How are economic conditions affecting SMBs?
- 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.
Source: Bredin SMB Report, July 2026
Bredin's SMB MarketPulse goes deeper on how SMBs are responding to inflation, recession concerns and economic uncertainty.
What is the growth outlook for SMBs in 2026?
- 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.
Source: Bredin SMB Report, July 2026
Bredin's SMB MarketPulse goes deeper on SMB revenue expectations and growth priorities.
What are SMB spending priorities for 2026?
- 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.
Source: Bredin SMB Report, July 2026
Bredin's SMB MarketPulse goes deeper on how SMBs plan to invest in technology, AI and other business priorities.
What are the biggest business challenges facing SMBs in 2026?
As of November 2025, search ranks #1 and research reports rank #2 across all SMB segments. Among midsized businesses, ratings and reviews tie for #1.
- 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.
Source: Bredin SMB Report, July 2026
Bredin's SMB MarketPulse goes deeper on the economic, financial and operational challenges facing SMBs.