Small Business & Entrepreneurship Council Indicates Resilient 2025 Encourages Optimistic 2026

(Illustrative Only)

These two are thinking
of starting a new store
focused on dogs and cats
related to custom dog food,
custom treats, and toys
boutique but affordable
on Ludington Street
in Escanaba.

A boutique shop that
caters to locals, attracts 
tourists, and can be 
exported. They
have room to scale locally.

They believe in broad
based capitalism where
micro to medium businesses
are fostered and that
keeps more money in local
communities, redevelops
downtowns, encourages
innovation, hiring goes
up and quality of life
improvements. 

If broad enough it can
influence decision making
by leaders as small 
business needs become
factored into their stakeholder
conception.  Reorienting
to communities and local
wealth generation can change
some of the dynamics.

A report from the Small Business and Entrepreneurship Council indicates a relatively strong sense of optimism among small business owners. Compared to other surveys that show more mixed results, this report suggests that many businesses believe their prospects are improving, with expectations of financial strength, stability, or growth in 2026. Many owners are engaging in business planning, adopting technology, and positioning themselves for continued success.

At the same time, the report notes ongoing concerns about inflation and tax policy. These factors continue to influence decision-making and long-term planning, even among otherwise optimistic business owners. While confidence is high, it is balanced by awareness of economic pressures that could impact future performance.

The discussion also emphasizes the broader role of small businesses in the economy. Policymakers often focus on larger organizations due to their scale and access, but small businesses are typically more adaptable, innovative, and responsive to market changes. They also play a key role in job creation and economic momentum over the long term. This is why their needs should be significant part of policy development.

Maintaining a healthy balance between small and large businesses is essential for a resilient and dynamic economy. Overall, based on this survey, small business owners may feel encouraged about their outlook for the year, even though current emerging global and domestic issues are not fully accounted for in the findings.

Resilient Small Business Performance in 2025 Fuels Momentum for 2026

• 71% of small businesses reported improved financial performance in 2025 compared to 2024, indicating strong year-over-year growth.
• 84% met or exceeded expectations, reflecting overall stability and effective business planning.
• 92% of businesses describe their current condition as stable or growing, showing widespread resilience.
• Key success drivers included revenue focus (51%), adoption of new technologies like AI (38%), cost-cutting, and expansion into new markets or capacity.
• 2026 outlook is optimistic: 81% expect a positive financial year, and 90% anticipate stable or improving conditions in the near term.
• Inflation, economic uncertainty, and tariffs remain top concerns, though some pressures—especially inflation—are beginning to ease.
• Tax relief and policy incentives improved cash flow for many businesses, supporting investment and competitiveness heading into 2026.

Small Business & Entrepreneurship Council. (2026, February 24). New “Check Up” survey: Resilient small business performance in 2025 fuels momentum for 2026. https://sbecouncil.org/2026/02/24/new-check-up-survey-resilient-2025-small-business-performance-fuels-momentum-for-2026/