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2026 Mid-Year Pulse Survey

This Mid-Year Pulse Survey reflects 332 responses collected via an online survey fielded through SurveyMonkey's general respondent audience between late June and mid-July 2026. Unlike the annual Business Insights Report, this panel was not pre-screened or verified as active business owners. A subset of 84 respondents has since been identified as existing Fora Financial customers, based on distribution channel and response timing; the remaining 248 are treated here as the web/prospect cohort.

Key Findings

Performance Holds Steady at Midyear

75% of business owners say 2026 is meeting or beating their expectations so far, with 28% outperforming plans.

Cash Flow Is the Defining Pressure

57% say cash flow has become more challenging since January, well ahead of inflation (42%) and access to capital (33%).

Caution, Not Retreat

68% are proceeding with plans, either as normal or more carefully, while just 6% are actively pulling back.

Financing and Price Increases Lead Adaptation

Raising prices (33%), seeking new financing (31%), and adopting new tech or AI (31%) are the top steps businesses have taken.

Mid-Year Performance & Outlook

How 2026 Is Performing vs. Plan Donut chart showing how businesses are performing relative to expectations set at the start of 2026. 28% are performing better than expected, 47% about as expected, and 25% worse than expected. How 2026 Is Performing vs. Plan 28% 47% 25%
  • Better than expected
  • About as expected
  • Worse than expected

Compared to your expectations at the start of 2026, how is your business performing at the midpoint of the year? (n=332)

Three in Four Businesses Are Meeting or Beating Plan

Asked how their business is performing relative to expectations set at the start of the year, 47% say results are about as expected and 28% say they are outperforming. Only one in four report falling short at the midpoint.

75% of business owners say 2026 is meeting or exceeding expectations at the midpoint

Mid-Year Pulse Survey 2026: Change in Customer Demand Over the Past Six Months Bar chart showing how customer demand has changed in the past six months. 32% say demand stayed about the same, 27% say it strengthened somewhat, 19% strengthened significantly, 14% softened somewhat, and 8% softened significantly. Change in Customer Demand, Past Six Months Stayed about the same 32% Strengthened somewhat 27% Strengthened significantly 19% Softened somewhat 14% Softened significantly 8%

Has customer demand for your products or services changed in the past six months? (n=308)

Customer Demand Is Strengthening More Often Than It's Softening

45% of business owners report demand has strengthened over the past six months, more than double the 22% who report a softening. A third say demand has held steady, pointing to a market that is expanding more than it is contracting.

Pressures & Uncertainty

Mid-Year Pulse Survey 2026: What Has Become More Challenging Since January Bar chart showing which areas have become more challenging for businesses since January 2026. Cash flow leads at 57%, followed by inflation and rising costs at 42%, access to capital at 33%, staffing and labor costs at 27%, economic uncertainty at 26%, technology and AI adoption at 13%, no change or improved at 11%, and tariffs and trade policy at 11%. What's Grown More Challenging Since January Cash flow 57% Inflation/rising costs 42% Access to capital 33% Staffing/labor costs 27% Economic uncertainty 26% Tech/AI adoption 13% No change/improved 11% Tariffs/trade policy 11%

Which of the following have become more challenging for your business since January 2026? Select all that apply. (n=312)

Cash Flow Is the Clear Leading Challenge Since January

57% of business owners say cash flow has become more challenging since the start of 2026, well ahead of inflation and rising costs (42%) and access to capital (33%). Tariffs sit at the bottom of the list at 11%, on par with businesses reporting no change at all, a sign tariffs aren't the pressure still accelerating this year.

57% say cash flow has become more challenging since January 2026

Recession Fears Persist, But Few Are Standing Still

Six in ten business owners think a recession before the end of 2026 is at least possible, yet most are pressing forward: 68% are moving ahead with plans as normal or proceeding more carefully, and only 6% are actively pulling back.

