Model D
Feb. 20, 2026
Business optimism is returning for small and midsize business leaders at the start of 2026, fueling confidence and growth plans.
The 2026 Business Leaders Outlook survey, released in January by JPMorganChase reveals a turnaround from last June, when economic headwinds and uncertainty about shifting policies and tariffs caused some leaders to put their business plans on hold.
Midsize companies, who often find themselves more exposed to geopolitical shifts and policy changes, experienced a significant dip in business and economic confidence in June of 2025. As they have become more comfortable with the complexities of today’s environment, we are seeing optimism rebounding in the middle market nationwide – an encouraging sign for growth, hiring, and innovation. Small businesses, meanwhile, maintained steady optimism throughout 2025, but they aren’t shielded from domestic concerns. Many cited inflation and wage pressures as the top challenges for 2026 and are taking steps to ensure their businesses are prepared for what’s ahead.
“Michigan business leaders continue to show determination and adaptability, even as they navigate a complex and evolving economic landscape. Their willingness to embrace new technologies and pursue growth opportunities speaks to the strength and ingenuity of our local business community, said Terrah Opferman, Region Manager for Michigan and Ohio, J.P. Morgan Commercial Banking. “I’m confident that this momentum will drive Michigan’s economy forward in 2026 and beyond.”
Overall, both small and midsize business leaders are feeling more confident to pursue growth opportunities, embrace emerging technologies and, in some cases, forge new strategic partnerships. That bodes well for entrepreneurs in Michigan. Here are a few other key findings from the Business Leaders Outlook about trends expected to drive activity in Michigan this year:
- Local small and middle market businesses remain optimistic. Seventy four percent of Detroit small businesses are optimistic about their business next year, while 60% are optimistic about the local economy. Among the most positive Detroit small businesses surveyed, 78% feel more optimistic than at any time in the last five years. Michigan midsized businesses leaders are more optimistic (46%) about the national economy than the rest of the country (39%) at large.
- Labor is a top three concern in the Midwest. Going into 2026, Labor is a top three concern among midsize business leaders in the Midwest (higher than revenue and sales growth, which was the third nationally). In Michigan, labor is the #2 challenge facing middle market business leaders, while tariffs are ranked #3 among middle market businesses in the state.
- And tariffs are impacting businesses costs. Seventy percent of Midwest midsize business leaders said tariffs have had either a moderate or significantly negative impact on the cost of doing business. Seventeen percent of Detroit small businesses cite tariffs and imported goods as a major cost driver.
- Despite challenges, leaders are bullish on their own enterprises. Though the overall outlook is mixed, 74% of Detroit small business owners are optimistic about their business for 2026.
- Detroit small businesses (67%) increased use most in vertical-specific AI tools, in addition to virtual assistants and scheduling tools (64%), and e-commerce platforms (63%).
- Big plans are on the horizon. Forty-one percent of midsize business leaders in Michigan say they are considering M&A activity in 2026. Additionally, over half (52%) of Michigan midsize business leaders plan to increase employee headcount in 2026, slightly the national average (48%).
The Bottom Line
Rebounding optimism among U.S. business leaders at the start of the year is setting the stage for an active 2026. With business leaders looking to implement ambitious growth plans that position themselves for the future, momentum in Michigan could be beneficial future goals for leaders looking to launch, grow or scale their business this year.