As you review the index below, you'll notice that many small-business concerns continue to center on finding qualified employees, labor skills, taxes, and interest rates. These are challenges that affect businesses across many industries.
As an executive or future executive, understanding the environment in which small businesses operate—and the challenges they face—can make you a more effective leader. Whether you manage a small business or a larger organization, understanding these concerns helps you make better decisions.
More importantly, if you investigate these issues deeply enough, you may begin to identify opportunities and develop practical solutions to some of these problems.
Main Street Small Business Optimism Remains Steady as Economic Uncertainty Declines
The NFIB Small Business Optimism Index for October 2026 stood at 97.8, down slightly from September and just below its 53-year average of 98.0. The Uncertainty Index declined six points to 84, its lowest level since December 2025.
Labor availability remained the biggest concern for small businesses, with 25% of owners identifying labor quality and availability as their primary operating problem. Taxes moved into second place, increasing to 21%, the highest level since May 2021.
Business owners reported improved financial health. Fifteen percent rated their businesses as excellent and 54% as good, indicating a more positive assessment of overall business conditions.
Expectations improved modestly, with 8% of owners anticipating better business conditions over the next six months. Additionally, 11% reported that it was a good time to expand their businesses.
Inflation and labor shortages continued to create challenges. A net 37% of owners planned to raise selling prices, while 36% reported unfilled job openings. Higher interest rates also added pressure to operating costs.
National Federation of Independent Business. (2026, November 10). New NFIB survey: Main Street optimism remains steady, uncertainty declines in October. https://www.nfib.com/news/press-release/new-nfib-survey-main-street-optimism-remains-steady-uncertainty-declines-in-october/
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