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Small Business Optimism and AI Growth Trends in 2026

The latest report from OnDeck and Ocrolus reveals a strong sense of optimism among small business owners heading into the second quarter of 2026. With approximately 93% of owners expressing confidence in potential growth within the next year, it’s clear that small businesses are not only surviving but thriving despite economic challenges.

Consistent Growth Expectations

The data indicates that small businesses are maintaining a steady outlook similar to the first quarter of 2026. The unwavering belief in growth suggests that many owners are aligning their strategies to leverage opportunities in the market. This consistent optimism can be seen as a powerful indicator of resilience in the face of fluctuating economic conditions.

Top Challenges Facing Small Businesses

Despite the positive outlook, challenges persist, with inflation rising to the forefront as the primary concern for small business owners, cited by 34% of respondents. This concern has surpassed cash flow issues, which now affects 30% of businesses. The struggle to manage costs while ensuring profitability remains crucial as owners navigate through these challenges.

Shifting Attitudes Towards Lending

In a notable trend, 75% of small businesses reported bypassing traditional banking systems in favor of alternative lending solutions. This shift indicates a growing need for more agile financing options that traditional banks may not provide. Accessing capital through non-traditional routes, such as online lenders, has allowed small businesses to sustain their operations and invest in growth opportunities more efficiently.

Rising Adoption of Artificial Intelligence

A remarkable finding from the report is that 61% of small businesses are now incorporating artificial intelligence (AI) into their operations, a notable increase from 58% in the previous quarter. Those utilizing AI indicated that it is not merely a passing trend but a key component of their daily operations. An impressive 91% reported a positive impact from AI, suggesting that integrated technology is streamlining processes and improving decision-making.

Cory Kampfer, Co-President of Small Business Lending at Enova, highlighted how small business owners are strategically utilizing AI: "It is becoming part of how they run day-to-day operations." This is reflective of a broader industry trend where businesses are adopting technology to optimize their workflows and improve efficiency.

Data-Driven Lending

The shift towards alternative lending systems translates to data-driven decisions. According to David Snitkof, General Manager of Small Business at Ocrolus, the landscape of small business loans is evolving. The demand for better data visibility allows lenders to make informed decisions, which is crucial for understanding the cash flow dynamics of small businesses. As non-bank loan inflows continue to rise, traditional bank inflows are on the decline, marking a significant shift in the financing landscape.

Comprehensive Survey Insights

The report encompasses insights gathered from 805 small businesses, alongside cash flow data from over 3.76 million applications for working capital financing in the past 15 months. The survey was executed nationwide between June 16 and June 24, 2026. These figures paint a clear picture of the evolving attitudes and preferences within the small business sector.

For further details, insights, and access to the complete survey results, interested individuals can visit ondeck.com/small-business-trends.

Conclusion

Small business owners are demonstrating a remarkable resilience and adaptability in today's economic environment. Their strong optimism, coupled with innovative approaches to financing and technology adoption like AI, underscores an evolving marketplace poised for future growth. As these trends continue to unfold, the role of data and technology will be central to business success and sustainability moving forward.