Small businesses are weathering macroeconomic volatility and they are trailblazing new paths for operational agility, non-traditional capital access, and integrating AI into their businesses.
Two recent reports, the Q2 2026 Small Business Cash Flow Trend Report by OnDeck and Ocrolus and the U.S. House Committee on Small Business hearing, "AI on Main Street: How AI is Shaping the Future of Small Business", both provide insights into where small businesses are heading.
The data and research reveal that AI is no longer an emerging novelty for small businesses, but fundamental operating infrastructure. Despite ongoing macroeconomic pressures, small business optimism remains remarkably resilient. According to the OnDeck and Ocrolus report, 93% of small business owners express confidence in their growth prospects over the next year, but there are also concerns.
The cost of doing business continues to shift, with inflation reclaiming the top spot as the primary operational hurdle for small businesses at 34%, surpassing cash flow challenges at 30%. Also, 75% of small businesses reported bypassing traditional banks for working capital in Q2 2026. They are choosing lenders with better transparency, data visibility, and operational efficiency, and these are the exact same reasons small businesses adopt technology. AI adoption among small businesses is accelerating. The OnDeck/Ocrolus survey found that 61% of small businesses report actively using AI, an increase from 58% in Q1 2026, with 91% of AI users reporting a positive impact on their business.
During the House Committee on Small Business hearing on July 14, 2026, Chairman Roger Williams highlighted how AI is reshaping ground-level execution: "Artificial intelligence is rapidly becoming one of the most valuable tools available to small business owners. From streamlining product sourcing to improving inventory management, AI is helping entrepreneurs spend less time on routine tasks and more time growing their businesses and serving their customers."
A common misconception is that AI adoption is restricted to tech startups. Testimony from the House Small Business Committee hearing dispelled this myth, calling out that while adoption reaches approximately 70% among tech firms and 65% in entertainment, roughly 50% of retail, restaurant, and traditional brick-and-mortar operations are actively using AI to grow and maintain margins.
While the benefits of AI are tangible, wide-scale adoption faces real barriers, including:
- 1 in 5 small businesses report an inability to find properly trained workers to deploy AI tools.
- One-third of non-adopting businesses cite regulatory uncertainty, while another one-third are unsure how AI fits into their specific workflows.
- Model choice and accessibility are imperative to keep costs manageable, with the flexibility to choose between proprietary (closed) and open-source AI models.
The small businesses winners will be the ones who leverage technology to stay nimble, efficient, and relentlessly focused on customer value.