CAMBRIDGE, Mass., [July 17, 2026] — New findings from the latest Bredin State of SMB report show small and midsized businesses (SMBs) strengthening their financial position, investing selectively in technology and artificial intelligence, and pursuing growth with greater discipline than they did a year ago.
Based on a national survey of 500 U.S. SMB principals and Bredin’s proprietary trend data, the Bredin State of SMB report tracks how business priorities, technology investment, AI use and growth strategies are evolving across the SMB market.
Highlights from the latest Bredin State of SMB report include:
Economic challenges
- 43% of SMBs say inflation is having a significant or severe impact on their business.
- 41% believe a recession is already here or very likely to occur.
- Among SMBs expecting a recession, 51% are cutting discretionary spending, 48% are reducing debt and 45% are building cash reserves.
Growth outlook
- Despite economic uncertainty, 71% of SMBs with fewer than 20 employees (very small businesses), 88% of those with 20-100 employees (small businesses), and 95% of those with 100 to 1,000 employees (midsized businesses) expect higher revenue in 2026 than in 2025.
- 60% of SMBs say acquiring new customers is a top business priority over the next 12 months. However, Bredin trend data show that SMBs are less optimistic about acquiring new customers than they were a year ago.
Investment priorities
- 43% of very small businesses, 67% of small businesses and 78% of midsized businesses plan to increase technology spending over the next 12 months, with improving operational efficiency the leading driver.
- 12% of very small businesses, 21% of small businesses and 33% of midsized businesses say AI has enabled company growth to the point that they expect to increase hiring.
Business challenges
- Inflation remains the top business challenge. Bredin trend data also show that macroeconomic uncertainty has emerged as a leading concern for businesses with 20 to 1,000 employees, replacing competition and hiring among their top challenges.
- AI-enabled scams, including fake invoices, deepfake calls and impersonation, are the top fraud concern across SMBs of all sizes.
- 22% of SMBs report that customers are taking longer to pay their bills.
- 39% of SMBs have raised prices to manage rising costs. Very small businesses are the most likely to respond this way, while midsized businesses are more likely to invest in technology to improve operational efficiency.
“SMBs have always adapted to change, but our research shows they're doing it differently,” said Stu Richards, CEO of Bredin. “Rather than waiting for economic conditions to improve, they’re making deliberate decisions now to strengthen their businesses while continuing to invest for growth.”
For more detailed information or to arrange an interview with Bredin contact:
Cat McNamara
Cat@Bredin.com
937-815-5589
About the Bredin State of SMB
The Bredin State of SMB report is a recurring research report that tracks the priorities, challenges and buying behavior of America’s small and midsized businesses. It combines a national survey of 500 U.S. SMB principals with trend data from Bredin’s ongoing proprietary research.
About Bredin
Bredin is a market research firm specializing in the SMB market. For more than two decades, Bredin has helped the world’s leading brands understand, reach and acquire SMB customers in the U.S. and around the world through custom and syndicated research.