Will the U.S. Enter a Recession Before End of 2026? Donut chart showing business owners' recession expectations. 26% say a recession before the end of 2026 is likely, 34% say it is possible, 29% say no recession, and 12% are not sure. Will the U.S. Enter a Recession Before End of 2026? 26% 34% 29% 12%
  • Likely
  • Possibly
  • No
  • Not sure
Mid-Year Pulse Survey 2026: How Businesses Are Responding to Uncertainty Bar chart showing how businesses are responding to economic uncertainty. 35% are proceeding with plans more carefully, 33% are moving forward as normal, 16% are waiting for more clarity, 10% are using uncertainty as an opportunity, and 6% are actively pulling back. How Owners Are Responding to Uncertainty Proceeding, more carefully 35% Moving forward as normal 33% Waiting for more clarity 16% Using it as an opportunity 10% Actively pulling back 6%

How Business Owners Are Adapting

Mid-Year Pulse Survey 2026: Changes Businesses Have Made Since January Bar chart showing changes business owners have made since January 2026. 33% raised prices, 31% adopted new technology or AI, 31% sought new financing, 30% reduced operating costs, 18% made no significant changes, 16% reduced headcount or hours, 16% renegotiated supplier terms, 14% hired new employees, and 9% built up cash reserves. Changes Made Since January 2026 Raised prices 33% Adopted new tech/AI 31% Sought new financing 31% Reduced operating costs 30% No significant changes 18% Reduced headcount/hours 16% Renegotiated supplier terms 16% Hired new employees 14% Built up cash reserves 9%

Since January 2026, have you made any of the following changes to how you run your business? Select all that apply. (n=299)

Pricing, Financing, and Cost Cuts Lead the Response

Since January, business owners have leaned hardest on raising prices (33%), seeking new or additional financing (31%), and adopting new technology or AI tools (31%). Nearly one in five report no significant changes at all.

70% of business owners say they are at least somewhat confident about finishing 2026 strong

How confident are you in your business's ability to finish 2026 strong? (n=294) | Very + somewhat confident combined.

Customer vs. Web Cohort

Same Pressures, Different Playbook

84 of the 332 respondents have been identified as existing Fora Financial customers (surveyed via a separate, earlier channel); the remaining 248 are treated as the web/prospect cohort.

Inflation, Not Cash Flow, Tops Customer Concerns

Customers rank inflation (55%) above cash flow (50%) as their top challenge since January — the only cohort where that happens. Web respondents still rank cash flow first, and more dominantly (60% vs. 37% inflation).

Customers Are Hiring, Prospects Mostly Aren't

30% of customers hired new employees since January vs. just 8% of the web cohort — the widest gap of any measure in the survey.

Customers Report Stronger Demand

54% of customers say demand has strengthened vs. 42% of the web cohort, and customers are notably more recession-resistant (38% say no recession vs. 25% of web respondents).

Prospects Talk Opportunity, Customers Take Action

The web cohort is 3x more likely to say they're "using uncertainty as an opportunity" (13% vs. 4%), yet customers are the ones actually raising prices, cutting costs, and hiring at higher rates.

Mid-Year Pulse Survey 2026: Challenges by Cohort, Customers vs. Web Respondents Grouped bar chart comparing which areas became more challenging since January 2026 for Fora Financial customers versus web respondents. Customers: inflation 55%, cash flow 50%, staffing 41%, access to capital 27%, economic uncertainty 25%, tariffs 11%, tech/AI 8%. Web respondents: cash flow 60%, inflation 37%, access to capital 36%, economic uncertainty 27%, staffing 22%, tech/AI 15%, tariffs 11%. More Challenging Since January, by Cohort Customer Web/Prospect Cash flow 50% 60% Inflation 55% 37% Staffing 41% 22% Access to capital 27% 36% Economic uncertainty 25% 27% Tech/AI 8% 15% Tariffs 11% 11%

Which of the following have become more challenging for your business since January 2026? Select all that apply. (Customer n=84; Web/prospect n=228, derived by subtraction)

The Inflation vs. Cash Flow Flip

Customers and the web cohort face largely the same pressures, but in a different order. Customers put inflation ahead of cash flow and feel staffing costs nearly twice as acutely; the web cohort's pressure is more heavily concentrated on cash flow itself.

