WSFS Bank says small businesses in the Mid-Atlantic are holding up better than expected despite inflation, tariff uncertainty, and broader economic pressures. In a survey of 505 small business owners and decision-makers, 92% said their businesses are meeting or exceeding performance expectations, while 66% said they expect their businesses to grow over the next 12 months.
The Update
The survey, commissioned by WSFS Bank, the primary subsidiary of WSFS Financial Corporation (Nasdaq: WSFS), found that confidence is strongest among larger small businesses and newer companies.
Businesses with 100 to 499 employees and businesses founded within the last five years each reported 77% optimism for the year ahead. More than half of respondents, 52%, expect revenue to increase over the coming year.
The bank framed the results as evidence that many owners are adapting to a difficult operating environment rather than retreating from it.
Business Context
The survey also shows where pressure remains. Among respondents who said their business has been negatively affected, 52% cited inflation as the main driver. That was followed by the cost-of-living crisis at 43%, tariff-related uncertainty at 40%, and recession concerns at 33%.
To protect cash flow, many businesses are already adjusting operations. More than half, 51%, have reduced non-essential spending. Another 31% have shifted to lower-cost suppliers, and 27% have renegotiated contracts with existing vendors.
For lenders, treasury teams, and financial operators, those responses matter because they point to a customer base that is still active but increasingly focused on liquidity, cost discipline, and supplier resilience.
Market Signal
The survey suggests small business banking relationships remain important even when sentiment is positive. Overall satisfaction with banking partners stands at 84%, but WSFS said smaller, newer, and lower-revenue businesses may benefit from deeper relationships that provide more expertise and resources.
Candice Caruso, Senior Vice President and Chief Business Banking Officer at WSFS Bank, said: “Small business owners have proven to be skilled navigators of uncertainty, turning economic challenges into opportunities for refinement.”
She added that WSFS aims to support businesses with cash-flow help, risk guidance, lending options, and advisory support. WSFS also said its associates are focused on helping owners connect day-to-day financial needs with long-term growth planning.
The survey also points to the growing role of technology in operating models. Four in five respondents, or 81%, said they use AI tools for at least one business function. The top use cases were data analysis and information gathering at 43%, and marketing and content creation at 42%.
Larger businesses with annual revenues above $250,000 are adopting these tools at higher rates than smaller peers, suggesting that scale and resources still shape technology uptake.
What It Means for Buyers, Banks, or Investors
For banks and financial infrastructure providers, the results point to continuing demand for working-capital support, advisory services, and tools that help businesses manage risk and cash flow.
For buyers and vendors serving small businesses, the survey suggests clients are still willing to spend, but they are being more selective. Lower-cost suppliers, contract renegotiation, and cuts to non-essential spending indicate that procurement is under more scrutiny.
For investors and operators, the data suggests resilience is uneven. Larger and newer firms appear more confident, while smaller and lower-revenue businesses may need more support to sustain growth through inflation and policy uncertainty.
The survey was conducted online by Opinium from March 18 to March 28, 2026, among 505 small business owners and decision-makers in the Mid-Atlantic region. Respondents had annual revenues of up to $5 million and at least two employees. The margin of error was +/- 4 percent.
Key Takeaways
- 92% of surveyed Mid-Atlantic small business decision-makers said their businesses are meeting or exceeding expectations.
- 66% expect their businesses to grow over the next 12 months, and 52% expect revenue to increase.
- AI use is already widespread, with 81% using AI for at least one business function.
FinanceInsyte's Take
The main takeaway for financial decision-makers is not just that small businesses remain resilient, but that resilience is being managed through tighter spending, supplier changes, and more active use of banking support. That combination can sustain operations, but it can also leave businesses more exposed if inflation or tariff uncertainty worsens.
The survey does not prove broad economic strength across the region. It does, however, signal that many mid-market and smaller firms are still operating with enough confidence to plan ahead, even as they remain focused on cost control and cash flow. For banks, the opportunity is less about headline optimism and more about meeting clients where pressure is highest: liquidity, advice, and practical risk management.
The company did not disclose further details in the announcement.
Source: Businesswire
