The U.S. Chamber of Commerce is urging policymakers and entrepreneurs to embrace a fearless, pro-growth mindset as small businesses enter 2026 with momentum but face pivotal policy choices that could shape long-term economic outcomes. Joining us on the latest episode of U.S. Chamber of Commerce Small Business Update to further explain is Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce.
That message followed the Chamber’s State of American Business Address, where leadership framed the year ahead as a clear choice between policies that encourage growth and innovation and those that risk slowing the economy through excessive regulation. According to Sullivan, the direction lawmakers choose will have lasting implications for wages, business formation, and community prosperity.
Sullivan notes that the U.S. Chamber of Commerce President and CEO, Suzanne Clark, during the address, emphasized that the call for fearlessness is rooted in real-world small business experience. He notes that the organization highlighted the risks entrepreneurs take every day, not just for themselves but also for their employees and communities. That perspective shaped a broader argument that free enterprise, when supported rather than constrained, remains the most effective path to widespread economic advancement.
Differences in growth
Sullivan emphasized the gravity of the situation by comparing potential future policy with past outcomes. He warned that significant government involvement in earlier decades serves as a cautionary example of how controls, even if well-intentioned, can negatively affect markets and restrict opportunities. By comparison, sustained economic growth of 3% or more was described as a catalyst for dramatically higher living standards over time. Even small differences in growth rates, Sullivan noted, can translate into significant disparities in income and quality of life over a generation.
AI was also highlighted as a major driver of the next productivity surge, particularly for small businesses. Sullivan views AI as an extension of earlier technological shifts that allowed small operators to compete with larger firms. From solo entrepreneurs to midsize companies, AI tools are already helping businesses scale operations, improve efficiency, and expand their reach in ways that were previously unattainable.
Fragmented AI regulation
However, Chamber leaders warned that regulatory missteps could blunt that progress. A patchwork of state-level AI regulations, combined with heightened litigation exposure, was identified as a significant risk to innovation. Instead, the Chamber is advocating for a single national framework that protects consumer privacy and data while allowing businesses to adopt new technologies without fear of costly legal challenges.
“When we’re forced on those pro-growth initiatives, we really are looking at a catalyst for a fearless economy.”
Recent policy developments have added to the Chamber’s optimism. Expanded expensing limits and permanent tax deductions are expected to free up capital that small businesses can reinvest in hiring, equipment, and local communities. Along with improving access to credit, these measures have created what the Chamber describes as a favorable environment for business growth.
Despite ongoing concerns around inflation and affordability, franchise ownership is growing, and many small business owners are actively expanding their operations rather than pulling back. Sullivan also noted that optimism tends to be highest when owners focus on controllable factors such as customer acquisition, workforce development, and operational efficiency.
As the country approaches its 250th anniversary, Sullivan stresses that the moment calls for renewed confidence in entrepreneurship and economic freedom. For small business owners, opportunities remain abundant, but the policy decisions made today will determine whether the economy accelerates or settles into slower growth.
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