Mid-Year Pulse Survey 2026: Changes Made Since January by Cohort, Customers vs. Web Respondents Grouped bar chart comparing changes made since January 2026 by Fora Financial customers versus web respondents. Customers: raised prices 48%, reduced operating costs 44%, adopted tech/AI 32%, sought financing 31%, hired employees 30%, reduced headcount 23%, no changes 8%. Web respondents: sought financing 31%, adopted tech/AI 31%, raised prices 28%, reduced operating costs 24%, no changes 22%, reduced headcount 14%, hired employees 8%. Actions Taken Since January 2026 Customer Web/Prospect Raised prices 48% 28% Reduced op costs 44% 24% Adopted tech/AI 32% 31% Sought financing 31% 31% Hired employees 30% 8% Reduced headcount 23% 14% No changes 8% 22%

Since January 2026, have you made any of the following changes to how you run your business? (Customer n=84; Web/prospect n=215, derived by subtraction)

Customers Are the More Active, Adaptive Group

Demand

Customer 54% strengthening / Web 42% strengthening

Recession belief

Customer 38% say no recession / Web 25% say no

Response to uncertainty

Web 13% call it an opportunity vs. Customer 4%

How This Compares to the 2026 Annual Business Insights Report

The annual report was fielded Feb–Mar 2026 on a larger, more rigorously screened sample. This pulse uses different question wording and an unscreened panel, so treat these as directional reads on how sentiment has moved through H1, not a validated trend line.

Optimism is tracking almost exactly

76% expected revenue growth in the annual report (Feb–Mar). 75% now say they're meeting or beating those expectations at the midpoint — the early-year outlook is holding up in practice.

Cash flow isn't just the top issue, it's intensifying

Cash flow was already the #1 challenge at 55% in the annual report. Since January, 57% say it has become more challenging still — the same pressure, getting worse.

Recession caution is rising even as broad sentiment improved

52% expected favorable economic conditions in 2026, up from 48% in 2025. Yet by mid-year, 60% now say a recession before year-end is at least possible — broad optimism hasn't erased recession-specific worry.

Staffing pressure hasn't kept climbing the way cash flow has

Staffing was the second-fastest-rising challenge in the annual report (41%, +6 pts YoY). Since January, only 27% say it's grown more challenging still, well behind cash flow's 57%. The pressure that was accelerating earlier in the year isn't the pressure accelerating now.

Want to see the full 2026 Mid-Year Pulse Survey?

Download the Report

Previous Business Insights Reports

Explore Fora Financial's earlier survey findings from the 2026 and 2025 annual Business Insights Reports.

2026 Business Insights Report

The 2026 Business Insights Trends Report is the second annual survey by Fora Financial, providing a window into how business owners are navigating today's economic landscape and strategically positioning themselves for future success.

Now in its second year, the report introduces year-over-year comparisons across key topics, alongside new coverage of timely issues including AI adoption, tariff impacts, and Federal Reserve rate changes. Drawing directly from business owners, these findings offer valuable perspective on both the challenges and opportunities shaping the business landscape in 2026.

At Fora Financial, our commitment to business success begins with understanding your unique needs and challenges.

Research Methodology

This report is based on an online survey conducted by Fora Financial of over 300 business owners. The survey was fielded during February and March 2026 and participation was voluntary. Respondents received an incentive for completing the survey.

The findings reflect the perspectives of a sample of business owners who chose to participate and may not be fully representative of the broader business population. All responses were self-reported and have not been independently verified.

Respondent Overview:

We surveyed over 300 business owners

2026 Respondents Overview - Respondents by Business Industry Business Industry Other 22% Wholesale 3% Real Estate 4% Transportation 4% Manufacturing 4% Auto 5% Retail 6% Professional Services 7% Medical 10% Food Services 13% Construction 21% 2026 Respondents Overview - Respondents by Business Revenue Business Revenue Less than $249,999 5% $250,000 - $499,999 23% $500,000 - $999,999 34% $1,000,000 - $10,000,000 36% Prefer not to answer 2%

Key Findings

Business Owners Remain Resilient as Pressures Shift

Optimism is holding steady, with 76% of business owners expecting revenue growth and more than half anticipating favorable economic conditions. Underneath that optimism, pressures have shifted. Inflation is becoming less severe while tariffs and rate uncertainty are rising.

Technology & AI Are Becoming Signals of Growth

More than half of business owners increased their use of technology in the past year, and 39% are already using AI. Businesses expecting strong revenue growth are significantly more likely to be using AI, highlighting a growing link between technology investment and future performance.

Financing Activity Is Rising, But Cost is Now the Primary Barrier

Business owners are engaging with financing more regularly, with online lenders continuing to lead. However, both high interest rates and unfavorable repayment terms have become more prominent challenges, while speed and simplicity are becoming table stakes.

