If there’s one theme emerging from recent small business research, it’s that owners are learning to operate in a world where challenges come from every direction. Cyberattacks are becoming more costly, economic uncertainty continues to pressure growth, and administrative inefficiencies are consuming valuable time and resources. Yet despite these obstacles, small business owners remain remarkably optimistic about the future.
Three recent surveys—from Verizon Business, U.S. Bank, and Capital One—paint a picture of entrepreneurs who are adapting rather than retreating. They’re investing in growth, embracing new technologies like generative AI, and looking for ways to improve efficiency, even as they contend with rising costs, cybersecurity threats, and cash-flow concerns. The findings suggest that resilience remains one of the defining characteristics of small business ownership. Here’s a look at what these reports reveal about the challenges—and opportunities—facing small businesses today.
Cyberattacks Are Becoming More Expensive
The median cost of a cyber breach for businesses has nearly doubled since 2019, according to the 2026 Breach Impact Study (BIS) from Verizon Business. From 2019 to 2024, the median breach increased by 80% from $61,000 to $110,000, outpacing inflation.
Business interruption is the fastest-growing and single largest loss driver, surging 51% from 2023 to 2024, from 21% to 32% of known losses. The median cost of $90,000 was the highest among any loss types. In supply chain incidents specifically, business interruption accounts for 50% of all losses.
Company Size Changes The Math
The BIS study also shows that SMB breach losses are “disproportionately damaging,” reaching up to 7% of total revenue in extreme cases, compared to under 2% for mid-market and large enterprises. The SMB median impact is approximately $38,000.
These stats are particularly critical as SMBs typically have fewer resources to invest in robust cybersecurity.
Most SMB cyber incidents were ransomware (39%) and BEC (Business Email Compromise) (19%).
Growth Plans Persist Despite Economic Uncertainty
The 2026 Small Business Perspective Report, Growing Through the Pressure, released by U.S. Bank, reveals that while many businesses (68%) are still expanding, fewer are growing than a year ago amid pressure from economic uncertainty, inflation, rising costs, and shifting consumer spending patterns.
And yet, 91% of small business owners plan to take at least one action to grow their business in the next 12 months.
Some key takeaways:
- 24% of Gen Z business owners “pursue calculated, bold opportunities to accelerate expansion.” And 47% of this group is the most likely to report significant growth.
- 75% of small business owners now use Generative AI in their businesses, with 98% saying it has had a positive impact. Among the 25% of owners not using AI, a lack of relevance and unclear ROI were cited as barriers to adoption.
Confidence Remains Strong—Despite Operational Challenges
Research from the Capital One Insights Center reveals small business owners have “high confidence” (75%) in their business’s future, and 69% say their businesses are primed for future growth.
However, 47% of the SBOs surveyed say their operations either stayed the same or became less efficient over the past 12 months. The report shows the most significant hurdles to growth are not related to product quality or market demand, but rather are the result of back-office friction and tools that often don’t “communicate” with each other, leaving small business owners with too much manual data entry and too little visibility into their overall financial health, resulting in critical information gaps that force reactive rather than proactive decision making.
Budgeting and saving (50%) and securing internal approvals (48%) emerged as the top pain points for the SBOs. And 72% say these internal challenges make it harder to manage and predict cash flow, leaving owners more vulnerable to unexpected financial disruptions.
And 66% say managing administrative tasks gives them less time to focus on customer service.
Most (71%) of SBOs report that more than 25% of their total spending is on credit cards, 66% specifically name credit as a key driver of growth, and 77% say credit is a key factor in achieving business resilience.
Rieva Lesonsky is the founder 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.
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