Cautious Optimism for 2026, but Uncertainty is High Among Small Businesses According to New Thryv Data

A slight majority expects business growth in 2026, while nearly one-third are unsure

• Half of SMBs surveyed said the ability to grow their business was top 2026 concern
• Only 20% cited tariffs as a concern
• 63% said 2025 met or exceeded expectations

Small business owners see challenges ahead in 2026, leading to muted optimism according to new data from Thryv® (NASDAQ:THRY). The small business (SMB) marketing platform surveyed SMBs in mid-December 2025. When asked to select business factors they felt optimistic about, ranging from the economy and competitive edge to tech advances like AI and hiring capabilities, "none of the above" was the top choice (39 percent). Slight bright spots: almost a third of SMBs expressed economic optimism and a little more than one-quarter are optimistic they can beat their competitors.

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"Small businesses are entering 2026 with a mix of hope and hesitation. While many expect growth, nearly a third remain unsure. That uncertainty can stall progress. The businesses that embrace technology and adapt quickly will be the ones that turn cautious optimism into concrete success," said Grant Freeman, president of Thryv.

2026 outlook

Small business owners see challenges ahead in 2026, with growth and rising employment costs topping their list of concerns. Forty-nine percent of respondents cited their ability to grow their business in this economy as their top concern, followed by keeping up with employment costs (44 percent). Combating tariffs and access to financing were not notable concerns, while a third said none of these issues were of concern.

"Small businesses are entering 2026 with a mix of hope and hesitation. While many expect growth, nearly a third remain unsure. That uncertainty can stall progress. The businesses that embrace technology and adapt quickly will be the ones that turn cautious optimism into concrete success," said Grant Freeman, president of Thryv.

Despite the buzz around AI, two-thirds (67 percent) of SMBs believe it won't impact their business in 2026. They are also divided on whether they have the tools, including AI, to grow their business: yes (38 percent), no (29 percent), don't know (33 percent).

"This survey demonstrates that not all small businesses see the transformative power of AI. Those who are already leveraging AI to streamline operations and uplevel their marketing have a clear competitive edge," said Freeman.

A look back at 2025

2025 was a good year for the majority of SMBs surveyed. Fifty percent of respondents said their 2025 revenue and overall business health met expectations, and 13 percent said their expectations were exceeded. A third (37 percent) said their business results fell short.

When asked what external factors negatively impacted their business last year, they responded:

Study Methodology

Thryv conducted the survey December 15-18, 2025 with 130+ responses for a 3.8% response rate.

About Thryv

Thryv Holdings, Inc. (NASDAQ:THRY) is the provider of the leading sales and marketing platform designed to help small businesses attract new and repeat customers. Thryv software offers SMBs everything they need to manage day-to-day operations and grow efficiently. The platform's AI-supported marketing and business automations help business owners save time, compete, and win. More than 100K businesses globally use Thryv software to connect with customers and run and grow their business. For more information, visit www.thryv.com.

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Media Contact:

Julie Murphy

Thryv, Inc.

617.967.5426

julie.murphy@thryv.com

Investor Contact:

Cameron Lessard

Thryv, Inc.

cameron.lessard@thryv.com