Expectations of Lenders Are Rising and Reshaping Relationships

Transparent pricing and flexible repayment options now rank as the most important attributes in a financing partner, while interest in long-term, strategic relationships has declined sharply. Trust is increasingly built through clear, consistent interactions rather than assumed over time.

2026 Business Owner Outlook

Business Insights 2026: Revenue Expectations Over the Next 12 Months Bar chart showing revenue expectations over the next 12 months, categorized by growth levels. 20% of respondents expect Significant Growth (greater than 20%). 56% of respondents expect Moderate Growth (between 5% and 20%). 15% of respondents expect Flat Revenue. 7% of respondents expect Slight Decline (between 5% and 20% less). 2% of respondents expect Significant Decline (greater than 20% less). Revenue Expectations Over the Next 12 Months Significant growth (>20%) 20% Moderate growth (5-20%) 56% Flat revenue 15% Slight Decline (5-20%) 7% Significant Decline (>20%) 2%

76% Expect Revenue Growth
vs 77% in 2025

Three in Four Business Owners Expect Revenue Growth, Consistent With Last Year

Despite ongoing cost and operational pressures, optimism among business owners remains steady. 76% expect revenue to grow over the next 12 months, nearly identical to 2025 (77%), signaling a stable outlook even as conditions continue to evolve.

What are your revenue expectations for your business over the next 12 months?

Business Insights 2026: Top Challenges Impacting Businesses Bar chart showing the top challenges impacting businesses in 2026. 55% of respondents identify cash flow as a top challenge, remaining the top issue Year over Year. Staffing and labor shortages were the second highest concern, up 6 points from 2025. Top Challenges Impacting Businesses Cash flow 55% Remains #1 YoY Staffing/labor costs 41% +6 pts YoY Inflation/rising costs 37% Access to capital 35% Economic uncertainty 27% -8 pts YoY Effective marketing 19% Competition 15% Tariffs/trade policy 12% New in 2026 Supply chain disruptions 7% Other 7% Lack of demand 5% Technology adoption 5%

New in 2026

Tariffs entered the list at 12%, ranking 8th among challenges.

Cash Flow Remains the Top Challenge, but Pressures are Shifting

Cash flow remains the top challenge for business owners, cited by 55% of respondents in 2026, nearly identical to last year (54%).

Beneath that consistency, the mix of pressures is shifting. Staffing and labor costs increased 6 points YoY, while economic uncertainty declined 8 points, suggesting a shift away from broader economic concerns toward more operational challenges.

What are the top 3 challenges that are currently impacting your business? Select up to 3. Note: New in 2026 indicates a new answer option added to the 2026 survey.

Business Insights 2026: Expected Economic Conditions Bar chart showing expected economic conditions for 2025 and 2026. In 2025, 48% of respondents expect favorable conditions, 30% expect neutral conditions, and 22% expect unfavorable conditions. In 2026, 52% of respondents expect favorable conditions, 27% expect neutral conditions, and 21% expect unfavorable conditions. Expected Economic Conditions 48% 30% 22% 2025 2026 52% 27% 21% Favorable Neutral Unfavorable

52% expect favorable conditions in 2026, up from 48% last year

21% expect unfavorable conditions, essentially unchanged from 2025

More than Half of Business Owners Now Expect Favorable Economic Conditions

Economic sentiment is improving modestly, with 52% of business owners expecting favorable conditions, up from 48% in 2025. While optimism is now the majority view, a meaningful share remain cautious.

Notably, economic outlook also varies by industry. Construction businesses are the most optimistic, with 63% expecting favorable conditions. Food Services owners were the most cautious, with only 34% expecting favorable conditions and 42% taking a neutral stance.

How favorable do you expect economic conditions will be for businesses over the next 12 months?

Business Insights 2026: Impact of Inflation on Operating Costs Dot chart showing the impact of inflation on operating costs in 2025 and 2026. The chart highlights the percentage of respondents who reported significant, moderate, or no changes in operating costs due to inflation. 2025 2025 0% 20% 40% 60% 80% 2026 Impact of Inflation on Operating Costs Significantly increased +18 pts -15 pts Moderately increased No impact Moderately decreased Significantly decreased 2026

Inflation Pressures are Easing, but Remain Widespread

The Impact of inflation is becoming less severe but continues to affect most business owners. The share reporting a significant increase in operating costs fell from 35% in 2025 to 20% in 2026, marking a meaningful turning point.

