87% of SMBs Say Economic Pressure Has Changed How They Operate

The G&A Partners 2026 SMB Readiness Survey examines how small and mid-sized businesses are responding to today’s economic, workforce, compliance, and growth challenges. The research explores how business leaders are balancing confidence in the future with current operational realities. The findings are compiled in the 2026 SMB Readiness Report, which highlights key trends, risks, and opportunities shaping the small and mid-sized business landscape.

The survey, conducted in May 2026, included 350 U.S. small and mid-sized business decision-makers representing organizations with 5-300 employees. Respondents came from a variety of industries, including skilled trades, manufacturing, healthcare, professional services, nonprofit, retail, technology, and hospitality. Participants held leadership roles such as owner, founder, CEO, president, partner, managing director, and other executive positions.

The G&A Partners 2026 SMB Readiness Survey reveals a paradox: SMB leaders are confident about the future but increasingly cautious in the present. Business leaders believe they can overcome challenges and achieve growth, yet many are delaying hiring, reevaluating investments, and taking steps to reduce risk. These seemingly contradictory realities help define today’s tradeoff economy, where leaders must balance optimism about what’s ahead with the operational pressures they face right now.

Many SMBs are taking steps to protect stability and manage risk. Survey findings show organizations are delaying hiring, controlling costs, increasing focus on operational efficiency, and reassessing growth plans. At the same time, business leaders report rising compliance costs and are prioritizing compliance readiness alongside other strategic initiatives.

Economic uncertainty is a major factor. The G&A Partners 2026 SMB Readiness Survey shows that many business leaders have adjusted hiring plans in response to ongoing economic pressure. SMBs are weighing workforce needs against concerns about costs, market conditions, and overall business stability, leading many organizations to take a more cautious approach to talent acquisition.

A tradeoff economy means business leaders must make difficult choices between competing priorities. Rather than pursuing growth at all costs, many SMBs are balancing expansion plans with concerns about economic conditions, labor availability, compliance requirements, and operational risk. The G&A Partners 2026 SMB Readiness Survey found that today’s business leaders are often navigating two realities at once: confidence in the future and caution in the decisions they make today.

Many small and mid-sized businesses are taking a more strategic approach to growth. Rather than aggressively pursuing expansion, business leaders are looking for ways to improve efficiency, control expenses, and reduce risk while continuing to invest in their people and long-term goals. This balancing act is a defining characteristic of today’s “tradeoff economy,” where organizations must carefully weigh growth opportunities against economic uncertainty, workforce challenges, and rising compliance demands.

One strategy many SMBs are exploring is partnering with a professional employer organization (PEO). By outsourcing time-consuming HR responsibilities such as payroll, benefits admin, HR management, and compliance support, businesses can streamline operations, gain access to comprehensive HR resources, and free up internal teams to focus on growth initiatives.