U.S. small and mid-sized business owners are entering the coming year with renewed optimism, according to the newly released 2025 Bank of America Business Owner Report. The survey, conducted in partnership with the Bank of America Institute, shows that 74% of business owners expect revenues to rise next year, reflecting a cautiously positive outlook following several years of economic uncertainty.
This confidence aligns with Bank of America Institute data showing that small business profitability has remained resilient throughout 2025, even as inflation, labor shortages and supply chain challenges continued to pressure operations.
The survey, which included responses from more than 1,000 small and mid-sized business owners nationwide, offers a detailed picture of how companies are preparing for 2026. Nearly 60% of respondents plan to expand their businesses, while roughly half believe economic conditions will improve at the local (53%), national (48%) and global (45%) levels in the year ahead.
Many business owners indicated their confidence could strengthen further if broader economic pressures ease. Stabilization of tariff policies (53%), lower interest rates (52%), cooling inflation (52%) and stronger supply chains (39%) were among the leading factors that could improve sentiment.
Sharon Miller, president of business banking at Bank of America, said business owners are demonstrating both resilience and ambition. “Business owners are approaching the coming year with confidence and a clear focus on growth,” she said, noting that most plan to retain their current workforce while continuing to hire. Bank of America remains the nation’s largest small business lender, according to FDIC data.
The report highlights several key trends shaping business planning:
Labor Market Pressures:
About 61% of business owners say labor shortages are affecting operations. Among those reporting challenges, half are working more hours themselves, while 40% are raising wages to attract talent. Only 1% expect to lay off employees in the next 12 months, and 43% plan to hire.
Rise of Artificial Intelligence:
AI adoption continues to accelerate, with 77% of business owners integrating AI into their operations in the past five years. AI tools are most frequently used for marketing (50%), content creation (38%), customer service (37%) and inventory management (28%). Payments to tech and AI services are up nearly 8% year-over-year.
Supply Chain Adjustments:
Supply chain issues remain present for 75% of respondents, prompting many to raise prices (52%) or navigate sourcing difficulties (32%).
Managing Inflation:
Inflation remains a challenge for 88% of business owners, consistent with last year’s levels. Companies are responding by raising prices (64%) and reevaluating spending and cash flow strategies (39%).
Looking ahead to the next five years, business owners say their priorities include expanding customer bases (47%), broadening products and services (39%) and adopting new marketing tactics (35%). Nearly all respondents – 91% – plan to integrate more digital tools and AI into their businesses to modernize operations, improve efficiency and strengthen cybersecurity.
Despite this forward-looking mindset, succession planning remains a lower priority. Seventy percent of owners are not focused on an exit strategy within the next five years. While 60% have a succession plan in place, 40% have not prepared for a long-term transition.
The Bank of America Business Owner Report draws on research conducted by Ipsos in September 2025, surveying owners of businesses generating between $100,000 and $49.9 million in annual revenue. The findings suggest that while challenges remain, U.S. businesses are positioning themselves for a year of potential growth and strategic investment.
