Regardless of all the challenges they face, small businesses across the board are doing very well in this country. Don’t believe me? Take a look at the latest numbers.
For more than 50 years, the National Federation of Independent Business (NFIB) has published a monthly report on small business economic trends, based on a random sample of the organization’s approximately 300,000 member firms. This survey is one of the longest and most consistent since 1973, using the same questionnaire, of any I have followed. So where do things stand?
Last year ended with a second consecutive monthly increase in small business ownership, with small business owners expecting economic conditions to remain generally favorable heading into 2026. Business owners reported that their cost pressures moderated, employment challenges eased (mostly) and investment increased.
“The December data also bodes well for the major pain point of 2025, with a welcome improvement in uncertainty,” the study’s economists reported.
Fazero’s Small Business Index, which aggregates consumer spending activity from point-of-sale transaction data at 2 million U.S. small firms, highlighted that monthly sales increased in the first month of December.
“The gains in December sales in a competitive holiday season show the resilience of small businesses,” said Prasana Dhore, Chief Data Officer, FISVR. “Consumers focused on accessories and made selective discretionary purchases, driven by ongoing cost pressures. These patterns, resulting in modest monthly sales growth, highlight how small businesses continue to adjust to a difficult economic climate.”
Comerica Bank’s Small Business Plus Index, a survey of more than 1,000 small business owners across the U.S., found in mid-November that 80 percent of respondents were “somewhat or very confident” about their business outlook for the next 12 months, with 79 percent seeing revenue growth in 2026—and an average increase of 7.9 percent. Technology and construction firms were optimistic, while sole proprietors and retail businesses were more cautious. About 57 percent of businesses surveyed said they plan to make capital expenditures, and more than half said recent Federal Reserve rate cuts have positively affected their business.
Intuit, the maker of QuickBooks, publishes its monthly Small Business Index, compiled from transactions in the more than 420,000 small businesses in its database. The company’s January numbers showed small business employment rose modestly, with gains in eight of 12 industry sectors. The company also reported that small business employment increased in all eight U.S. regions and that hiring increased in 13 of 20 states. The index also showed that incomes rose in all US regions compared to November.
That doesn’t mean everyone is doing great. We live in a big country. 33 million are small businesses. We all have different challenges.
NFIB reports that members in the agricultural industry are struggling with dramatically higher revenues and costs, some retailers are seeing slower sales (and increased competition from big box stores), many truckers are struggling with increased regulations and some service firms are struggling to satisfy customers while other prices remain high.
Comerica says small businesses are still very concerned about inflation, rates and regulations, with “most tariff impacts expected to persist or worsen in 2026.”
In the small businesses I work for, finding talent remains a constant problem. And the rising cost of health care — an important employee benefit — is putting enormous pressure on both companies and their employees.
But no one said running your own business was easy. If it was, more people would be doing it. And most people who choose to become business owners will stay in business for more than just a few years.
But, for the most part, American small businesses fared very well in 2025, and a significant majority are optimistic about the year ahead. Maybe the American entrepreneur has this glass-full attitude. We will see.
