Survey Finds Small Business Optimism For 2026 Growth

November 19, 2025 |By Kelly Hite

NEW ORLEANS — Small and mid-sized businesses are heading into the new year with a notably upbeat outlook according to the newly released 2025 Bank of America Business Owner Report. The nationwide survey, conducted in partnership with the Bank of America Institute, shows that most business owners expect stronger revenues, selective hiring and continued investment

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The report found that 74% of respondents anticipate revenue growth in 2025, and nearly 60% expect to expand their operations.

Across the state, roughly half believe economic conditions will improve (53%) while nationally and globally the number is only slightly less - 48 percent of U.S. respondents and 45 percent of global respondents expect stronger conditions over the next 12 months.

Those confidence levels hinge on several factors:

stabilization in tariff policy (53%)
cooling inflation (52%)
lower interest rates (52%)
more reliable supply chains (39%).

“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.

Labor and Inflation Pressures Remain

The tight labor market continues to shape business strategy. Sixty-one percent of owners say workforce shortages are affecting operations, leading many to work additional hours themselves (50%) or raise wages to compete for talent (40%). Only 1% expect to reduce staff in the coming year, while 43% plan to hire.

Inflation also remains a dominant concern, with 88% of business owners reporting an impact. Most are responding by raising prices (64%) or reworking cash-flow and spending plans (39%).

AI and Technology Investment Accelerating

The report highlights rapid adoption of artificial intelligence (AI) across U.S. small and mid-sized firms. Seventy-seven percent have incorporated AI into their business in the past five years, primarily for marketing (50%), content generation (38%), customer service (37%) and inventory management (28%). Bank of America Institute data shows that small business spending on tech services, including AI, rose nearly 8% year-over-year as of Oct.

Looking ahead, nearly all business owners (91%) plan further digitization over the next five years. Planned investments include expanding digital payment options (52%), improving employee workflows (47%), shifting to more digital-first marketing (45%) and strengthening cybersecurity (30%).

Supply Chains and Succession Planning

Supply chain challenges continue for 75% of those surveyed. Among affected businesses, 52% have raised prices and 32% report difficulty sourcing goods and services.

Long-term planning remains uneven: while 60% of owners say they have a succession plan, 40% have yet to prepare for who will eventually take over the business. Of those who do have a plan in place, 32% intend to pass the business to a family member and 38% expect to sell.

The Survey - 2025 Bank of America Business Owner Report

Ipsos conducted the online survey between Sept. 11 and Sept. 23, capturing responses from 819 small business owners with annual revenue between $100,000 and $4.9 million, and 253 mid-sized business owners with revenue between $5 million and $49.9 million. Responses were weighted to reflect national benchmarks for size, revenue and region.

The findings draw on data from the Bank of America Institute, the think tank the bank established in 2022 to analyze economic and consumer trends using insights from its nearly 70 million clients and more than 58 million digital users. The Institute tracks more than $4.3 trillion in annual payments activity and $1.2 trillion in consumer and wealth deposits, giving it a broad view of small business conditions across the country.

Bank of America, which serves about 4 million small business households through its retail network of roughly 3,600 branches and 15,000 ATMs, commissioned the national survey as part of its ongoing research on business sentiment.