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Small Business Index Q1 2026

Current Challenges

Most Say Inflation Is a Top Concern

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Almost One In Five Say Affording Employee Benefits Is A Top Worry

53%
of small businesses say inflation is a top concern.

Inflation continues to be the top issue facing small business owners. A majority (53%) of small businesses say inflation is a top concern. This is up from last quarter when 45% said the same. Inflation has been the top challenge facing small businesses for 17 consecutive quarters (over four years).

Revenue remains the second most cited challenge at 30%, unchanged from last quarter. Concerns about revenue are more acute among businesses in professional services (36%), services (32%), and retail (28%)—than manufacturing (17%).  

Nearly one in five (19%) small businesses say affording employee benefits or healthcare is a top challenge, up from 14% at this time last year. This is highest reading for this measure since tracking began in Q1 2023. On the other hand, concerns about employee retention (9%) fell sharply compared to last quarter (17%).

Chris Barber - Chief Nerd of Cheaper Than A Geek, Crofton, Maryland