Running the business
A buyer does not price your business against a spreadsheet. They price it against the other businesses they could buy instead, and against what it is like to run one right now.
A buyer does not price your business against a spreadsheet. They price it against the other businesses they could buy instead, and against what it is like to run one right now. This page is the operating backdrop: what owners say is hard, what is happening to costs, and what the numbers say is happening to sales.
There is a split running through everything below that is worth naming before you read it. Sentiment sits close to its long-run average, while uncertainty sits far above it and reported sales and profits are negative on net. Owners are not gloomy so much as unable to see far ahead, and those are different problems with different effects on a sale process. Uncertainty lengthens diligence. Falling profit changes the price.
Everything below is dated and sourced. Open any figure to see the sentence it came from and the page it was read on.
36 figures · 7 sources · last reviewed 2026-09-10
The mood, and what it is measured against
Are small business owners feeling optimistic?98.7
Small Business Optimism Index for August 2026 was 98.7, down 1.1 points from July
The Small Business Optimism Index for August was 98.7, down 1.1 points from July's highest level since August 2025.
Remains above 52-year average of 98.0 but declined from July
Was business sentiment improving earlier in 2026?99.8
July 2026 Small Business Optimism Index was 99.8, highest level since August 2025
The NFIB Small Business Optimism Index rose 2.4 points in July to 99.8, rising above its 52-year average of 98.0. This marks the highest level since August 2025.
August showed decline of 1.1 points from this peak
What's the historical average for small business optimism?98.0
NFIB 52-year average for Small Business Optimism Index is 98.0
The Index remains above its 52-year average of 98.0.
Baseline for comparison purposes
Are small business owners uncertain about the future?89
Uncertainty Index for August 2026 was 89, down 2 points from July but well above historical average
The Uncertainty Index fell 2 points from July to 89, but it remained well above its historical average of 68.
Historical average is 68, indicating elevated uncertainty
What owners name as the biggest problem
What's the biggest problem facing small business owners?23%
23% of small business owners cited labor quality or availability as their single most important problem in August
In August, the top reported issue was labor quality or availability, with 23% of small business owners reporting it as their single most important problem.
Down 4 points from July (27%) but 11 points above historical average
Is inflation still the top concern?16%
16% of small business owners cited inflation as their single most important problem in August
Reports of inflation as the single most important problem picked up in August. Sixteen percent of business owners cited inflation as their single most important business problem, up 2 points from July and ranking the second top issue, tied with taxes.
Up 2 points from July; elevated vs historical average of 7%
Besides labor and inflation, what else worries small business owners?16%
16% of small business owners cited taxes as their single most important problem in August
Sixteen percent of small business owners reported taxes as their single most important problem, unchanged from July and the second top issue tied with inflation.
Tied with inflation as second top issue
Sales and profit
Are owners expecting sales to grow?6%
Net 6% of small business owners expect higher real sales volumes over next quarter in August
The net percent of owners expecting higher real sales volumes over the next quarter fell 1 point from July to a net 6% (seasonally adjusted).
Down 1 point from July
Did sales actually grow recently?-9%
Net -9% of small business owners reported higher nominal sales in past three months
A seasonally adjusted net -9% of owners reported higher nominal sales in the past three months, down 5 points from July and the lowest reading since November 2025.
Lowest reading since November 2025; more owners reported lower sales than gains
Are business profits staying flat or declining?-19%
Net -19% of small business owners reported positive profit trends in August
The frequency of reports of positive profit trends decreased 3 points from July to a net -19% (seasonally adjusted), sitting just 1 point below the historical average.
Down 3 points from July
Labor and wages
Are owners having trouble finding employees?35%
35% of small business owners reported job openings they could not fill in August
In August, 35% (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down 1 point from July and 11 points above the historical average.
11 points above historical average; 31% for skilled workers, 13% for unskilled
Are businesses planning to hire?17%
Net 17% of small business owners plan to create new jobs over next three months in August
Looking ahead, a seasonally adjusted net 17% of owners plan to create new jobs over the next three months, down 3 points from July's highest level since October 2022.
Down from July's 20%; still above historical average
Did owners raise worker pay recently?31%
Net 31% of small business owners reported raising compensation in August
A seasonally adjusted net 31% reported raising compensation, unchanged from July.
Unchanged from July; above historical average
Are owners planning to raise wages soon?18%
Net 18% of small business owners plan to raise compensation in the next three months
A net 18% (seasonally adjusted) plan to raise compensation in the next three months, down 1 point from July.
Down 1 point from July; above historical average
When is the wage data from the Bureau of Labor Statistics current?May 2025
Data from the Occupational Employment and Wage Statistics survey is from May 2025.
Table 1. National employment and wage data from the Occupational Employment and Wage Statistics survey by occupation, May 2025
Prices and costs
Did owners raise prices recently?31%
Net 31% of small business owners reported raising average selling prices in August
In August, a seasonally adjusted net 31% of owners reported raising average selling prices, unchanged from July but well above the historical average of net 14%.
Unchanged from July; well above historical average
Are owners planning to raise prices?28%
Net 28% of small business owners plan to increase prices in the next three months
Looking forward to the next three months, a net 28% (seasonally adjusted) plan to increase prices, unchanged from July.
Unchanged from July; above historical average of 22%
Are business owners still seeing prices go up?63%
Business owners report inflation is not easing
63% of business owners say inflation is not easing
How many owners are struggling with fuel and energy costs?48%
Business owners report disruptions from fuel and energy costs
48% report business disruptions related to higher fuel and energy costs following the U.S.-Iran conflict
Tariffs and imported inputs
Are most businesses sourcing materials or products from overseas?48%
Share of firms sourcing inputs from outside the United States
Forty-eight percent of firms reported that they sourced at least some of their inputs from outside the United States in 2024, while 14% said they did so for more than half of their inputs.