At the same time, 80% still report at least moderate cost increases, indicating that inflation remains a broad and persistent pressure. The story of 2026 is not that inflation has subsided, but that business owners are adapting and managing these pressures more effectively.

To what extent has inflation impacted your business's operating costs over the past 12 months?

8 in 10 business owners report higher operating conditions due to inflation.

Business Insights 2026: Steps Taken to Mitigate Inflation Bar chart showing the steps taken by businesses to mitigate the impact of inflation in 2025 and 2026. Respondents reported Raising Prices as the most common strategy (56% in 2026 compared to 54% in 2025), followed by Reducing Operating Costs (48% in 2026 compared to 54% in 2025) and Seeking Additional Funding/Loans (38% in 2026 compared to 37% in 2025). 2025 2026 Steps Taken to Mitigate Inflation Raising prices 56% 54% 48% 38% 36% 29% 29% 22% 54% 37% 41% 21% Reducing operating costs Seeking additional funding/loans Delaying major investments/expansion Adjusting inventory levels Renegotiating supplier contracts* Reducing workforce or hours* *New answer option added to 2026 survey

Business Owners are Protecting Margins from Both Sides

Business owners are responding to inflation pressures on multiple fronts. The most common responses are raising prices (56%) and reducing operating costs (48%), reflecting a coordinated effort to protect margins.

Seeking additional funding ranks third at 38% highlighting the role of capital in absorbing pressure without having to pull back entirely. Compared to a year ago, fewer businesses are delaying major investments (36% vs 41%), a sign that many are continuing to move forward despite ongoing challenges.

What steps, if any, are you taking to mitigate the impact of inflation on your business? Select all that apply.

Business Insights 2026: Impact of Tariffs and Trade Policies Bar chart showing the impact of tariffs and trade policies on businesses. The chart highlights Higher Cost for Supplies as the most common impact (66%), followed by Reduced Profit Margins (46%) and Adjusted Prices for Customers (46%). Impact of Tariffs and Trade Policies % Aspects Impacted by Tariffs Higher costs for supplies 66% Reduced profit margins 46% Adjusted prices for customers 46% Supply chain disruptions 24% Decreased customer demand 16% Switched to new suppliers or regions 11% Other 7%

Nearly 3 in 4 Business Owners Feel the Impact of Tariffs

Tariffs and trade policy are emerging as a meaningful new pressure for business owners. In 2026, 73% reported some level of impact, most commonly through higher supply costs (66%), reduced margins (41%), and pressure to increase prices (40%).

To what extent have tariffs or trade policies impacted your business operations in the past 12 months?

Which aspects of your business have been affected by tariffs or trade policies? Select all that apply.

73% of business owners say that tariffs or trade policies are impacting their business operations.

Rates & Economic Uncertainty

Business Insights 2026: Impact of Interest Rates on Financing Decisions Bar chart showing the impact of interest rates on financing decisions. The chart highlights that 20% of respondents are more likely to seek financing due to lower rates, 20% are monitoring rates before making decisions, 18% are waiting for rates to decrease before borrowing, 2% are less likely to seek financing despite lower rates, and 6% are not aware of recent rate changes. 34% report no impact on their financing decisions. Impact of Interest Rates on Financing Decisions More likely to seek financing due to lower rates Monitoring rates before making decisions Waiting for rates to decrease before borrowing Less likely to seek financing despite lower rates No impact on my financing decisions Not aware of recent rate changes 20% 20% 18% 2% 34% 6%

Rate Changes are Shaping How Business Owners Approach Financing

Interest rate changes are influencing financing decisions for many business owners, with 60% reporting some level of impact.

Responses to rate uncertainty vary, with some owners more likely to seek financing and others taking more cautious, wait-and-see approach. Only 34% report no impact, and just 6% are unaware of recent changes, suggesting that most business owners are staying informed and actively factoring rate conditions into their decision making.

How, if at all, have changes to Federal Reserve interest rates influenced your business financing decisions?

