Small Business Confidence Rises as Owners Report Stronger Business Health and Cash Flow

WASHINGTON, D.C. - Small business confidence improved in the third quarter as owners reported stable business health and greater comfort with cash flow, according to the latest Justworks and U.S. Chamber of Commerce Small Business Index.

The Q3 2026 Index score rose four points to 70.5, just below the record 72.0 recorded one year ago. Seven in 10 (71%) small businesses say their own business is in good health, but just 27% say the same of the U.S. economy, down from 40% a year ago. Meanwhile, 72% of small businesses are comfortable with their cash flow, and the share of small businesses rating their health as "very good" rose eight points to 35%.

"The small business economy remains remarkably steady," said Tom Sullivan, Senior Vice President of Small Business Policy, U.S. Chamber of Commerce. "Owners are telling us their businesses are healthy, cash flow remains solid, and many continue to plan for growth. But they're also clear-eyed about the challenges ahead. Inflation continues to affect nearly every aspect of running a business, from payroll and benefits to long-term planning."

Inflation remains the most significant obstacle facing small businesses this quarter, cited by 54% of respondents and marking the third consecutive quarter where at least 50% have cited it as a top challenge. Despite those pressures, 62% of small businesses expect higher revenue in the coming year, while 38% plan to increase investment and 36% expect to add staff.

"We're entering what we believe to be a golden age of entrepreneurship and small businesses," said Justworks' CEO Mike Seckler. "While the headwinds can't be ignored, this report reinforces that there's real optimism among the small business community compared to the broader economy. As technology advances every day with AI, small businesses will continue to make an outsized impact on the economy, their customers, and their employees."

More Small Businesses Offering Key Employee Benefits

This quarter's report also examines the investments small businesses are making in their employees. Seven in ten small businesses offer at least one benefit to full-time employees, with more providing key benefits than last year:

• Health insurance: 46%, up from 41%
• Paid vacation: 40%, up from 30%
• Dental and vision coverage: 31%, up from 21%
• Retirement plans: 27%, up from 22%

Still, 67% wish they had outside help selecting benefits. Rising costs (35%) and limited budgets (34%) were the most commonly cited barriers to offering benefits.

Despite cost pressures, nearly all small businesses agree that employee benefits are important for demonstrating care for employees (95%), retaining employees (94%), and attracting employees (89%).

"Inflation doesn't stay contained to the business side of the ledger; it follows employees home, showing up in their grocery bills, rent, and gas prices. When people are financially stretched outside of work, it shows up inside work too: more stress, less focus, and less capacity to bring their best selves to the job," said Stevie Straka, VP of people at Blumira, an Ann Arbor, Michigan-based IT security operations company running their business on Justworks.

About the Small Business Index

This quarter marks the first release of the Justworks and U.S. Chamber of Commerce Small Business Index under a new partnership combining the U.S. Chamber's leadership in small business research and advocacy with Justworks' experience helping more than 15,000 small businesses grow and thrive. More information about the partnership is available here.

The Q3 2026 survey was conducted online by Ipsos between August 4 - 18, 2026, among 759 small business owners and operators age 18+ from across the United States. The Q3 2026 Justworks and U.S. Chamber of Commerce Small Business Index is available here.

About Justworks

Justworks is a technology company leveling the playing field for all small businesses. Through its software and as a partner, Justworks helps its customers take care of their teams, streamline their operations and navigate the complex aspects of managing a workforce with confidence. To achieve this, Justworks is uncompromising in its focus on building products for small businesses and understanding their unique needs. Justworks' flexible platform empowers small businesses to assemble powerful self-service capabilities to meet their payroll, tax, global HR, and compliance needs. Plus, Justworks offers 24/7 human support, on-demand expertise and access to high-quality benefits designed for the modern workforce.

About the U.S. Chamber of Commerce

The U.S. Chamber of Commerce is the world's largest business organization and network, representing companies of all sizes across every sector of the economy. Our members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.

They all share one thing: They count on the U.S. Chamber to be their voice in Washington, across the country, and around the world. For more than 100 years, we have advocated for pro-business policies that help businesses create jobs and grow our economy.

Media Contacts

U.S. Chamber of Commerce:[email protected]
Justworks:[email protected]