Small-business owners are worried about inflation and raising prices, BofA finds
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Small-business owners remain more concerned about inflation than any other challenge, and most are increasing prices to deal with rising costs, per a new Bank of America study out Tuesday.
Why it matters: The affordability crisis isn't just a consumer matter — higher prices are weighing on businesses too and denting their outlooks for 2026.
By the numbers: The 2025 Bank of America Business Owner Report found that 70% of respondents rank inflation as a top concern, level with 2024 and ahead of issues like tariffs or political uncertainty.
- 77% say their costs have increased, by an average of 18%.
- 76% say they've raised prices as a result, by an average of 12%.
How it works: Ipsos surveyed 1,072 small- and medium-sized business owners in the U.S. in mid-September with less than $50 million in revenue and fewer than 500 employees.
Yes, but: For the most part, business owners are optimistic about the coming year, despite those cost pressures.
- About three-quarters of respondents expect their revenue to increase over the next 12 months (down just slightly from last year), and about half expect their local economies to improve.
- Only a quarter say they definitely do not plan to expand their business, and just 1% say they expect layoffs.
What they're saying: "We do see that confidence in the year ahead, and they're very focused on growth," Sharon Miller, president of business banking at Bank of America, tells Axios.
- "We're talking about companies with less than 500 people, and so, they're they're more nimble, they're able to pivot," Miller says. "I do believe that, when it comes to their own business, they do feel that they have control over what they can do to really drive the business forward, and in a period of uncertainty."
The bottom line: Small businesses are optimistic even as they are focused on managing cost pressures.
