America’s small business owners are entering the final months of 2026 optimistic about growth, even as preparedness gaps and economic uncertainty continue to shape their decisions, according to the new TD Small Business Year-End Outlook & Preparedness Survey, conducted by Wakefield Research.

Despite a year marked by economic uncertainty that caused many to postpone investments, small business owners are increasingly looking ahead, preparing to invest in their businesses, adopt new technologies, and position themselves for growth in 2027.

The survey found that 85% of small business owners expect revenue to be stronger through the remainder of 2026, while 78% are more optimistic about the U.S. economy than they were six months ago. At the same time, 62% expect to seek financing before year-end, signaling continued interest in investment as businesses prepare for what’s next.

“Small business owners continue to demonstrate remarkable resilience and determination,” said Chris Ward, Head of Small Business Banking, TD Bank U.S. “While many are still navigating challenges ranging from rising costs to ongoing uncertainty, our survey shows they’re increasingly focused on growth and planning for future investment. Whether it’s adopting AI, expanding operations or preparing for the opportunities ahead, business owners are looking for trusted partners who can help them turn confidence into action.”

Small Businesses Look Ahead with Confidence Despite Preparedness Gaps

Small business owners are heading into year-end with renewed confidence, fueled in part by expectations of stronger customer demand, with 85% expecting customer spending at their business to increase compared with the same period last year.

Yet that optimism is tempered by clear preparedness gaps:

  • 97% feel unprepared in at least one key area of their business for the remainder of 2026.

  • 43% cite technology and operations and 40% cite AI adoption among the areas where they feel unprepared, followed by inventory management and capital and cash flow planning at 37% each.

  • 73% say they delayed at least one business investment this year because of economic uncertainty.

Despite these challenges, small business owners remain focused on the future, with many planning to invest in the tools, technology and financing needed to support growth.

Financing and Technology Fuel Growth Plans

Owners are balancing financial discipline with investment. Among those expecting to seek financing, the leading intended uses include:

  • New equipment or technology (23%)

  • AI adoption (20%)

  • Inventory and supplies (15%)

  • Hiring and payroll (14%)

Looking beyond year-end, business owners are already focused on the future. Growing revenue and sales (26%) ranks as the top priority for 2027, followed closely by investing in technology or AI (22%).

AI Moves from Experiment to Growth Strategy

The survey also highlights the growing role AI is playing in small business operations and growth.

  • Nearly all respondents (99%) report using AI in some capacity, while 77% say their use of AI has increased compared with six months ago.

  • Business owners report using AI to save time (57%), improve cash-flow decisions (55%) and increase sales (52%).

Notably, AI adoption is increasingly associated with business expansion rather than workforce reduction. Nearly three-quarters (73%) of AI users say AI adoption has increased their headcount, including 17% reporting a significant increase.

Cost Pressures and Fraud Concerns Persist

While business owners are increasingly optimistic, they continue to navigate a complex operating environment.

Inflation (55%), staffing costs (54%), lower consumer spending (53%) and inventory costs (53%) remain among the leading financial risks facing small businesses. Additionally, 59% report being more concerned about fraud than they were six months ago, with cyber-enabled fraud (39%) and payment/card fraud (38%) topping their list of concerns.

Together, the findings suggest that while confidence is returning to Main Street, business owners remain focused on preparedness, modernization and managing risk as they pursue growth opportunities.

Survey Methodology

The TD survey was conducted by Wakefield Research among 200 U.S. small business owners with 100 employees or fewer and annual revenues of $100,000 or more between August 17 and August 28, 2026.

About TD Bank U.S.

TD Bank US Holding Company and its subsidiaries, including TD Bank, N.A., are collectively known as TD Bank U.S. As the U.S. banking business of The Toronto-Dominion Bank (TSX and NYSE: TD), a leading North American financial services firm, TD Bank U.S. serves more than 10 million clients and has a network of approximately 1,050 locations throughout the Northeast, Mid-Atlantic, Carolinas and Florida. We support our clients and communities with a full range of retail, small business, and commercial banking products and services. We also offer customized private banking and wealth management services, a comprehensive suite of credit card products for consumers and businesses, and automotive vehicle financing and dealer commercial services. TD Bank U.S. is one of the largest banks in the U.S. by assets and is headquartered in Mount Laurel, N.J. To learn more, visit www.td.com/us.

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