CaliToday (19/11/2025): A new, comprehensive survey from Bank of America (BofA) reveals a significantly optimistic outlook among the majority of small and midsize business (SMB) owners across the United States, who are entering the next year focused on aggressive growth and expansion.
The findings point to a surging confidence in an economic rebound, heavily influenced by anticipated policy stability under the current administration.
Confidence Levels Soar
The survey highlights strong indicators of returning economic dynamism and belief in future stability:
74% of businesses project an increase in revenue over the next year.
Nearly 60% of businesses are planning to expand their operations in 2026.
This rebound sentiment comes after a challenging 2025, which saw SMBs struggle with tariff policy impacts, high operating costs, supply chain bottlenecks, and sluggish hiring.
Sharon Miller, President of Business Banking at BofA, noted the positive shift: “Business owners are heading into the new year with notable confidence and a clear focus on growth. The data suggests they believe the key economic headwinds of the past year tariffs and inflation will stabilize.”
Roughly half of all businesses surveyed anticipate that the economy, spanning from local to global levels, will improve, driven by expected tariff stability and cooling inflation. Many owners also forecast a major recovery in global supply chains throughout 2026, following severe disruptions experienced in 2025.
The Labor Market Challenge and Hiring Outlook
Despite the economic optimism, the labor market remains the primary friction point for SMBs:
Three out of five business owners reported currently facing staffing shortages, forcing many to work extra hours themselves to cover gaps.
However, the hiring outlook is robust: only 1% of businesses plan to cut staff in the next 12 months, while a strong 43% are planning to add new hires.
Miller attributes the commitment to retaining and expanding staff to the fundamental belief that the U.S. economy, under President Trump’s leadership, will continue to improve across local, national, and global scales.
Inflationary Pressures Easing and the AI Factor
The survey confirmed that the majority of SMBs have continued to contend with cost pressures. Over half of the businesses reported they had to increase prices for their goods and services due to inflation and supply chain issues, mirroring the trend from the previous year. Nevertheless, this rate is expected to slow down as overall inflation eases in the coming months.
A striking highlight of the survey is the rapid adoption of technology: 77% of businesses indicated they have integrated Artificial Intelligence (AI) into their operations over the past five years. This indicates that AI is quickly becoming a core pillar in the development strategy for American small and midsize enterprises, acting as a crucial tool for efficiency and growth in a tight labor market.