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Small business owners remain 'cautiously optimistic' heading into 2026 amid rising costs, labor challenges

Many small business owners are betting on growth in the year ahead, even as inflation, labor shortages and economic uncertainty continue to pressure operations, a new survey finds.About 80% of small business owners say they are confident in their outlook, and about 79% expect revenue growth in 2026, according to Comerica Bank’s Small Business Pulse Index released Dec. 9.Those expecting growth project an average revenue increase of 7.9%.”It is evident that challenges are still weighing heavily on them, but they remain cautiously optimistic about what’s ahead in 2026,” Larry Franco, executive vice president and national director of retail and small business banking at Comerica Bank, told FOX Business.HOUSE REPUBLICANS MOVE TO REPEAL PROPOSED BIDEN-ERA HEAT-SAFETY RULE, CITING BURDENS ON SMALL BUSINESSESTo offset rising costs, small businesses are increasingly turning to technology, including artificial intelligence (AI), to boost efficiency and manage costs, according to Franco.”We are seeing smaller businesses leverage productivity tools and are likely to outperform peers who don’t,” he said.However, hiring remains more mixed. Labor shortages and rising expenses are making some business owners “hesitant” to expand their workforce, Franco said.THIS FAST-GROWING CHAIN SAYS ‘NO DISCOUNTS’ – AND IT’S PAYING OFF”As a result, I believe job growth among small

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