Small Businesses Showing Growth Despite Inflation Concerns

Inflation has been a major problem plaguing Americans for the past few years. Many people are struggling with rising prices and low wages, but small businesses are actually seeing some light at the end of the tunnel.

Small businesses continue to show resilience even as inflation and other rising costs create growing challenges, according to the U.S. Chamber of Commerce’s Q2 2026 Small Business Index. This index is based on a survey that was conducted from May 19 through June 4, 2026. Overall, the findings suggest that while inflation and other cost pressures are weighing on small businesses, many continue to report stable operations.

The latest index recorded a score of 66.5, nearly unchanged from 67.0 in the previous quarter and slightly higher than the 65.2 recorded during the same period last year.

Inflation Remains a Major Concern

Inflation is now the leading concern among small business owners. According to the survey, 57% identified it as one of their top challenges, an increase from 48% in the second quarter of 2025.

Concerns about inflation varied by industry. Businesses in the services sector were the most likely to identify inflation as a challenge, at 66%, followed by retail businesses at 59% and manufacturers at 58%. Among professional services businesses, 46% cited inflation as a major concern.

Revenue was the second-most common concern, cited by 26% of small businesses. Another 20% said the cost of employee benefits and health care was a significant challenge.

Despite these pressures, 69% of small businesses said their businesses were in good health, the same percentage as the previous quarter. However, the share describing their businesses as being in “very good” health declined from 32% to 27%.

Businesses Remain Optimistic About Revenue

Many small businesses remain optimistic about their financial prospects. The survey showed that 66% expect their revenue to increase over the next year, up from 61% in the first quarter.

Hiring expectations also improved, with 35% of small businesses expecting to add employees during the next year. This was up from 30% in the previous quarter but below the 42% reported in the second quarter of 2025.

Small businesses also remain relatively comfortable with their cash flow. The survey showed that 69% reported being comfortable with their cash flow, compared with 72% last year.

Confidence in the Economy Is Mixed

Small businesses continue to have a more positive view of their local economies than the national economy, although confidence in both remains limited.

Thirty percent of small businesses rated the national economy positively, roughly the same as a year earlier. Meanwhile, only 33% rated their local economy as good. This was down from 41% one year ago.

Learn More About Corporate Law

The right business formation can offer the protection you need when financial crises hit. While larger businesses can benefit from a corporation or LLC formation, sometimes staying as a small business is better.

Have questions about business structure? Contact an Orlando corporate lawyer B.F. Godfrey from Godfrey Legal for answers. We will work to minimize personal liability to the business owner. Call (407) 890-0023 or fill out the online form to schedule a consultation.

Source:

uschamber.com/small-business/small-businesses-show-resilience-despite-rising-cost-pressures