empathy, innovation, and long-term vision as important characteristics of effective adaptive leaders.
2. Organizational culture, structure, previous experience with innovation, and organizational strategy can either support or limit the development of adaptive leadership.
3. Leading teams during a crisis is particularly challenging because leaders need additional competencies related to resilience, adaptability, and coordinating people under uncertain conditions.
4. The research suggests that organizations can benefit from moving beyond traditional leadership approaches and developing leaders who can adjust their strategies, support their teams, and respond effectively to changing environments.

Sott, M. K., & Bender, M. S. (2025). The role of adaptive leadership in times of crisis: A systematic review and conceptual framework. Merits, 5(1), 2. https://doi.org/10.3390/merits5010002

The Economic-Social Systems and Freedom of Speech (The hypothethetical Feather Party)

 The hypothetical Feather Party is a learning thought experiment. The purpose of this blog is not necessarily to produce a perfect analysis, definitive answer, or final conclusion. Instead, the goal is to encourage discussion and exploration. If someone presents an alternative perspective, we can simply say, “That’s a great point,” and incorporate it into the conversation. The objective is to explore ideas rather than force an answer, conclusion, or solution.

The hypothetical Feather Party asks us to imagine what a third party of independent voters might look like and how such a group could potentially influence decision-making, particularly at the highest levels of government. We approach the concept from a philosophical and learning perspective.

From that standpoint, a hypothetical Feather Party would generally support policies and decisions that expand and protect freedom of speech. This does not mean supporting speech intended to cause direct harm, but rather recognizing the broader value of allowing people to think independently, share ideas, challenge assumptions, and contribute different perspectives to public discussions.

A healthy society should have room for more than one narrative. People should be able to present competing ideas and perspectives without the expectation that everyone must reach the same conclusion. The purpose is not to force our opinions on others or manipulate the discussion. Instead, it is to create an environment where different perspectives can be considered.

This connects with another learning thought experiment we previously explored through the Allegory of the Clan, which examined economics, social development, bigotry, and the misuse of institutions. When institutions are used to impose particular religious, racial, political, or social beliefs on people, problems can emerge. This raises an important question of purpose and intent: What are institutions supposed to accomplish, and how should they be used? Always support what is right to encourage development.

Freedom of speech can help address these problems before they become larger social conflicts. When people are free to express ideas and challenge prevailing assumptions, society has a larger pool of knowledge from which to develop answers and solutions. Human capital that might otherwise remain disengaged can become part of the discussion.

People should be able to contribute to important conversations without automatically fearing retaliation, losing employment, being targeted, or being excluded simply because they expressed an unpopular idea. Those sometimes can lead to profound breakthroughs in understanding. When people become afraid to participate, society loses potentially valuable knowledge and perspectives.

Ultimately, the hypothetical Feather Party is not intended to provide a definitive political platform. It is simply a learning exercise—a way to explore how independent voters might think about political influence, freedom of speech, social development, and institutional decision-making.

(Illustrative Only)
The average man and
woman seem to have
some great ideas so
let us pass them upward.

So, take it with a grain of salt. There is no predetermined right or wrong answer. If you have a different perspective, that is exactly what makes the thought experiment useful. We can introduce new ideas, challenge assumptions, and modify the model as we learn.

The goal is not to win the argument. The goal is to have the discussion.

Go ahead and read the study.

Three Economic-Social Systems and the Importance of Freedom of Speech

• The article examines the relationship between economic wealth, political systems, freedom of speech, and social well-being, focusing on three systems: plutocracy, autocracy, and democracy.
• The authors argue that plutocracy can generate wealth but may concentrate economic and political power among a small group, limiting meaningful public dialogue and allowing economic interests to influence the media and public discourse.
• Autocracy restricts political participation and freedom of speech because public communication and the media are expected to support the authority of the ruling power rather than encourage open debate.
• Democracy is presented as the system most capable of connecting economic well-being with freedom of speech because public discussion, participation, and competing ideas help citizens address social and economic issues.
• Overall, the article emphasizes that economic prosperity alone does not guarantee social well-being; an open public arena, freedom of expression, and meaningful civic participation are important components of a healthy society.

Mickunas, A., & Kacerauskas, T. (2025). Three economic-social systems and freedom of speech. Transformations in Business & Economics, 24(1), 21–32. https://doi.org/10.15388/Tibe.2025.24.1.1

Serenade: Expressions of Magic in the Moonlight-City Ballet

 If you enjoy the arts, you shouldn’t miss Serenade: Expressions of Magic in the Moonlight, presented by City Ballet. This marks the company’s 34th season.

