Small and Mid-Market Businesses Absorb Costs to Protect Workforce Amid Economic Pressures

Event summary

  • 49% of small and mid-market business owners rate the U.S. economy as 'poor' or 'fair', citing inflation and high interest rates as top challenges.
  • 52% of mid-market businesses and 31% of small businesses added employees in the past year, with 25% of owners expecting to hire in 2026.
  • 37% of business owners increased wages in the past 12 months, and 40% expect to raise wages again in 2026 despite tight margins.
  • 35% of mid-market businesses invested in AI technology in the past year, with 93% reporting a positive return on investment.
  • Only 16% of small business owners and 27% of mid-market owners met with financial professionals for guidance in the past year.

The big picture

Small and mid-market businesses are prioritizing workforce investments despite economic pressures, reflecting a strategic focus on employee retention and benefits. This trend highlights the tension between maintaining operational resilience and managing financial constraints. The survey results suggest that while business owners are optimistic about their own companies' preparedness, broader economic conditions and technological advancements will shape their strategies in 2026.

What we're watching

Economic Resilience
Whether small and mid-market businesses can sustain workforce investments amid economic volatility and potential recession.
Technology Adoption
The pace at which AI and other technologies will be integrated to manage costs and improve efficiency in mid-market firms.
Risk Management
How business owners will balance near-term challenges with long-term goals, particularly in light of limited financial guidance.