Technology & AI

Business Insights 2026: Where Businesses Are Increasing Their Use of Technology Bar chart showing where businesses are increasing their use of technology. The chart highlights Marketing & Customer Engagement as the area with the highest increase in tech usage (61%), followed by Communication & Collaboration (53%), and Managing Day-to-Day Operations (48%). Supply chain management 6% Online sales & e-commerce 29% Financial management & accounting 37% Customer service & support 42% Data analytics & reporting 43% Managing day-to-day operations 48% Communication & collaboration 53% Marketing & customer engagement 61% Where Businesses Are Increasing Their Use of Technology % Increased their Tech Usage in Past Year

Over Half of Business Owners Increased Their Use of Technology

Technology is becoming an increasingly important part of how business owners operate and adapt. In 2025, 53% reported increasing their use of technology, with the strongest growth in marketing, communication, and operations.

Adoption is even higher among larger businesses. Among those generating over $1M in revenue, 62% increased their use of technology, suggesting that larger businesses are leading technology's momentum.

In which areas of your business has the role of technology increased in the past year? Select all that apply.

53% of business owners increased their use of technology in the past year

Business Insights 2026: AI Adoption Pie graph showing the adoption of AI among businesses. The chart highlights that 39% of businesses are already using AI. AI Adoption Already using AI tools Planning to implement (12 mos) Considering, no immediate plans Not interested at this time Unsure 39% of businessesare alreadyusing AI
Business Insights 2026: AI Adoption by Revenue Expectations Businesses that expect revenue growth are much more likely to already be using AI. The chart shows that 58% of businesses expecting significant growth are already using AI, compared to 41% of those expecting moderate growth, 26% of those expecting flat revenue. 17% of businesses expect a slight decline, and 17% expect a significant decline. 17% Significant decline* 17% Slight decline* 26% Flat revenue 41% Moderate growth 58% Significant growth AI Adoption by Revenue Expectations% Already Using AI Businesses that expect revenue growth aremuch more likely to already be using AI *Low sample size, use directionally

AI Adoption is Closely Linked to Business Growth Expectations

AI adoption is gaining traction, with 39% of business owners already using AI tools and another 8% planning to implement them within the next year. Combined, nearly half of businesses are at or near active AI adoption. Notably, the relationship between AI use and business outlook is striking. Business owners expecting significant revenue growth are more than three times as likely to already be using AI compared to those expecting a decline, suggesting a strong link between AI adoption and forward-looking growth strategies.

Are you currently using or planning to use artificial intelligence (AI) tools in your business?

Business Insights 2026: Where AI is Being Deployed Bar chart showing where businesses are deploying AI. The chart highlights Marketing content creation as the most common area for AI deployment (67%), followed by Data analysis & business insights at 45% and Customer service at 44%. Other areas of AI deployment include Sales outreach & lead generation (42%), and Accounting & financial forecasting (35%). Accounting & financial forecasting 35% Sales outreach & lead generation 42% Customer service 44% Data analysis & business insights 45% Marketing content creation 67% Where AI is Being Deployed % Already Using or Planning to Use AI

Marketing Content Leads AI Adoption

Among businesses using or planning to use AI, marketing content creation leads all use cases at 67%, pacing well ahead of other applications.

Data analysis (45%), customer service (44%), and sales outreach (42%) follow, indicating that AI is being applied across both customer-facing and operational functions.

In which areas are you using or planning to use AI? Select all that apply.

The Financial Landscape

Business Insights 2026: Motivations for Borrowing Money Bar chart showing the motivations for borrowing money among businesses. The chart highlights that 45% of businesses borrow for business expansion, down 7 points year over year, 42% for refinancing existing debt, up 6 points year over year, and 41% for seasonal cash flow needs which is new in 2026. Motivations for Borrowing Money Business Expansion 45% -7 pts YoY Refinancing existing debt 42% +6 pts YoY Seasonal cash flow needs 41% New in 2026 An unexpected expense 28% Inventory purchase 24% Staffing needs 17% Emergency funds 17% Marketing efforts 15% Inflation 11% Technology upgrades (not including AI) 5% Tariffs 5% New in 2026 Other 3% Investments in AI 2% New in 2026

Borrowing is Becoming More Balanced Between Growth & Stability

Business expansion remains the top motivation for borrowing at 45%, but it declined 7 points from last year, signaling a shift away from purely growth-oriented borrowing.

At the same time, refinancing existing debt increased to 42%, and seasonal cash flow needs emerged as a new driver at 41%. Together, these trends suggest a more balanced approach, with business owners using financing not only to grow, but also to manage obligations and smooth out cash flow cycles.

