Many small businesses are still expanding despite ongoing economic pressures and rising costs, according to a new survey by U.S. Bank.
Small-business owners across generations report ongoing strain from the economic environment (90%), inflation and rising costs (88%), competition (82%) and access to capital (71%). Eighty-seven percent of owners said their business is successful, down from 96% in 2025. Still, owners are continuing to invest in their businesses, with majorities saying they plan to hire additional employees (60%) and invest in capital (56%).
The survey also found that generative artificial intelligence adoption continued to grow, with 75% of owners using it in their businesses. Owners most often applied AI to marketing and sales (56%), data analysis (51%), content creation (51%) and automation (44%).
