In a volatile economy, small businesses are holding strong, according to the Comerica Small Business Pulse Index. The report shows that 80% of small business owners are confident in their future success and nearly 8 in 10 (79%) expect sales growth in the coming year – underscoring the sector’s adaptability amid challenging conditions.
“Small businesses have navigated a year filled with challenges, from tariffs and inflation to a prolonged government shutdown – yet their optimism remains unwavering,” says Larry Franco, Comerica Bank Executive Vice President and National Director of Retail & Small Business Banking. “This spirit speaks volumes about the adaptability and determination of America’s entrepreneurs as they prepare for growth in 2026.”
The 43-day federal government shutdown that ended Nov. 13, 2025, left its mark on Main Street. Nearly 3 in 10 surveyed small businesses (29%) reported negative impacts, with the hardest hit areas coming in the D.C.-Maryland-Virginia region (49%), the leisure and hospitality sector (38%), and among firms with 25 or more employees (36%).
Despite these challenges, two-thirds of all respondents said they were unaffected, underscoring the adaptability of many small businesses even amid prolonged policy uncertainty.
With 42% of responding small businesses reporting negative effects from tariffs introduced in 2025, owners took or are considering decisive steps to protect their operations.
Top mitigation strategies already taken or being considered include:
Accessing Credit: 23% of surveyed small businesses take on new loans or tap credit lines; this rises to 26% among female-owned businesses (vs. 21% of male small business owners who reported the same).
Workforce Adjustments: 22% of respondents freeze hiring or lay off staff, with higher rates among firms with 10 or more employees (28%) and retail businesses (24%).
Personal Sacrifices: 18% of respondents tap personal savings, home equity, or retirement funds to offset shortfalls.
Delaying Investments: Nearly 1 in 5 surveyed businesses have delayed or plan to scale back capital expenditures.
“Policy shifts, from tariffs to interest rate cuts, are reshaping how small businesses operate,” added Franco. “While trade challenges have driven rising costs and supply chain disruptions, many owners are responding with creativity and leveraging lower borrowing costs to invest and innovate, signaling a proactive approach to growth in 2026.”
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