Small business owners stayed upbeat about growth in the second quarter even as their biggest worry shifted, according to a new Small Business Cash Flow Trend Report from OnDeck and Ocrolus released July 31, 2026. The survey found that 93% of owners expect moderate to significant growth over the next year, in line with the first quarter.
For self-employed workers and microbusiness owners, the report offers a read on the pressures shaping the wider small business economy they compete in. Two findings stand out: a return of inflation as the top concern and a steady march away from traditional banks.
What The Report Found
Small business optimism held firm despite the shift in worries. Inflation reclaimed the top spot among concerns at 34%, edging past cash flow at 30%, which suggests owners feel more squeezed by rising costs than by the timing of money moving in and out.
On financing, 75% of small businesses said they bypassed traditional banks during the quarter, consistent with recent trends. AI use kept climbing, with 61% now using the technology, up from 58% in the first quarter, and 91% of those users reporting a positive impact on their business.
Why This Matters For The Self-Employed
Self-employed owners feel these forces directly, because there is no finance department to absorb them. When inflation leads the list of concerns, it usually means input costs, software subscriptions, and subcontractor rates are all creeping up at the same time.
The move away from banks is just as telling. Solo owners often struggle to qualify for traditional loans, so the growth of online lenders and alternative financing reflects where many turn when a bank says no or simply moves too slowly.
What Self-Employed Owners Should Do Next
Revisit your pricing with inflation in mind. If your rates have not moved in a year while your costs have, a modest increase or a repackaged offer can protect your margin without scaring off clients.
On cash flow, build a buffer before you need it. Line up a credit option in advance, whether a line of credit or invoice financing, so a slow-paying client does not force a rushed and expensive decision. As Ocrolus small business general manager David Snitkof put it, “non-bank loan inflows rose year over year, while traditional bank loan inflows declined.”
What To Watch Next
Watch whether inflation stays the dominant concern in the next quarterly read, and whether AI adoption keeps climbing toward the two-thirds mark. Both trends shape the tools and costs that solo owners plan around.
If cash flow is your pressure point, the financing landscape is changing quickly. Our coverage of new invoice factoring options for small businesses shows how independent owners are bridging the gaps between invoices and payments.
Photo by Maranda Vandergriff: Unsplash
