Rising Costs Are the No. 1 Stressor For Small Businesses — Here’s the Surprising Solution You Can Use to Fight Back

Entrepreneur

by Colin Twomey

February 19, 2026

AI-Generated Deep Dive Summary

Rising costs and inflation have emerged as the top concern for small businesses, with nearly half of business owners citing these challenges as their primary stressor. Despite economic pressures, many are turning to personal funds to manage expenses, reflecting the financial strain caused by prolonged uncertainty. However, small businesses are not just surviving—they are strategically pivoting to drive growth. By investing in modernized marketing, advanced technologies like AI, and digital transformation, they are overcoming obstacles and positioning themselves for success. The article highlights that 57% of small businesses anticipate revenue growth this quarter, driven by their proactive investments. Many are focusing on market segmentation to better align with customer needs and preferences. This involves dividing customers into smaller, more targeted groups based on shared characteristics, allowing for customized messaging and promotions. By leveraging behavioral data from marketing automation tools, businesses can enhance their targeting efforts and improve campaign effectiveness. In addition to market segmentation, small businesses are expanding their use of digital channels and technologies to meet customers where they are. This includes augmenting traditional marketing strategies with new platforms and tools that extend reach and engagement. The integration of proactive AI and other advanced technologies is also playing a key role in optimizing operations and driving efficiency. These investments not only help businesses navigate challenges but also create opportunities for sustained growth. For startups, this shift from survival to strategic growth is particularly significant. By embracing modern marketing techniques and leveraging technology, small businesses are demonstrating resilience and adaptability—a crucial lesson for entrepreneurs navigating their own early-stage challenges. The ability to pivot and innovate in the face of adversity not only addresses immediate concerns but also positions these businesses for long-term success. In summary, while rising costs remain a pressing issue, small businesses are proving that strategic investments in marketing, technology, and digital transformation can lead to growth even in tough economic conditions. For startups and other small businesses, this underscores the importance of staying proactive and adaptable in overcoming challenges and seizing opportunities for growth.

Verticals

startupsbusiness

Originally published on Entrepreneur on 2/19/2026