Small businesses are the backbone of the economy, driving innovation and job growth. Recent data shows that these businesses are not only optimistic about their future but also leveraging new technologies and financing methods to thrive.

Small Business Growth is Strong

The latest Small Business Cash Flow Trend Report, produced by OnDeck and Ocrolus, reveals that in 2026, small business owners are feeling confident about their growth prospects. A remarkable 93% of businesses surveyed expect their operations to expand over the next year, with 32% anticipating significant growth. This level of optimism is a record high for the survey, suggesting that the small business sector is gearing up for a positive trajectory.

However, it’s not all smooth sailing. For the first time, cash flow has emerged as the biggest challenge for many small business owners, affecting 31% of respondents. This concern has overtaken inflation, which sits at 29%. Managing cash flow is essential for a business to continue operations and invest in growth.

Changing Financing Strategies

The report highlights a significant shift in how small businesses are approaching financing. More than 76% of respondents now prefer to bypass traditional banks, indicating an all-time high trust in alternative lending sources. This shift demonstrates that small businesses are seeking flexible financing solutions as they navigate uncertain economic waters.

In planning for 2026, access to credit is a top priority for 46% of small businesses. Consumer spending and interest rates follow closely, influencing many owners’ decisions about how to run and expand their ventures. Interestingly, broader economic risks like trade policy are considered less pressing compared to everyday financial operations.

AI Adoption is on the Rise

In another noteworthy trend, 58% of small businesses reported using Artificial Intelligence (AI) to enhance their operations. This marks a steady increase from previous years, with 89% of AI users noting a positive impact on their businesses. The incorporation of AI tools ranges from improving customer service to analyzing data for better decision-making.

Cory Kampfer, Co-President of Small Business Lending at Enova, emphasized the proactive approach of small businesses: “They’re planning ahead, investing in growth, and finding new ways to operate more efficiently.” The adaptability shown by business owners is crucial for maintaining momentum in a rapidly changing economic landscape.

The Human Element in Financial Decisions

David Snitkof, General Manager of Small Business at Ocrolus, commented on the proactive measures small businesses are taking. Owners are adjusting pricing, exploring new suppliers, and using AI for better control and planning. This adaptability is essential, enabling business leaders to make informed decisions based on clearer visibility into their financial health.

These insights come from a survey involving 651 small businesses with working capital loans in the past 15 months, highlighting an ongoing evolution in small business operations.

What this means for you

The findings from this report are critical as they reflect the broader economic environment affecting everyone. If you ever need to review a financial document related to small business operations, such as a loan agreement, legal-document-to-plain-english-translator/”>AI legalese decoder can help translate it into plain English quickly. Understanding your financial options will be key in navigating the opportunities and challenges ahead.

Source: https://www.prnewswire.com/news-releases/new-report-93-of-small-businesses-expect-growth-in-2026-302759435.html