Business owners are heading into 2026 with cautious optimism — and a clear appetite for growth. According to Bank of America’s latest Business Owner Report, 74% expect revenue to rise in the coming year, and nearly 60% plan to expand their businesses. Confidence extends beyond their own operations: More than half believe local economies will improve, and nearly half expect national and global conditions to strengthen.

But optimism alone isn’t a strategy. To turn confidence into sustainable success, entrepreneurs must prepare for an environment still shaped by inflation, supply chain challenges and shifting policies.

Here are five actionable steps to help business owners thrive in the second half of the decade.

1. Balance confidence with economic realities

Looking ahead to 2026, business owners are showing strong confidence, with 74% anticipating increased revenue and nearly 60% intending to expand their operations. Their optimism also reflects broader economic expectations, with 53% expecting local conditions to improve, 48% predicting national growth and 45% confident in a stronger global economy.

At the same time, they remain mindful of potential challenges that could influence their strategies, including inflation (70%), tariff policies (64%) and the U.S. political climate (64%).

As they look ahead to the coming year, entrepreneurs would benefit from preparing for a range of possible economic outcomes. Evaluating strategies against both optimistic and challenging scenarios can help ensure they stay adaptable as conditions evolve.

2. Retain and attract the right talent

Hiring remains a priority: 43% of owners plan to add staff, and only 1% expect layoffs. But talent isn’t just about headcount — it’s about finding and keeping high performers who can drive growth. Competitive pay matters, but so do professional development opportunities, compelling workplace benefits and technological investments that make work easier and more rewarding.

Business owners should develop comprehensive talent strategies that include, but go beyond, competitive compensation. By investing in tactics like professional development and technology, they can make their employees’ jobs easier and increase retention. Creating a culture of recognition and open communication further strengthens employee engagement and loyalty.

Additionally, offering flexible work arrangements can help attract a wider pool of talent and accommodate diverse needs. Finally, regularly assessing workforce metrics ensures that strategies remain effective and aligned with both employee satisfaction and business goals.

3. Embrace the digital imperative

Entrepreneurs are embracing digital tools as a growth engine — 77% of business owners have already integrated AI into their operations to support marketing (50%), content production (38%) and customer service (37%). Looking ahead, an overwhelming 91% of business owners plan to utilize digital tools, including AI, in the next five years.

Emerging technologies are enabling business owners to automate routine tasks — like scheduling, invoicing and inventory tracking — allowing employees to focus on more strategic, value-added work. This shift is especially valuable for companies navigating labor shortages, which affect 61% of businesses.

At the same time, as digital adoption grows, nearly one-third of businesses (30%) are prioritizing enhanced cybersecurity measures, including stronger authentication and data protection, to safeguard both operations and customer trust while supporting expansion.

If they haven’t already, business owners should consider strategically investing in digital tools that improve efficiency and customer experiences. A strong digital strategy, designed to fit an individual business’s needs, can boost productivity, create personalized customer experiences and give entrepreneurs a competitive edge.

4. Strengthen financing and cash flow strategies

Even with an optimistic outlook, business owners are navigating a high-cost environment. 77% of owners have experienced rising costs in the last 12 months, with costs increasing an average of 18%. To combat this, 76% have raised prices, averaging a 12% increase.

Additionally, 83% of business owners plan to obtain funding in the next year through business credit cards (53%), personal savings (41%) and traditional bank loans (32%).

To help navigate the current environment, entrepreneurs should develop robust cash flow forecasts and actively track and manage their expenses. Engaging early with a banking partner can also help business owners explore tailored financing options, understand rate implications and optimize their capital structure for stable growth.

5. Build more resilient supply chains

Supply chain disruptions continue, and they are affecting 75% of business owners in some capacity. In turn, many business owners (52%) have had to raise their prices, while 32% are facing difficulties sourcing materials.

To combat disruptions, entrepreneurs should diversify their supply chains and consider local or regional sourcing, where possible. Building strategic inventory buffers and maintaining flexible supplier relationships can also help reduce challenges.

Looking ahead

The late 2020s will reward businesses that combine optimism with discipline. As entrepreneurs look ahead to 2026, they are prioritizing sustainable expansion and pragmatic choices, with a clear willingness to invest in areas that deliver real impact. Many are turning to digital platforms and AI to improve customer experience and increase operational efficiency.

At the same time, they are sharpening their focus on cash management in response to ongoing cost and supply challenges and adopting a more long-term mindset around capital planning and succession to preserve and build on the value they’ve created. Entrepreneurs who stay nimble, invest in technology, prioritize talent and manage finances proactively will be best positioned to turn today’s confidence into tomorrow’s success.