Small Business Preparedness Survey 2026 Reveals Optimism Gap
A new survey finds 85% of small business owners expect stronger revenue through 2026, yet 97% feel unprepared in at least one key area.
Small business owners are handling 2026 with strong revenue expectations but significant preparedness gaps. The TD Small Business Year-End Outlook & Preparedness Survey, conducted in Mount Laurel, NJ, on Oct. 5, 2026, reveals that 85% of owners expect stronger revenue through the remainder of the year. Despite this optimism, 97% feel unprepared in at least one key business area for the coming months. Also, 73% say they delayed at least one business investment this year because of economic uncertainty, and 78% are now more optimistic about the U.S. Economy than they were six months ago.
The areas where owners feel least prepared are stark. Technology and operations is the top concern, cited by 43% of respondents. AI adoption follows closely, with 40% identifying it as a weakness. Capital and cash flow planning is a concern for 37%, as is inventory management. This widespread lack of readiness exists even as businesses face clear financial threats.
Top Financial Risks
Inflation and staffing costs remain the primary financial threats to small business stability. A majority of owners see rising costs as their biggest challenge, with specific risks breaking down as follows:
| Financial Risk | Percentage of Businesses Citing It |
|---|---|
| Inflation | 55% |
| Staffing costs | 54% |
| Inventory costs | 53% |
| Lower consumer spending | 53% |
These pressures are forcing owners to make difficult choices about where to allocate their resources and seek external funding.
AI Adoption and Investment Priorities
AI usage has surged with 99% of businesses using it in some capacity, and 22% plan to prioritize technology investment in 2027. Compared to six months ago, 77% report increased AI use. The primary applications are for saving time (57%), improving cash-flow decisions (55%), and increasing sales (52%). This adoption is also impacting hiring; 73% of AI users say it has increased their headcount, with 17% reporting a significant increase.
Chris Ward, Head of Small Business Banking at TD Bank U.S., observed the trend. "Small business owners continue to demonstrate remarkable resilience and determination," he said. Growing revenue and sales ranks as the top priority for 2027 for 26% of owners.
Financing Intentions
To fuel future growth and address these preparedness gaps, 62% of small businesses plan to seek financing before the end of 2026. The intended uses for these funds are varied, focusing on modernization and core operations.
| Intended Use of Financing | Percentage Planning It |
|---|---|
| New equipment or technology | 23% |
| AI adoption | 20% |
| Inventory and supplies | 15% |
| Hiring and payroll | 14% |
Alongside growth and investment concerns, fraud remains a pressing issue. 59% of owners report being more concerned about fraud than they were six months ago, with cyber-enabled fraud (39%) and payment or card fraud (38%) as the top specific worries. The drive for financing shows a proactive stance, with 62% planning to seek funds before year-end 2026.
