How Small Business Can Win in 2026, an important report from LinkedIn, offers an optimistic outlook for the future of small businesses. But, the report warns, “Small businesses are navigating a defining era. Technology is moving faster, earning attention is harder than ever, and trust and relationships matter more. These shifts are reshaping how businesses set priorities for the future.”
Despite those concerns, LinkedIn notes that “entrepreneurial spirit is taking off,” thanks to AI. Globally, almost 40% of professionals say, “AI has made them more likely to start their own businesses.” And over 60% of small business leaders say starting and running a business is easier today because of AI.
Plus, it reports that “The number of members adding ‘founder’ to their profile has jumped 60% year -over -year and nearly tripled since July 2022.” And this isn’t about people “reacting to tough times”—rather, the report says, wanna-be entrepreneurs are “choosing to build something new and take control of their futures.”
The report urges both those considering launching a company and those building their existing businesses to understand how to navigate change in the coming year. LinkedIn’s research reveals there are three clear paths going forward:
- AI adoption gives you speed and scale.
- Brand credibility builds the visibility and trust that make people notice.
- Networks create the influence that turns attention into opportunity.
Together, these three forces will emerge as the new growth engines for small businesses.
While How Small Business Can Win in 2026 delves into all three factors, I’m just going to focus on AI here (which is why I recommend you read it).
AI: The Equalizer Small Businesses Need
Most (60%) small business owners say, “adopting new technology is the biggest opportunity for small businesses today,” and 45% say it’s their top priority. And that doesn’t mean only adopting AI, but also “building the skills to use it.”
The good news is that small businesses (those with 11-50 employees) are amping up their AI proficiency. These companies “saw AI engineering skills grow 19% year-over-year, outpacing large companies at 14%.” And AI literacy surged 44% among that same group. LinkedIn says “smart” small businesses are investing in both.
The Stakes and Opportunities Are Enormous
According to the report, “Generative AI could unlock trillions in global productivity, with small and medium-sized businesses poised to capture 30% or more of that value. And it’s important for small business owners to embrace this because, as the report says, “This isn’t just about venture-backed startups chasing unicorn status. The graphic designer is going solo. The restaurant owner is staffing up to address increasing customer demand. Software teams are spinning out of larger companies that move too slowly. From solopreneurs to early-stage startups, entrepreneurs are building businesses that solve real problems in their communities and industries.”
The Business Case for AI Adoption
According to the report, 85% of small businesses across several countries are using AI in some form. While most are in the early stages of implementation, momentum is building. And, according to LinkedIn’s Executive Confidence Index, “59% of small business executives plan to adopt AI across their organization in 2026,” up five points from last year.
The report recommends that small businesses move from experimentation to adoption. And it advises that “Many of the tools small businesses already rely on are strategically integrating AI to help save time, reduce costs, and unlock new opportunities.”
Don’t worry about not having the resources. LinkedIn says you don’t need massive investments or specialized teams to get started. And the payoff? “AI can automate routine tasks in customer service, generate marketing content, streamline the hiring process, and enhance decision-making with data insights previously only unlocked by enterprise clients.” For small, local businesses, “these capabilities can level the playing field in ways unimaginable compared to just two years ago.”
Invest in AI
The report says AI is a great equalizer and is “giving every small business the new blueprint they need to compete in arenas they never thought possible, because what’s up for grabs is hard to pass up. Small businesses are proving they can set the pace, not just follow it.”
What can you do? LinkedIn advises small businesses to “Use tools that automate repetitive tasks and solve business problems like building a pipeline of qualified candidates, managing marketing campaigns, creating content, or starting your first draft of an email. Empower your teams to use and upskill on AI while doubling down on communication, problem-solving, and adaptability.
Why AI Matters to Your Small Business
Aneesh Raman, LinkedIn’s Chief Economic Opportunity Officer, says, “We should all be rooting for small businesses right now. They create the majority of new jobs globally, especially in emerging markets, and AI gives them a real shot to compete in ways that weren’t possible before. The entrepreneurial skills you develop building something from nothing— resourcefulness, speed, creativity—are exactly what this economy will reward most.”
This is no time to be like the proverbial ostrich burying its head in the ground. As the report says, “Small businesses understand the landscape is changing fast, and AI is at the center of that change.” And the central question for you isn’t whether to adopt AI, but how quickly you can move and what happens if you don’t.
Rieva Lesonsky is President of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy: ASA Design Studio for Unsplash+
