Business optimism is returning for small and midsize business leaders at the start of 2026, fueling confidence and growth plans.

The 2026 Business Leaders Outlook survey, released in January by JPMorganChase reveals a turnaround from last June, when economic headwinds and uncertainty about shifting policies and tariffs caused some leaders to put their business plans on hold.

Midsize companies, who often find themselves more exposed to geopolitical shifts and policy changes, experienced a significant dip in business and economic confidence in June of 2025. As they have become more comfortable with the complexities of today’s environment, we are seeing optimism rebounding in the middle market nationwide – an encouraging sign for growth, hiring, and innovation. Small businesses, meanwhile, maintained steady optimism throughout 2025, but they aren’t shielded from domestic concerns. Many cited inflation and wage pressures as the top challenges for 2026 and are taking steps to ensure their businesses are prepared for what’s ahead.

“Middle market executives across the Southwest are realistic about the challenges facing their businesses in the year ahead, with labor remaining one of the most significant concerns in the region,” said Diego Gordillo, Southwest Segment Head of Commercial Banking for J.P. Morgan. “Leaders are clear-eyed about the challenges, but positive about company performance and the local economy in the year ahead.”

Overall, both small and midsize business leaders are feeling more confident to pursue growth opportunities, embrace emerging technologies and, in some cases, forge new strategic partnerships. That bodes well for entrepreneurs in Mississippi. Here are a few other key findings from the Business Leaders Outlook about trends expected to drive activity in Jackson this year:

1) Inflation remains the top concern for small business owners. Following the 2024 U.S. presidential election, many anticipated a favorable business environment. By June 2025, however, that feeling shifted amid concerns about political dynamics, tariffs, evolving regulations and global economic headwinds.

Going into 2026, 37% of respondents cited inflation as their top concern. Rising taxes came in second at 27% and the impact of tariffs was third at 22%. Other concerns included managing cash flow, hiring and labor costs.

2) For middle market leaders, uncertainty remains an issue. Almost half (49%) of all midsize business leaders surveyed cited “economic uncertainty” as their top concern – even with an improved outlook from a few months ago. Revenue and sales growth was second at 33%, while tariffs and labor both were third at 31%.

3) And tariffs are impacting businesses costs. Sixty-one percent of midsize business leaders said tariffs have had a negative impact on the cost of doing business.