Small Business Profitability Takes a Hit: Insights from Bluevine's 2026 BOSS Report

Bluevine's 2026 Business Owner Success Survey Overview

In a recently published report by Bluevine, the largest digital banking platform dedicated to small businesses in the United States, significant insights about the state of small business profitability have emerged. The findings from the 2026 Business Owner Success Survey (BOSS) illustrate a marked decline in profitability expectations, with forecasts dropping nearly 50% compared to the previous year.

Declining Profitability Expectations

According to the survey results, only 30% of small business owners reported achieving profitability above their expectations at the end of 2025, a stark decrease from the 57% recorded at the end of 2024. This alarming trend highlights the challenges small business owners face amidst fluctuating economic conditions. Rising costs for supplies and persistent inflation are major contributors to these financial strains, with 34% of owners noting the impact of increased supply prices and 31% citing inflation as a direct challenge to their business operations.

To combat these pressures, approximately 28% of small business owners raised their prices last year, showcasing the tough choices they are compelled to make to maintain their viability in a competitive market.

Optimism Amidst Challenges

Despite the stark statistics, small business owners remain optimistic about their financial future. An impressive 78% of survey participants expressed hope for improved profitability in 2026, signaling strong resilience and determination. When queried about the macroeconomic adjustments they desire for the coming year, nearly half (49%) pinpointed a reduction in inflation or cost of goods as a priority. Other hopeful trends included an increase in demand (46%), lower tariffs (31%), reduced supply chain costs (27%), and an improved labor market (22%).

Bluevine CEO Eyal Lifshitz remarked, “Small businesses face challenges beyond their control, but our surveys indicate they continue to adapt amid uncertainty.