Intermission

If you’re not familiar with City Ballet, the organization produces cultural events and professional ballet performances throughout the San Diego area. Its vision is to grow into a world-class ballet company, and after seeing this performance, it’s easy to understand that ambition.

While I have done a little dancing  in a different company I can say I appreciate the hard work. That is universal across all people who dance. Performancers practice for weeks and months and it takes a lot of physical and mental focus. 

Some of these dancers are incredibly light on their feet, physically fit, and capable of delivering beautiful, sophisticated choreography. They are on a higher level.

One particularly impressive section of the performance incorporated rings. The choreography, movement, and creative use of the rings were simply fabulous. Seeing how the dancers integrated the equipment into the performance really demonstrated the amount of work, practice, and coordination required to produce a show at this level.

This is a top-notch organization, and the performance is a wonderful example of what professional ballet can bring to the San Diego arts community.

And if you don’t know much about Serenade, it dates back to 1934, making it a longstanding part of the ballet tradition.

City Ballet of San Diego

The genesis of Balanchine’s “Serenade”: a chronology and bibliography

U.S. Business Services Activity Shows Renewed Momentum: S&P Global US PMI August 2026

There is some encouraging economic news to report as U.S. business activity accelerated in August. After several economic indicators have largely been puttering along without showing a clear direction toward either strong growth or decline, this latest report offers a more positive signal. But it comes with some issues in terms of manufacturing weaknesses.

Services are emerging as a key driver of economic growth, although manufacturing remains an important part of a healthy economy. It is still relatively high but showed a decline recently. 

The report also points to increased hiring, with businesses adding new workers as confidence improves. Confidence has value in the market because on a psychological level it impacts perception and in turn investments (In Theory).

Perhaps most importantly, business owners appear to be becoming more optimistic about the economic outlook. While there are still challenges facing the economy, the August data provide some welcome evidence that business activity may be gaining momentum.

U.S. Business Growth Accelerates in August 2026

• U.S. business activity accelerated sharply in August, with the S&P Global Composite PMI rising from 54.5 in July to 56.0, marking the fastest growth since April 2022.
• Services became the primary driver of economic growth, with the Services PMI reaching 56.8, while manufacturing growth weakened, with the Manufacturing PMI falling to 53.2.
• Employment improved significantly as businesses added workers at the fastest pace since January 2025, reflecting stronger confidence and fuller order books.
• Price pressures moderated, with input-cost growth slowing and selling-price inflation reaching its lowest rate since November, although energy costs, tariffs, and supply constraints continued to create inflationary risks.
• The outlook became more optimistic, with business expectations reaching a nine-month high; however, supply-chain delays and manufacturing constraints remained significant challenges to continued growth.

S&P Global. (2026, August 21). S&P Global flash US PMI®. S&P Global Market Intelligence. https://www.pmi.spglobal.com/Public/Home/PressRelease/552d682e429640fcb8af7da17ad060c3

The Lazy Person’s Guide to a Marina Barbecue

Hosting a barbecue sounds like a lot of work—unless you have discovered the ancient art of the potluck.

(Illustrative Only)

This is the method I use for marina barbecues, although it works pretty much anywhere there’s a grill, a bunch of people, and a reasonable chance that somebody remembered to bring food.

Step 1: Make Everyone Else Bring the Food

The first rule is simple: make it a potluck.

Everybody brings something, which means I get to do significantly less cooking and, more importantly, significantly less worrying about cooking.

There’s a grill available, so technically, this qualifies as a barbecue. You just need people to bring things to put on it.

I’ll pick up a few things myself, because I’m hosting and I do have some basic responsibilities. But generally, everybody brings something.

A good rule of thumb is:

• Bring your favorite beverage.
• If you’re going to call it a barbecue, bring some meat or fish.
• Bring at least one side dish.

That last part is optional, of course.

The beauty of this system is that if six people show up with snacks and nobody brings dinner, you can simply announce, “This is a tapas barbecue,” and pretend that was the plan.

Step 2: Keep the Cleanup-to-Fun Ratio Under Control

This is a marina barbecue. It’s outside. It’s casual. Nobody is expecting the Queen’s dining room.

So I like to use disposable stuff—paper plates, paper towels, plastic utensils, whatever makes sense. You eat, you toss it, and you move on with your life.

Just remember one important detail:

Bring a garbage can.

Otherwise, you’ve successfully eliminated the dishes and replaced them with a garbage problem.

And that’s not really progress.

The Real Point of the Barbecue

Of course, how you do this depends on who’s coming.

