Night time Photo of Drifters Restaurant, Fort Pierre, South Dakota
(Article published by Main Street America October 20, 2026 by Authors Michael Powe, Ph.D.Senior Director of Research & Emi Morita, Manager of Research)
Small businesses are at the heart of local economies. As part of our mission to support small businesses and local entrepreneurs, Main Street America leads one of the nation’s largest small business surveys. Through our network of state, county, and local Main Street organizations, we have received 22,724 small business survey responses since we began these surveys in 2020. In response to our latest Fall survey, open from September 3 to September 28, we heard from 1,568 small business owners representing all 50 states, plus the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Their responses offer critical insights into small businesses this fall.
Our survey respondents demonstrate the depth and range of Main Street businesses in our network. We heard from retailers selling vintage and physical media in California, new and used books and craft beer by the bottle in North Carolina, and musical instruments and supplies in Minnesota. Our respondents include a Hawaiian food restaurant in Illinois, a crepe and coffee shop in Tennessee, an Ethiopian restaurant in Louisiana, and an Indian food restaurant in Missouri. Main Street business respondents include many businesses that aren’t retailers or restaurants; for example, a DJ in Wyoming, a “haunted attraction” in Texas, and a community bank in Kentucky provided responses.
Confidence Continues to Rebound
In each survey, we ask business owners to rate their confidence in their business success over the next three months on a scale of 1 – 10. Our Fall 2026 survey indicates business confidence continues to rebound from its historic low in Spring 2025. It rises to an average of 7.5 in our most recent survey, bringing it in line with the near-peak values reported in 2022 – 2024.
Despite overall rising values, confidence levels remain uneven across different sectors and business types. Professional services business owners are more confident than business owners in arts and entertainment or food and beverage. Businesses with more than five full-time employees are half a point more confident than businesses with fewer than three full-time staff.
Main Street leaders can be proud that the average confidence of business owners receiving local Main Street support is a half-point higher than for business owners who do not receive that support, indicating that local support plays an important role in building business confidence.
Revenue and Profit are Steadily Growing
Climbing confidence is supported by upward trends in revenue and profit. 34% of responding business owners reported increasing revenue in Fall 2026, compared with 26% in Spring 2025. Likewise, 26% reported increasing net profit in Fall 2026, compared with 16% in Spring 2025.
The data show some evidence that revenues are improving faster than profits, suggesting that increasing business expenses are eating away at profit margins. Many respondents seem to be doing more business but bringing home less of their earnings. Cost pressures are a likely culprit: maintaining positive cash flow and managing inventory at sustainable costs were two of the top three challenges cited by respondents on another question.
Rising Tide Isn’t Lifting All Boats
Across our confidence, revenue, and profit data, we see that different businesses are experiencing significantly different economic conditions. We asked Main Street business owners whether their recent half-year profits reflected short-term fluctuations or longer-term trends. Of the 39% of businesses that reported profits declining over the last six months, more than half have seen a decline lasting a year or longer. For one-fifth, it has stretched beyond two years.
These are not businesses caught in a rough quarter. They are businesses navigating a sustained period of financial pressure, even as many of them have kept their doors open and lights on.
Main Street Businesses are Rooted in Community
Like a famous bar in Boston, Main Street businesses are places where workers and customers can often greet each other by name. We asked Main Street business owners about the different types of customers they serve, and whether they serve each group regularly, sometimes, or rarely / never. Nearly 7‑in‑8 Main Street business owners said they regularly serve customers that the owners and staff know by name, and nearly 90% of Main Street businesses regularly serve local customers. About 45% regularly serve tourists, and just under 30% regularly serve other businesses and online customers. About one-eighth of all respondents said they regularly served four customer types: locals, customers they know by name, online customers, and business-to-business customers.
Hobbies vs Household Pillars
At a recent Washington Main Street PLACES Conference session on simplifying economic development, Bainbridge Island Downtown Association Executive Director John Carson quipped, “Some hobbies are businesses; some businesses are hobbies.” Later in the session, John went on to talk about the importance of having differentiated strategies for supporting businesses where revenue isn’t essential to keeping an owner’s pantry stocked at home compared with businesses where virtually all household income stems from their revenues. Many great Main Streets have healthy numbers of both types of businesses.
Roughly 30% of Fall 2026 survey respondents said virtually all of their household income (90% or more) came from business revenue. About 1⁄3 indicated that a substantial portion of their household income (25 – 90%) came from business revenue. Nearly 40% said only a small portion of household income (less than 25%) came from their business.
Businesses where revenues aren’t critically needed for the owner’s regular household living expenses may take more risks with product offerings, offer niche products, and attract out-of-town visitors with whimsical, unusual storefront displays. Main Streets need a mix of businesses that fulfill essential community needs and businesses that appeal to special occasions, occasional customers, and other odds and ends, even if they largely represent a hobby for the owner.
Building Stronger Economies Together
The Fall 2026 findings help us understand how small businesses are adapting to changing conditions and opportunities, and how Main Street leaders can position themselves to help more entrepreneurs. Rising confidence, revenue, and profits provide a hopeful outlook for 2027, but challenges remain. Local leaders can provide targeted support for struggling enterprises and create entrepreneurial ecosystems that meet the diverse needs of the many types of businesses that serve our communities.
Main Street America is dedicated to supporting small business owners across the country. Are you a local leader looking for additional resources to support your community? Check out our small business resources in Knowledge Hub to learn strategies and tools to help strengthen your local ecosystem. Are you a small business owner? Create an account in our Small Business Hub to connect with other entrepreneurs and explore educational opportunities to support your work.
(Photo of Dakota Emporium Pendleton Merchandise) (Photo of Total Beauty Merchandise Displays)
Both of these Fort Pierre clothing stores appreciate your business. (Photos taken by Sunny Hannum)