As the sweep of international tariffs continues to go into effect, numerous small business owners are growing concerned over how it will affect their shops and supplies. However, they remain hopeful about their economic outlook, according to a new study. 

Over 34% of small business owners stated that rising costs of supplies have impacted their business within the last year, and 31% say that ongoing inflation worries have impacted them, according to a Bluevine survey of 1,067 company owners fielded in November. 

The study found that only 30% of small business owners finished last year with profits that exceeded their expectations, which is a significant decrease from 57%, which was reported at the end of 2024. 

For owners to successfully keep their shops afloat, about 28% say they had to raise prices last year to combat inflationary pressure. Despite supply chain woes and rising costs, about 78% of owners remain optimistic about their profitability forecasts for this year. 

Economic confidence from owners regarding settling their financial concerns is rooted more in expectations of macroeconomic improvement than in recent performance.  

The survey found that 49% of business owners say a decrease in inflation or the cost of goods would improve their outlook. Meanwhile, 46% say an increase in customer demand would serve as a key factor for future success. 

“Small businesses face challenges beyond their control from inflation to shifting consumer behavior, but our surveys have shown they continue to pivot and adapt amid uncertainty,” Eyal Lifshitz, CEO of Bluevine, said. “Their optimism about 2026, despite these headwinds, underscores the resilience of small business, and we’re committed to providing the tools and resources they need to succeed.” 

While owners may have faced multiple financial difficulties last year, most are looking ahead and shifting their focus to internal improvements rather than expansion. About 42% plan to increase efficiency and productivity for their businesses, 37% intend to launch new products or services, and 32% are prioritizing stronger financial operations for this year. 

The survey included founders, partners, CEOs, presidents, or managing directors, with annual revenue between $50,000 and $5 million, in a partnership with Centiment Audience. 

Following a report from the National Federation of Independent Business, small business sentiment fell to a six-month low in October, with the NFIB optimism index slipping 0.6 points to 98.2.