14% sourced more than half of inputs from outside the US
Are tariffs actually costing businesses money?more than 40%
Share of firms reporting tariff-related cost challenges
Additionally, more than four in 10 firms reported that increased costs associated with tariffs were a financial challenge.
More than 40% is approximate language in source
When costs go up from tariffs, do owners pass them to customers?76%
Share of firms with foreign inputs that passed cost increases to customers
Seventy-six percent of such firms reported passing at least some of these higher costs on to customers, while 60% reported absorbing at least some of these cost increases.
Among firms with foreign inputs; multiple responses allowed
When costs go up from tariffs, do owners absorb them?60%
Share of firms with foreign inputs that absorbed cost increases
Seventy-six percent of such firms reported passing at least some of these higher costs on to customers, while 60% reported absorbing at least some of these cost increases.
Among firms with foreign inputs; multiple responses allowed
Are retail businesses getting hit harder by tariffs?69%
Share of retail firms reporting tariff-related cost challenges
Tariff-related cost challenges were most prevalent in the retail (69%) and manufacturing (62%) industries.
Highest among industries; manufacturing at 62%
Are manufacturing businesses getting hit harder by tariffs?62%
Share of manufacturing firms reporting tariff-related cost challenges
Tariff-related cost challenges were most prevalent in the retail (69%) and manufacturing (62%) industries.
Second highest among industries; retail at 69%
What owners are putting back in
Are owners planning to invest in equipment or facilities?24%
24% of small business owners plan to make capital outlays in next six months in August
Twenty-four percent (seasonally adjusted) of small business owners plan to make capital outlays in the next six months, down 1 point from July's highest reading since December 2024.
Down 1 point from July peak
Did owners recently invest in the business?53%
53% of small business owners made capital outlays in the last six months
Fifty-three percent of small business owners reported making capital outlays in the last six months, down 1 point from July.
Down 1 point from July
Family businesses
Are family businesses focused on growing their core business?86%
US family businesses prioritize core business expansion as a long-term growth investment.
US family businesses prioritize core business expansion (86%) and diversification (57%) as investment areas for long-term growth
Are family businesses planning to diversify?57%
US family businesses prioritize diversification as a long-term growth investment.
US family businesses prioritize core business expansion (86%) and diversification (57%) as investment areas for long-term growth
Are family businesses investing in their people?64%
US family businesses prioritize strengthening internal talent.
Strengthening internal talent (64%)
Is talent and leadership development a concern in family firms?47%
Talent and leadership development affects US family businesses and respondents.
Talent and leadership development affect 47% of US and global respondents
Are family business sales growing?81% in 2023, 52% in 2025
US family businesses reported sales growth in 2023 versus 2025.
In 2023, 81% of US family businesses reported sales growth. By 2025, that figure fell to 52%
Represents moderation in top-line momentum
How many family businesses are actually growing faster than inflation?17%
US family businesses achieved double-digit sales growth.
A smaller proportion—17%—achieved double-digit growth compared to 25% globally
Lower than global average of 25%
What the deal market expects next
Do dealmakers think market activity will stay busy through the end of the year?87%
Dealmakers expect lower middle market activity to hold steady or increase in 2H 2026
A combined 87% expect LMM M&A activity to hold steady or increase in 2H, including 38% who anticipate an uptick.
Based on survey of 79 lower middle market dealmakers; only 3% expect activity to decline
Do brokers expect more deals in the second half of 2026?65%
Brokers expect deal volume increase in second half 2026
65% of brokers expect deal volume to increase compared to the same period in 2025
Are dealmakers optimistic about the upper middle market?approximately 68%
Seller market sentiment for the $5M-$50M band reached roughly 68% in Q3 2025, the top of the five size bands
Chart-vision read from a line chart with no printed value at that point, so it is read against gridlines and is approximate. Confidence medium for that reason. Smaller bands sit far lower, roughly 29% for under $500K.
Related figures, kept on their own pages
- What happens when price negotiations restart after an LOI? How deals close, and why they fall apart14.7%
- What happens to a deal if the business starts underperforming before closing? How deals close, and why they fall apart8.0%
- How many businesses sold in the lower middle market this quarter? How deals close, and why they fall apart3,523
- Are valuation multiples going to stay flat in 2026? What businesses sell for61.9%
- Why are so many deals falling apart after the LOI these days? How deals close, and why they fall apart25.3%
What these numbers cannot tell you
Almost everything on this page is a survey, which means it records what owners say, not what they did. Net readings compound that: a net figure is the share reporting an increase minus the share reporting a decrease, so a small negative number can sit on top of a large number of businesses doing well and an equally large number doing badly. It describes a balance, not a typical business.
The tariff figures are the clearest case of why that matters. 76 percent of firms with foreign inputs say they passed costs on and 60 percent say they absorbed them, which only looks contradictory until you notice that most firms did both, on different products and at different times. Multiple answers were allowed.
These are national numbers, and none of them is your market. An index built from thousands of firms across every state and sector cannot tell you what is happening to labor in one trade in one city, which is where the answer actually lives.
What this backdrop does to price is on what businesses sell for, and what it does to a deal already in progress is on how deals close.
Sources on this page
- Axial
- BizBuySell Insight Report
- Federal Reserve Small Business Credit Survey
- IBBA / M&A Source Market Pulse
- NFIB
- PwC US Family Business Survey 2025
- U.S. Bureau of Labor Statistics
Reported as published by the sources named. Not investment, legal, tax or valuation advice.