Last week, we introduced a Priority Matrix outlining seven areas that matter most for strong performance and bankability in 2026.
This week, we shift from planning to the real-world pressures owners are navigating every day. Rising costs, supply chain challenges, and labor shortages are shaping how small businesses operate and make decisions, and the latest data gives us a clearer picture of what this means for the year ahead.
These concerns provide the backdrop for the operational pressures owners are navigating today.
The concerns shaping operational decisions
According to the 2025 Bank of America Business Owner Report, the top issues business owners see over the next 12 months include inflation (70%), tariff policy (64%), the US political environment (64%), interest rates (58%), and recession concerns (57%). These concerns influence pricing, vendor selection, cash flow decisions, and borrowing behavior. They also help explain why so many owners are reviewing operations more closely as they plan for 2026.
Costs and cash flow are under pressure
Seventy-seven percent of business owners say their costs increased over the last 12 months, with an average rise of 18%. During the same period, prices increased by only 12%. This gap signals margin pressure for many small businesses and highlights the need to keep a close eye on costs, pricing decisions, and cash flow needs. Owners are responding by reviewing expenses, tightening spending, and revisiting how they price products and services.
Supply chain instability continues
Seventy-five percent of business owners report that they are still experiencing supply chain issues. Among those affected, 52% raised prices to offset the impact, and 32% are having difficulty sourcing products or supplies. These realities often lead to changes in vendor relationships, inventory planning, and customer communication. For many small businesses, refining procurement strategies and building more resilient supply chains can help reduce operational risk.
Labor challenges are shaping staffing decisions
Labor shortages remain a real constraint. Sixty-one percent of owners say they are impacted, and half are working more hours to fill the gaps. Others are offering higher wages or investing in tools that make the team’s work more efficient. Simple digital tools and workflow improvements can support productivity without adding headcount.
As you review your own plans for 2026, reflect on which of these pressures you are experiencing the most. In the next article in the series, we will explore the strategic decisions business owners are prioritizing for long-term growth.
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