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BofA Survey: Most Small Businesses See 2026 Growth Despite Inflation, Tariff Strains

Widespread AI adoption, resilient profitability, rising tech spend underpin cautious expansion plans.

Overview

  • Inflation weighs on operations for 88% of owners, with 64% planning price increases and 39% preparing to curb spending.
  • Supply-chain pressures touch 75% of firms; among those affected, 52% are raising prices and 32% report sourcing difficulties.
  • Labor remains tight as 61% cite shortages, yet only 1% plan layoffs and 43% expect to add staff over the next year.
  • Technology investment is accelerating, with 77% integrating AI and Bank of America Institute tracking nearly 8% year-over-year growth in small-business payments to tech services in October.
  • Policy uncertainty persists as 53% say stabilized tariff rules would lift confidence following 2025 cost and hiring pressures.