| Opportunities and Challenges Ahead for Small Businesses in 2026 |
| From tax policy to workforce development, here’s what entrepreneurs should watch for in the new year. |
As small businesses prepare for 2026, understanding the evolving economic landscape is crucial. In a recent Small Business Update, Neil Bradley, the U.S. Chamber’s Chief Policy Officer, shed light on the opportunities and challenges ahead.
Why it matters: The U.S. is home to 33.2 million small businesses, representing 99% of all businesses. Over the past two decades, they’ve contributed roughly 40% of the nation’s GDP, generating trillions in economic activity.
The big picture: Tax policy, workforce readiness, and regulatory reform are central to the conversation about supporting small business growth and innovation. Bradley emphasized the importance of policies that enable entrepreneurs to succeed.
Key updates:
- Tax relief secured: “We avoided a massive tax increase. The 20% pass-through deduction [that] most small businesses use to lower their taxes … was going to expire at the end of this year. That has now been made permanent,” Bradley said.
- Regulatory relief opportunities: “If you see a particular … regulatory burden that's impacting your business, send us a note. I think we have an open door, particularly with this administration, to try to roll back some of those regulatory requirements,” he added.
Challenges ahead:
- Workforce readiness: “Our survey data says 84% of [high school graduates] aren’t prepared to enter the workforce,” Bradley said. To help high school students get ready for future jobs, the U.S. Chamber and the College Board created a new course called AP Business with Personal Finance.
- H-1B visa fees: Bradley warned, “The $100,000 fee … would be particularly harmful for all those small businesses [that] can't afford it.” He noted that three-quarters of H-1B users are small businesses, many of whom hire just one foreign worker.
- AI regulation: “We … believe you need a national set of rules,” and not a 50-state patchwork, Bradley said, calling for clarity in regulating AI.
Bottom line: Entrepreneurs and policymakers must work together to create an environment where small businesses can thrive, innovate, and drive economic growth. |
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