Small businesses across the country are at a turning point. On one hand, we have seen encouraging signs of growth, with new ventures emerging and longstanding businesses adapting in creative ways. On the other hand, persistent challenges, ranging from workforce shortages to rising costs, continue to put pressure on owners and operators. For many, this year has been a mix of resilience and reinvention, with an eye toward what’s next.
The outlook isn’t defined by a single trend but by a balance of headwinds and opportunities. By understanding where the challenges lie and where the momentum is building, small businesses can position themselves for stability and long-term success.
The Challenges Small Businesses Are Facing
Across industries, whether in retail, hospitality, or professional services, small businesses are facing challenges that mirror both local and national pressures:
- Staffing Shortages: Recruiting and retaining qualified employees continues to be a major hurdle, affecting customer service, productivity, and overall growth potential.
- Rising Costs: Increases in goods, services, and utilities are squeezing margins and forcing difficult decisions about pricing and spending.
- Complex Financing: Although funding programs have expanded, navigating them and securing affordable financing remains a significant challenge.
- Compliance Burdens: Tax law changes and new requirements like the Corporate Transparency Act are creating additional strain, particularly for businesses without dedicated legal or financial teams.
- Technology Pressures: As digital tools become essential, businesses are expected to modernize operations while also protecting customer data, something that can be difficult without the right expertise or resources.
These issues are real, but they also present opportunities for businesses to evolve, adapt, and strengthen operations. With the right guidance, challenges can be reframed as pathways toward growth.
Reasons for Optimism
There is plenty of momentum and entrepreneurial energy in the small business community. New ventures are launching across industries such as technology, wellness, food, and retail, signaling innovation and resilience. Many business owners are embracing digital transformation, seeking out strategic partnerships, and investing in tools that will position them for long-term success.
A great example of this entrepreneurial spirit can be found in Brighton, NY, where a close friend of mine and her partner recently opened a franchise, Oxygen Yoga & Fitness, a wellness brand originally based in Canada. Despite facing a complex landscape, including international tariffs, securing financing, recruiting instructors, and building a membership base, all while working full-time jobs, they made it happen.
Their journey is a testament to what’s possible with determination, vision, and community support. The small business world continues to be incredibly welcoming to new businesses, especially in the health and wellness space. Stories like theirs remind us that even in the face of adversity, small businesses can overcome adversity and continue to grow, innovate, and even thrive.
Support from local organizations and grant programs continues to grow, offering expanded access to capital and resources. Combined with the determination of entrepreneurs, these developments provide a strong foundation for optimism in the year ahead.
Preparing for the Year Ahead
As 2026 approaches, there are two key steps small business owners can take to strengthen their position:
- Plan Intentionally: Reviewing financials, updating budgets, and setting realistic goals now can help avoid costly surprises later. A proactive approach ensures that decisions are made with clarity and confidence.
- Leverage the Support Network: Accountants, bankers, mentors, and peers provide valuable perspective and expertise. Relying on this network helps business owners navigate uncertainty and seize opportunities with greater assurance.
A Trusted Partner in Every Season
Every business experiences ups and downs. What matters most is having the right systems, strategies, and support in place to weather challenges and celebrate successes.
At TBG, we are committed to serving as more than just an accounting firm. By offering insight, strategic guidance, and unwavering support, the goal is to help small businesses make informed decisions, maintain stability, and chart a path toward sustainable growth.
Small businesses are the heart of our economy, and with the right guidance and perseverance, the best is yet to come.
If you need further guidance or have any questions, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
