5 Small business opportunities entrepreneurs should target in 2026

Entrepreneurship is taking on new heights. In 2024, the U.S. Chamber of Commerce reported 5.2 million new business applications, a 49% increase over 2019. The report found that AI technologies have reduced the hurdles to starting a business, and by mid-2025, 58% of U.S. small businesses reported using AI, more than double the share in 2023.

But while AI drives convenience solutions, the real opportunities lie in tackling structural challenges. Here are five areas entrepreneurs should focus on heading into 2026:

1. Lead workforce reskilling efforts

Tech layoffs hit record levels in 2025, leaving many workers unemployed in design, software, marketing, and administration. At the same time, skilled trades, from electricians to HVAC technicians, face a shortage projected to reach 2 million unfilled roles by 2033.

However, startups can fill this gap by offering:

• Gender-inclusive pre-apprenticeship programs
• VR-based technical training
• Job placement marketplaces for mid-career transitions
• Wraparound support services like transportation and childcare

Helping workers pivot into AI-proof, resilient careers addresses both unemployment and critical labor shortages.

2. Restore trust in a digital world

Deepfakes, AI-generated content, and cloned identities are making it harder to establish trust online. Therefore, startups that focus on “proof of realness” can become indispensable by:

• Implementing in-person authentication
• Enabling direct in-app photo and video capture
• Tracking content provenance with blockchain
• Offering human-verified digital platforms

Platforms that restore confidence in online interactions can carve out a unique niche in the evolving marketplace.

3. Build supply chain resilience

Global disruptions, tariffs, and reshoring initiatives have revealed fragile supply chains. Bottlenecks, especially in component manufacturing, persist; therefore, entrepreneurs can create value through:

• Hyper-local manufacturing and micro-factories
• Community makerspaces for prototyping and small-batch production
• Circular business models, including rentals and upcycling
• AI-powered tools to forecast shortages and mitigate delays

Companies that help businesses localize or de-risk production will gain a competitive edge.

4. Foster human-AI collaboration

AI adoption continues to surge, with 78% of organizations using AI in 2024. The next challenge is helping humans collaborate effectively with AI. Startups can thrive by developing:

• Adaptive learning platforms that build human skills
• Tools that provide AI guardrails and guidance
• Creative systems that amplify human originality
• AI-assisted governance and back-office solutions for small businesses

Focusing on human-AI partnerships can preserve creativity, judgment, and trust while boosting efficiency.

5. Navigate policy and market shifts

Entrepreneurs also need to stay aware of evolving tax, trade, and regulatory landscapes:

• Recent tax reforms preserved the 20% pass-through deduction and restored full R&D and equipment deductions
• Elevated tariffs and changing H-1B visa rules continue to affect talent access
• Inconsistent AI regulations across states create compliance challenges

Startups that can help businesses navigate these shifts or operate within predictable frameworks will stand out in a complex environment.

Looking ahead

The most successful small businesses in 2026 will focus on reskilling the workforce, verifying digital authenticity, strengthening local supply chains, and designing human-centered AI. Entrepreneurs who tackle these challenges can generate lasting value, meet growing demand, and shape a resilient, trustworthy business landscape.