U.S. business owners are entering 2026 with renewed optimism and a clear focus on growth, according to a new survey of small and middle market companies released by Citizens.

The Citizens Q1 2026 Business Pulse survey shows that 68% of middle market businesses (revenue above $5 million annually) report confidence in the economy, signaling a promising outlook for investment in the first quarter of the year.

Eighty-six percent of those companies expect their revenue to increase in the next three months. Among smaller businesses (revenue $500,000–$4.9 million), 64% anticipate revenue growth in the first quarter.

“Small business owners are navigating structural headwinds and finding solid footing in the process,” said Mark Valentino, Head of Business Banking at Citizens. “Even in the face of challenging conditions, our clients continue to demonstrate remarkable creativity, resilience and determination. The surge in optimism suggests the entrepreneurial engine is not just surviving, it’s accelerating.”

Small businesses are gearing up to put their increased revenue to work with higher spending. Sixty percent of businesses surveyed are planning to deploy more capital this quarter to enhance efficiency and further increase revenue. Of those deploying new revenue, 64% intend to use or apply for a credit card in Q1, and 47% plan to request a credit limit increase.

Small businesses cite talent as a major focus with 41% planning to increase headcount this quarter. In the first quarter of 2026, fewer than 3% of small businesses plan to decrease full-time staff.

This steady confidence and bullish approach to spending positions small businesses for robust growth in 2026.

“Small and medium-sized businesses have adjusted to a new normal,” Valentino added. “Talent is a concern and so is inflation pressure, but we believe that strong partnerships with purpose can help owners take advantages of opportunities.”

The Citizens Q1 2026 Business Pulse was conducted in November 2025 and findings are drawn from an online survey of 500 principals (owner, founder, partner, CEO, president, etc.) of U.S.-based businesses with up to 1,000 employees.