3 driving forces behind small business growth in 2026

Small businesses are entering a defining era where speed, authenticity, and networks determine success. LinkedIn’s December 2025 report, “How Small Businesses Can Win in 2026,” analyzed data from over 160 million professionals across 18 million small businesses to identify three forces reshaping growth: AI adoption, brand credibility, and networks.

Technology adoption is no longer optional. Seventy-nine percent of U.S. small businesses use AI in some form, and 57% of employees report that AI improves daily work life. Companies with 11–50 employees saw a 44% year over year increase in AI literacy, while firms with 51–200 employees reported a 62% jump. More than half of employees learn AI through employer-provided training. Businesses are using AI to automate customer service, generate content, streamline hiring, and make better data-driven decisions. Even modest AI investments can yield outsized results, leveling the playing field with larger competitors.

AI is also driving entrepreneurship. Half of U.S. small business employees say AI has made them consider career paths like entrepreneurship. The number of LinkedIn members adding “founder” to their profiles jumped 69% year over year since July 2024, while 40% of U.S. professionals say they want to work for themselves soon. Small businesses are responding by fostering both AI skills and human skills, such as communication, creative thinking, collaboration, and adaptability.

Building credibility is now essential for attracting customers and sustaining growth. Seventy-one percent of leaders say showing up authentically online is critical. Audiences increasingly “gut-check” information with trusted human voices, whether employees, partners, or influencers. Short-form video has become a leading tool for engaging audiences and building trust. Content creation is no longer optional; 61% of business owners have taken on active content creation, and 74% see brand building as central to achieving three- to five-year goals.

Networks are the final pillar of growth. Seventy-three percent of small business leaders view networking as key to long-term success. Networks help businesses find customers, make hiring decisions, and access mentorship. Professionals are expanding their networks faster than those at large companies, and 63% of respondents cite relationships as critical for decision-making. Trusted relationships allow small businesses to convert information and AI capabilities into tangible growth.

Together, AI adoption, credibility, and networks form a blueprint for small business success in 2026. By strategically investing in technology, cultivating authentic brands, and leveraging relationships, small businesses can turn uncertainty into opportunity. Generative AI alone could unlock trillions in global productivity, with SMBs positioned to capture over 30% of that value. Businesses that successfully harness these three powerful forces will pave the way for a profitable, thriving future.