Beyond the Headlines: Understanding the Small Business Economy

Small business owners feel confident about their operations and growth opportunities, even as inflation and economic uncertainty raise concerns about the future.

At the 2026 CO—100 Small Business Forum, Neil Bradley, Executive Vice President, Chief Policy Officer, and Head of Strategic Advocacy at the U.S. Chamber of Commerce, sat down with David Feinberg, SVP of Risk and Insurance at HR tech platform Justworks, to discuss findings from the Q3 2026 Small Business Index survey. Their conversation explored the challenges of attracting talent, the value of personalized benefits, and why emerging technologies could create new opportunities for entrepreneurs.

Small business confidence is fueling hiring and benefits investments

Despite ongoing inflation concerns, small businesses are optimistic about their ability to operate and grow in the current economy.

"Small businesses are confident," Feinberg explained. “They're confident in their own operations, as well as their ability to operate in the world at large. The good news, with that confidence, comes a desire to hire.”

However, with competition for qualified workers remaining strong, businesses are recognizing that competitive compensation alone may not be enough to attract and retain employees. Instead, employers are increasingly focused on offering comprehensive benefits packages that meet employees' needs — outside of health insurance. Feinberg noted that Justworks has seen both hiring activity and benefits adoption increase among its customers.

“Small businesses, to compete for talent, can no longer really lean into that startup culture,” Feinberg explained. “So they need to provide — following that line of logic — a robust benefits package that allows them to attract the talent to fill the jobs that builds the confidence to where they are today.”

[Read more: Hiring vs. Recruiting: A Guide to Finding the Right Talent] 

Personalized benefits are giving  small businesses a competitive edge

When thinking about employee benefits, Feinberg encouraged small business owners to think beyond traditional health insurance and offer comprehensive benefits like commuter benefits, gym memberships, family planning support, and lifestyle spending accounts that can provide meaningful value to employees without necessarily requiring a large investment. 

“This is actually one of the areas where I think small businesses … have an advantage,” Feinberg stated. "Because you have a smaller population, you know exactly what your folks want. Large corporations have to design benefits packages that span everything.”

Feinberg also said Justworks is seeing growing interest in CHOICE Arrangements, or Individual Coverage Health Reimbursement Arrangements (ICHRA), which gives employers another way to support employees' health coverage needs.

“This stuff is confusing,” Feinberg admitted. “Find a partner. It could be a health insurance broker or an HR platform.”

Doing so can help small business owners make informed decisions while freeing up time to focus on core operations.

[Read more: ICHRA vs. QSEHRA: What Is the Difference?] 

AI and strategic partnerships are creating new opportunities for entrepreneurs

Although the recent Small Business Index survey revealed inflation as a concern for small businesses, the data simultaneously reported that small business owners feel confident managing their own cash flow.

"We're in the golden age of entrepreneurship and business formation," Feinberg said. “You see it in the statistics in the U.S. that there’s been a boom in new businesses and a lot of that … [is] powered by AI.”

AI tools are helping entrepreneurs accomplish tasks that previously required additional employees or outside resources, potentially reducing startup costs and improving efficiency during the critical early years of business ownership. But technology alone isn't enough to build a sustainable business, Feinberg explained. Entrepreneurs also need strong operational foundations and trusted advisers. 

"Where we see folks get tripped up is if they don't put in the foundation to start," he said.

[Read more: How to Outsource Everything: A Guide for Overwhelmed Small Business Owners] 

Finding partners who understand small businesses' unique needs and can help them manage compliance, payroll, insurance, and other administrative responsibilities is important. Although some service providers shift their focus to larger customers as they grow, he advised entrepreneurs to seek organizations that remain committed to supporting businesses their size.

“I applaud all of you,” Feinberg said to the entrepreneurs in the audience. “This is not an easy journey. But I think it’s probably the most bullish or exciting time to do it.”

CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.