Small Businesses Set for Growth as AI Starts to Deliver Results: 3 Takeaways from New Report

The future looks bright for small businesses and their finance teams.

Ninety-three percent expect growth over the next year, according to the latest Small Business Cash Flow Trend Report from OnDeck and Ocrolus. They expect growth ranging from moderate to significant.

And the optimism is genuine: Almost 70% are on track to meet or beat their 2026 profit plans.

Two reasons behind the optimism:

1. Small Businesses See AI Impact

This year, business leaders have shifted their thoughts and plans about AI usage from adoption to impact — and it’s paying off. More than 90% of those who have adopted AI in their workflows report a positive impact in these areas:

• Reduced operating costs: 23%
• Increased revenue: 15%
• Improved employee productivity: 38%
• Faster customer response times: 27%
• Reduction in errors or rework: 40%
• Improved marketing performance (e.g., higher conversion rates): 34%, and
• Ability to operate with fewer staff / avoid new hires: 28%.

Finally seeing an impact, 95% of small business leaders already using AI plan to either maintain or increase their investments in tools over the next six months.

“Small business owners are carrying real momentum into the end of the year, and they’re keeping their customers at the center of their plans,” said Jim Granat, Co-President of Small Business Lending at Enova. “Seasonal demand and consumer spending are among the biggest factors guiding their strategy, and with confidence holding steady, they’re planning ahead for the growth they expect.”

2. Cash Flow Remains Resilient

More good news: Finance pros report cash flow resilience, holding steady over the long term. Month-to-month variations from Q2 to Q3 included a 6% increase in quarterly median monthly revenue. Meanwhile, expenses rose 5%, keeping the revenue-expense ratio above 100%.

“The cash flow data shows small businesses operating from a position of strength,” said David Snitkof, General Manager of Small Business at Ocrolus. “Revenue rebounded and kept pace with expenses, and owners continue to look beyond traditional banks as they fund growth.”

Similar to last year, 71% of these finance pros reported they have at least one month of operating expenses in cash to maintain a working capital fund. To manage cash flow, the businesses continue to rely mostly on:

• Business line of credit: 57%
• Delaying payment to themselves or family: 50%, and
• Making only the minimum payment on credit cards: 38%.

But it’s not all rosy. Small business owners and their finance leaders face some challenges.

3. Financial Challenges

Not surprisingly, the biggest concern is inflation, with more than 35% of organizations citing it as their top concern. Concerns about cash flow have eased for the second straight quarter, dropping to 28% from 31% of leaders citing it as their top worry.

A distant third place is revenue, cited by just 16% of leaders, furthering the reasons behind their optimism for hitting goals this year and growth next.