Published
September 30, 2026
Small business confidence improved in the third quarter as owners reported stable business health and greater comfort with cash flow, according to the latest Justworks and U.S. Chamber of Commerce Small Business Index.
The Q3 2026 Index score rose four points to 70.5, just below the record 72.0 recorded one year ago.
Strong Business Health and Good Cash Flow
According to the poll, small businesses report stable business health and cash flow.
In fact, seven in ten (71%) small businesses say their own business is in good health. Meanwhile, 72% of small businesses are comfortable with their cash flow, and the share of small businesses rating their health as “very good” rose eight points to 35%.
Few See Good Economy and Inflation Challenges Persist
The good feelings about their own small business do not automatically translate into optimism about the overall economy.
Small business views of the national and their local economies remain muted: Just 27% of small businesses believe that the national economy is in good health (in line with Q2 2026), while 33% say the same about their local economy (unchanged from last quarter).
In addition, inflation remains the most significant obstacle facing small businesses this quarter, cited by 54% of respondents and marking the third consecutive quarter where at least 50% have cited it as a top challenge.
Despite this, 62% of small businesses expect higher revenue in the coming year, while 38% plan to increase investment and 36% expect to add staff.
“Inflation doesn't stay contained to the business side of the ledger; it follows employees home, showing up in their grocery bills, rent, and gas prices. When people are financially stretched outside of work, it shows up inside work too: more stress, less focus, and less capacity to bring their best selves to the job,” said Stevie Straka, VP of people at Blumira, an Ann Arbor, Michigan-based IT security operations company running their business on Justworks.
More Small Businesses Offering Key Employee Benefits
This quarter’s report also examines the investments small businesses are making in their employees.
Seven in ten small businesses offer at least one benefit to full-time employees, with more providing key benefits than last year:
- Health insurance: 46% (up from 41% last year)
- Paid vacation: 40% (up from 30%)
- Dental and vision coverage: 31% (up from 21%)
- Retirement plans: 27% (up from 22%)
Rising costs (35%) and limited budgets (34%) were the most commonly cited barriers to offering benefits.
Despite cost pressures, nearly all small businesses agree that employee benefits are important for demonstrating care for employees (95%), retaining employees (94%), and attracting employees (89%).
The Q3 survey was conducted between August 4–18, 2026. For more findings from this quarter, and to explore years of small business data, visit here.
About the author
Thaddeus Swanek
Thaddeus is a senior writer and editor with the U.S. Chamber of Commerce's strategic communications team.