With this particular group, everybody already knows each other. We’ve been doing this for a long time. There’s no reason to impress anybody. We’re not trying to win a Michelin star for marina grilling.

We’re just getting people together to have some fun.

If you’re bringing new people into the group, there is a little more to think about. You could get strategic about it—maybe 60% people you already know and 40% new people, so the newcomers have a chance to meet everyone and get acclimated.

There are people who are very good at that kind of social networking. Socialites. Social climbers. People who seem to have a seating chart for their friendships.

I’m not really that strategic.

My approach is more:

“Hey, I met this person. They’re cool. Come on over.”

Then I introduce them to a few people and let nature take its course.

Why It Matters

And honestly, that’s probably the bigger point of the whole thing.

Life is a long journey, and the quality of your relationships has a pretty big impact on how you experience it.

You need good friends.

You need good family.

And it’s good to have a variety of people in your life—different personalities, different backgrounds, different perspectives. They keep things interesting and, occasionally, keep you from becoming completely ridiculous.

So yes, a marina barbecue is about burgers, fish, side dishes, drinks, paper plates, and figuring out who forgot the charcoal.

But mostly, it’s an excuse to get people together.

And sometimes that’s all the excuse you need.

Bring some food. Bring a drink. Bring a friend.

Summer BBQ Ettiquette

Earn Your Place at the Cookout

Firefighter Staffing Crisis: The Need to Recruit, Train, and Retain Volunteers

 Firefighters put themselves at significant risk, often with little financial compensation. Most of the nation’s fire departments are volunteer-based, meaning firefighters may receive only a small stipend for responding to emergencies. In some communities, that might be around $25 show up for fighting a fire, even if they spend eight hours in the elements rolling and pulling hoses, searching structures, and working in dangerous conditions. A special kind of devoted volunteers willingly sign up for that.

(Illustrative only)

Just saying this type of
activity can create
qualified leaders.
 

The staffing problem becomes even more apparent during major wildfires, when departments need additional personnel but often struggle to find enough qualified people. As extreme weather and large-scale fires appear to be becoming more frequent, regardless of how one views the causes, the demands on fire departments are likely to increase. At the same time, recruiting and retaining volunteers is becoming more difficult because the work requires significant training and carries substantial personal risk.

Low compensation is another major challenge. In some cases, someone could make considerably more working at a fast-food restaurant than volunteering as a firefighter. We need to think creatively about how to attract and retain people in these fields. For younger people who may not want to pursue military service, firefighting could provide another pathway. Some states have already experimented with incentives such as college assistance, and similar programs could be expanded.

For example, firefighters could receive free or subsidized college tuition after serving a specified number of years. Departments could also provide valuable technical training, such as mechanics, emergency equipment maintenance, or other certifications, in exchange for a commitment to serve (I sort of thought pairing firefighting training with leadership training-team building might work. 🤷). All that seem to strengthen responder capacity. These programs could give young people practical skills while strengthening the volunteer firefighting workforce.

Ultimately, communities need to consider the costs of hiring more full-time firefighters versus expanding volunteer programs through stipends, on-call pay, training incentives, and other forms of compensation. Either way, we are going to need more people capable of doing this work.

If you are interested in supporting a fire department in Michigan’s Upper Peninsula that currently has 12 young recruits who need training and equipment, send me a message to the right. I can connect you with the appropriate people.

U.S. Firefighters Face Critical Staffing Shortage Amid Severe Wildfire Season

• The U.S. Forest Service is facing a significant firefighter shortage as the 2026 wildfire season intensifies, with crews reporting that staffing levels are insufficient to meet growing demands.
• Recruitment and retention problems have been worsened by low pay, difficult working conditions, and employee departures; the Forest Service reportedly lost nearly half of its permanent workforce between 2021 and 2024.
• The shortage extends beyond frontline firefighters to experienced managers and supervisors, creating coordination problems and leaving some available equipment and contracted resources unused.
• The 2026 wildfire season has placed additional pressure on the system, with more than 49,200 fires burning over 7.2 million acres by August and more than 600 resource requests going unfilled during one 72-hour period.
• Staffing shortages are also limiting prevention efforts, including prescribed burns, raising concerns that inadequate investment in the firefighting workforce could make future wildfire seasons even more difficult to manage.

Canon, G. (2026, August 19). Firefighters sound alarm as US faces critical staffing shortage: ‘We don’t have enough people’. The Guardian. https://www.theguardian.com/us-news/2026/aug/19/us-firefighters-staffing-shortage