Looking ahead to the next 12 months, what might motivate you to borrow money for your business? Select all that apply.
Note: New in 2026 indicates a new answer option added in the 2026 survey.

Want to see the full 2026 Business Insights Report?

Download the Report

2025 Business Insights Report

The 2025 Business Insights Trends Report by Fora Financial provides a window into how business owners are navigating today's economic landscape and strategically positioning themselves for future success.

Drawing directly from business owners, this report reveals compelling insights across critical areas including inflation response, cash flow strategies, technology adoption, and financing behaviors. These findings offer business leaders valuable perspective on both the challenges and opportunities shaping the business ecosystem in 2025.

At Fora Financial, our commitment to business success begins with understanding your unique needs and challenges.

Research Methodology

This report is based on an online survey conducted by Fora Financial among 351 SMBs and approved merchants. The survey was fielded during March and April 2025 and participation was voluntary. Respondents received an incentive for completing the survey.

The findings reflect the perspectives of a sample of Fora Financial customers who chose to participate and may not be fully representative of the broader business population. All responses were self-reported and have not been independently verified.

Key Findings

77% Expect Growth This Year

Business confidence is strong with over three quarters of owners anticipating growth.

54% Report Cash Flow Issues

Despite optimism, over half of business owners continue to face cash flow challenges.

Technology is Fueling Efficiency

Business owners are leveraging technology to streamline operations and boost productivity.

2025 Business Owner Outlook

Revenue Growth is On the Horizon

More than three out of four business owners expect their revenue to grow over the next 12 months, with 21% projecting significant growth. Only 11% expect a decline, pointing to a cautiously hopeful outlook despite ongoing economic uncertainty.

What are your revenue expectations for your business over the next 12 months?

Business Owners Show Economic Resilience

Business owners expressed remarkable optimism about broader economic conditions. Nearly 80% anticipate either neutral or favorable business conditions over the coming year. Particularly noteworthy is that just 4% expect "very unfavorable" conditions. As upcoming findings will reveal, business owners aren't simply hoping for the best, they're actively implementing strategies to navigate economic pressures and taking ownership of their path forward.

How favorable do you expect economic conditions will be for businesses over the next 12 months?

As a small franchise owner facing tight margins and unpredictable cash flow, I'd benefit greatly from more flexible, relationship-based lending options — like payment terms aligned with sales cycles.

Cash Flow Topped the List of Business Challenges

Cash flow management emerged as the most pressing concern for business owners, with 54% identifying it among their top three challenges.

Flexible financing solutions, such as working capital loans and lines of credit, can help businesses bridge the gap between expenses and revenue, alleviating cash flow pressure and creating breathing room for operations and growth opportunities.

What are the top 3 challenges that are currently impacting your business? Select up to 3.

Economic Uncertainty is Driving Borrowing Caution

In addition to adjusting their operations, business owners are also rethinking their approach to borrowing.

Over 70% agree or strongly agree that they're exercising more caution about borrowing money during times of economic uncertainty. This shift reflects a broader pattern seen throughout the survey: business owners are becoming increasingly selective and strategic, carefully weighing the potential costs, timing, and implications of borrowing decisions.

To what extent do you agree or disagree with this statement: "I'm more cautious about borrowing money for my business during times of economic uncertainty"?

The Growing Role of Technology

Tech Adoption is Powering Operational Efficiency

As inflation is driving up costs and margins are tightening, forward-thinking businesses are leaning into technology. Nearly two-thirds of respondents have increased their technology utilization over the past two years, a clear sign that owners are relying on digital tools to improve efficiency, streamline operations, and better serve customers.

While current economic conditions may be accelerating tech adoption, this digital transformation isn't just about short-term fixes, it reflects a commitment to building more resilient, efficient operations for the long haul.

How has your business's use of technology changed in the past two years?

The Business Financing Landscape

Financing as a Strategic Tool for Business Growth

Our findings showed that one-third of business owners only consider taking out financing during special or unexpected circumstances. Indicating that for many, financing is used as a strategic tool that's carefully considered in the context of growth plans and market conditions.

As shown here, business expansion is the #1 driver for borrowing money. For businesses, financing isn't only about staying afloat during challenging times, it's a launchpad for progress, helping owners to realize their vision and grow with confidence.

Looking ahead to the next 12 months, what might motivate you to borrow money for your business? Select all that apply.

Want to see the full 2025 Business Insights Report?

Download the Report