Editor’s Note: This week, we’re featuring a peek into 2026. We asked prominent small business experts and those who serve the small business market to share their perspectives and predictions for 2026.
Hope you’ll join us all week. And if you want to share your viewpoint, or what you’d like us to cover next year, email me at Rieva@SmallBusinessCurrents.com.
Happy holidays!
Rieva
Each new year seems to bring fresh tests for SMBs, and 2026 will be no exception. From rising costs to ongoing global uncertainty, America’s entrepreneurs continue to navigate shifting grounds with the same mix of grit and creativity that has long defined them. But next year will stand out in several significant ways.
Finding Access to Capital
Access to affordable capital and credit to grow a business remains a pressing challenge. Venture capitalists are traditionally very expensive for small business owners to access; SMBs often have too little collateral or poor/limited credit history to impress VCs. Also, weak or incomplete business plans are common red flags.
Small Business Administration (SBA) loans have long been a valuable resource for entrepreneurs; in 2024, the SBA reported that more than $56 billion was “delivered…to small businesses and disaster-impacted communities.” Earlier this year, however, regulations for this reserve changed, making eligibility more difficult. New requirements call for owners and employees to be U.S. citizens and permanent residents. Minimum credit scores for a small business, similar to those for individuals, have been raised. Startups are now required to have a higher cash balance before being considered. Other significant hurdles include rising interest and insurance rates, fewer bank branches across the country, particularly in rural areas, and economic stress that leads smaller financial institutions to tighten loan standards.
Better options for many entrepreneurs are grant programs that have a lower barrier to entry, generally not requiring debt, interest, or company ownership. Money available from government programs or private foundations is non-dilutive capital that goes straight into the business, making it a lower risk than expensive, non-mainstream financing, which can lead to higher delinquency rates.
We’re also excited about emerging new services coming with open banking, especially for business owners who may have lower credit scores but strong P&L statements. These secure tools are reshaping how entrepreneurs engage with financial institutions, streamlining the application process and expanding access to high-quality loans and other resources.
Diversifying Cash Flow
Entrepreneurs increasingly need to diversify their cash flow for several reasons. For one, unpredictable tariffs and rapidly shifting trade policies are creating financial uncertainty that ripples through every industry. Global trade disruptions can trigger transportation delays, higher freight costs, and supplier shortages that strain operating budgets. Payment cycles are also tightening, with more customers demanding shorter terms or upfront payments. As a result, many SMBs are relying more on credit lines, which increases financing costs and adds additional risk. Diversifying cash flow is no longer optional; it’s essential for maintaining stability in a fickle economic environment.
What entrepreneurs need are more proactive and broader strategies beyond a single revenue stream or market. Reducing dependence on single suppliers and bringing production closer to home can help buffer against international upsets. Planning ahead for tariff and currency fluctuations, by locking in exchange rates or adjusting pricing models, adds another valuable layer of protection. Broadening one’s customer base further spreads risk across markets and economic conditions.
Embracing AI
Technology, primarily artificial intelligence (AI), has moved from a novel idea to a necessary baseline tool for most small businesses. AI is no longer just an experiment or something to play with; whether automating back-office functions or powering marketing and customer engagement, it’s required table stakes. SMBs must continue to lean on these tools to drive both efficiency and growth, as they become embedded in everything. AI and automation can manage repetitive tasks, streamline customer support, personalize digital interactions, and turn raw data into useful insights. These technologies free up time, reduce operational strain, and help founders focus on strategy rather than firefighting.
Because the landscape is increasingly complex, it’s also critical to collaborate with seasoned advisors who can guide SMBs through changes in customs, laws, and financial policies. Expertise is available at no cost that uses AI to help small business owners track financial “fitness” and anticipate challenges rather than just reacting to them.
Supportive organizations, such as Hello Alice, provide access to strategic planning resources like expert-built templates and guides, financial tools that clarify cash flow and funding options, and technology comparisons that help founders choose the best platforms for their stage of growth. By tapping into these networks, entrepreneurs can garner connections and support systems that make adapting to new technologies far more achievable.
Staying Positive
Having supported entrepreneurs and founders for years, we see one constant pattern repeat: Even in the face of headwinds, SMBs tend to remain confident about the future. Past crises, including COVID and natural disasters, have trained these small business owners to be better prepared and understand that they can weather the storms.
It’s critical to remember that mistakes happen. No one can escape them—something entrepreneurs and mothers like me—learn early. Inevitably, we will make an error that feels too big to recover from, but studying those missteps and adjusting course is the most valuable investment a business—or parent—can make! Turning setbacks into specific tactics and strategies is a hallmark of success. In fact, those missteps often lay the foundation for the next best moves.
We all know that “it takes a village,” and this is especially true for SMBs: Entrepreneurs don’t have to navigate any of this alone. Nonprofits and organizations that support small businesses offer critical tools, including mentorship, one of the strongest predictors of long-term growth and survival, according to research. Finding the right mentor is an invaluable asset that will help long-term success, providing advice and guidance in unfamiliar areas.
Sharing experiences with fellow entrepreneurs who are navigating similar challenges and opportunities is invaluable. Participating in a community empowers small business owners: Platforms are available to assess a business’s financial health and operational efficiency. Support groups can help analyze customer feedback and reviews, as well as the performance and morale of employees. Networking and establishing peer connections can be as important as funding. Hearing about others’ obstacles and lessons learned can save time and money and provide the motivation and optimism to move ahead in the face of challenges.
Small business ownership is a strange and wonderful journey that demands courage, curiosity, and yes, obsessive drive. But data shows that SMB owners do stay positive through tough times, and this resilience becomes our “super power!”!
Being optimistic doesn’t mean ignoring challenges. It sets the stage to face them with intention and with the belief that opportunity exists in every market cycle. Broader access to capital, smarter AI tools, and stronger relationships will give SMBs more leverage than ever, but the ability to stay hopeful amid rapid change is the smartest strategy. That mindset is what keeps entrepreneurs moving boldly ahead.
Elizabeth Gore is President & Co-Founder of Hello Alice, a financial technology platform serving over 1.5 million entrepreneurs with access to capital, connections, and education. Previously Entrepreneur-In-Residence at Dell Technologies, she now hosts Yahoo Finance’s “The Big Idea” and writes Inc. Magazine’s small business column while serving as an investing limited partner with Portfolia fund and advisor to Ring Ventures.
A former U.S. Peace Corps volunteer in Bolivia and emeritus chair of the United Nations Global Entrepreneurs Council, Elizabeth spent nearly a decade at the UN Foundation as vice president of global partnerships, founding initiatives like Nothing But Nets and Girl Up. Named one of People magazine’s “Top 100 Extraordinary Women,” Fast Company’s “Most Creative People in Business,” and Entrepreneur Magazine’s “Women to Watch,” she has been featured in major media outlets including ABC, CNBC, Bloomberg, CNN, Fortune, and Forbes.
