Faced With Inflation, Small Businesses Are Doubling Down in 2026

It’s no secret that small businesses are feeling the pressure right now. So when we asked them about their biggest worry for the year ahead, their top answer was exactly what you’d expect: inflation.

But when it came to what they planned to do about it — well, their answer might surprise you.

For our latest Small Business Now report, we surveyed over 1,500 small business owners across the US, UK, Canada, Australia, and New Zealand to understand their concerns and strategies around marketing for 2026.

We found that the vast majority are refusing to hit the brakes. Instead of cutting back on marketing, they’re doubling down.

The vibe for small businesses right now is cautious but strategic

Small business owners are realists; they see the current economic hurdles loud and clear. When we asked what was keeping them up at night, their top answer was no surprise.

41% of small business owners say inflation and rising costs are their top concerns this year — but that’s only half the story.

Despite the economic challenges, they aren’t just hoping for the best; they’re actively planning for success. They are focusing on what they can control, with 50% prioritizing “improving efficiency” and 36% creating or refining their marketing strategy to ensure they succeed in the year ahead.

So what does this tell us? It says that small business owners have a healthy dose of realism, but an even bigger dose of strategic resolve. They know the environment is tough, but they’re betting on their ability to work smarter in order to succeed.

The strategy is investing, not retreating

When times get tough, the old playbook says to tighten your belt and cut costs wherever you can. But small businesses in 2026 are flipping the script.

They aren’t just hoping for growth, they’re actively investing in it. Instead of shrinking their marketing budgets, they’re hitting the accelerator: 68% of small business owners expect their marketing budgets to increase in 2026, while 74% expect the time they spend on marketing to increase this year.

The message is clear: the winning strategy isn’t to hide out until the storm passes. It’s to invest your time and money into the growth driver of your business — your marketing! — to come out stronger on the other side.

Small businesses are focusing on what they already know works

So, where is all that investment going? It’s flowing directly into the proven, high-impact digital channels that small businesses believe in most.

When we asked which channels they expect to provide the most value this year, the answer was decisive: 68% expect social media (both organic posting and paid ads) to be their most valuable channel, with email marketing following as the second most valuable at 41%.

And there’s a new tool in the toolbox that’s helping businesses do more with less. AI is no longer a futuristic buzzword; it’s now a handy go-to assistant that can help you manage these crucial channels.

54% of small businesses are already using AI and another 27% plan to start using it this year, relying on it for tasks like analyzing trend data (45%), writing emails or other content (44%), and creating images (40%).

The takeaway is simple. The smartest businesses are concentrating their efforts on a powerhouse duo of social media and email, and they’re amplifying those efforts with powerful new technology to make every dollar (and every minute) count.

Your 2026 playbook: how to double down the right way

You’ve seen what other small businesses are doing. Now let’s turn those insights into your own action plan. Here’s a simple three-step playbook to help you play offense this year.

Move #1: Master your high-value channels

The data shows that small businesses are putting their faith in two powerhouse channels, believing that social media and email marketing will deliver the most value.

The move here isn’t just to use these channels, it’s to master them. Don’t just post — connect. Don’t just send emails — build relationships. This is where your marketing investment will work the hardest, so make every dollar (and every minute) count by focusing your energy on what works.

Move #2: Make AI your new assistant

One of the biggest hurdles for any small business owner is the never-ending need to create fresh content. Staring at a blank page when you have a million other things to do is a huge time-suck. 

Consider joining the 81% of small businesses that are already embracing or planning to use AI this year, and use it to tackle the “blank page” problem for good.

Ask it to analyze trends (like 45% of small business owners are doing) to find out what your audience wants to hear about.

Or let AI compose a first draft of your next email newsletter (like 44% of small business owners surveyed are already doing), turning an hour of work into 10 minutes of editing.

Think of AI as your assistant that never sleeps, freeing you up from time-consuming manual tasks to focus on the big picture strategy.

Move #3: Put your marketing on autopilot

Working harder isn’t the answer; working smarter is. With 50% of small businesses prioritizing efficiency, the goal is to get more done with less manual effort. That means building a system that works for you even when you’re not working.

The key is to use a single platform that can streamline and automate your high-value channels. Instead of jumping between a bunch of different tools, use one tool that can manage your social media and email marketing all in one place.

Then, use automation to handle the repetitive tasks. Set up a welcome series for new subscribers, automatically send abandoned cart reminders, or schedule a month’s worth of social posts in one sitting.

To succeed in 2026, it’s time for small businesses to play offense

The message from over 1,500 small businesses is loud and clear: 2026 is not a year for sitting on the sidelines. Despite economic challenges, the overwhelming strategy is investing strategically instead of pulling back.

If you’re feeling the pressure of rising costs, know you’re not alone. But more importantly, know that you’re in good company when you choose to face these challenges head on and invest in your business’s growth.

Curious to know more about how small businesses are gearing up for success in 2026? Download the full Small Business Now report below to dive deep into all our findings.

Your 2026 playbook is straightforward: master your high-value marketing channels, make AI your new assistant, and work smarter, not harder.

With Constant Contact’s all-in-one digital marketing platform, you can do it all in one place: manage your social media and email marketing, create content in a snap with AI, and use automation to free you up to focus on the bigger picture. Start your free trial today.