What a Year-End Survey Reveals About Cash, Growth, and Confidence
Business owners are entering 2026 with cautious confidence. According to First American Bank’s recent year-end survey, leaders are not expecting glassy smooth sailing, but they do feel better prepared than they did a year ago. The focus has shifted from reacting to short-term pressure to making steady, practical decisions around cash, costs, and growth.
Inflation remains uneven, labor markets are tight, and operating expenses continue to test margins. At the same time, tools like automation and AI are changing how work gets done, pushing companies to rethink productivity and staffing. Against that backdrop, the survey offers a clearer picture of how business owners are setting priorities for the year ahead.
"Business owners are demonstrating remarkable adaptability,” says Alexis Pascual, Senior Vice President, Commercial Lending Group Head at First American Bank. “Those who actively manage cash flow, invest in productivity-enhancing technology, and diversify revenue streams are positioning themselves to succeed in a changing economic environment."
A steadier, but still uncertain, outlook
Goldman Sachs Research forecasts global growth of 2.8% in 2026, with the U.S. leading developed economies as inflation eases and financial conditions improve. The Atlanta Fed’s fourth quarter 2025 estimates of 5.4% GDP growth suggest 2026 may be even stronger than that. China’s manufacturing sector remains robust, while Europe benefits from fiscal stimulus and resilient consumer spending. For business owners, this means steady demand – where disciplined planning, efficiency, and selective investment matter most.
Survey results show that most business owners are approaching 2026 cautiously: 60% described their outlook as neutral, 30% as moderately optimistic, and 10% as very optimistic. Compared to last year, 40% reported a significantly improved outlook, and another 20% said it had slightly improved. These results suggest that, despite ongoing uncertainty, business leaders feel prepared to adapt and make strategic decisions.
Liquidity and access to capital remain top concerns
While confidence has improved, cash management remains a pressure point. Nearly half of surveyed businesses said they may need additional financing depending on how market conditions develop, and 30% reported having less than three months of cash reserves on hand. The 2025 U.S. Chamber of Commerce Small Business Index reinforces this concern, citing rising costs—particularly inflation—as a key challenge for small businesses.
With interest rates expected to decline in 2026, proactive liquidity management and early financing planning are essential. This is where planning makes a real difference. Businesses that understand their working capital needs and line up options in advance have more flexibility when conditions change.
Growth, but with guardrails
Many business owners are taking a dual approach: safeguarding operations through careful financial management while pursuing growth opportunities such as new product launches or market expansion. This strategy of balancing caution with ambition reflects a hallmark of resilient companies.
Operational pressures are mounting across industries. Survey participants are responding by diversifying revenue streams, adjusting pricing, streamlining operations, and investing in automation and workforce development. These measures reduce costs, boost productivity, and strengthen competitiveness, helping businesses withstand economic turbulence.
Takeaways for Business Leaders
Survey insights point to several strategies for navigating the year ahead:
- Protect liquidity through disciplined cash-flow management
- Invest selectively in technology, especially productivity-enhancing tools
- Diversify revenue streams to reduce dependence on a single market
- Plan for steady, sustainable growth rather than aiming for rapid expansion in a fragmented global economy
The survey demonstrates that challenges are real, but so are opportunities. As Alexis Pascual notes, “Those who plan ahead and invest wisely today are setting the stage for the success of tomorrow.”
Take the next step: explore First American Bank’s resources, tools, and insights to optimize cash flow, improve operational efficiency, and plan strategically for the year ahead. Visit our business solutions page today and start positioning your company for sustainable growth.
