May 20, 2026
Small businesses across the Philadelphia region are navigating an economy defined by rising costs, inflation, and ongoing uncertainty tied to tariffs and consumer spending. Yet despite those pressures, many owners are continuing to invest in growth by becoming more strategic about how they manage expenses, staffing, technology, and long-term planning.
New survey findings from WSFS Bank show despite ongoing economic headwinds, optimism among small businesses remains strong. More than nine in 10 business owners and decision makers (92%) say their businesses are meeting or exceeding expectations, while 66% anticipate growth over the next year. Over half (52%) expect revenue increases.
For many businesses, resilience today is about learning how to operate through challenging times. Across industries, companies are taking a closer look at spending, vendor relationships, hiring plans, and operational efficiency to maintain stability while positioning themselves for future growth.
“Small business owners have always had to be adaptable, but today’s environment is requiring an added layer of strategic decision-making,” said Candice Caruso, Senior Vice President and Chief Business Banking Officer at WSFS Bank. “The data shows that business leaders are becoming increasingly focused on where they invest their resources, where to cut costs, and how to position themselves for long-term growth and stability.”
The survey found that roughly one-third of small businesses report having been negatively impacted by recent economic conditions, primarily due to inflation (cited by 52% of respondents), the broader cost-of-living crisis (43%), and tariff-related uncertainty (40%).
In response, more than half of surveyed businesses (51%) say they have reduced non-essential spending, while 31% have shifted to lower-cost suppliers and 27% have renegotiated contracts with vendors.
Many businesses are making smaller operational adjustments rather than putting growth plans on hold entirely. Some firms are reevaluating hiring timelines, while others are revisiting supply chain strategies or looking for ways to reduce overhead without sacrificing customer experience.
According to Andrew Davis, Director of Macroeconomics Research at Bryn Mawr Trust Advisors, the trend reflects a broader shift in how businesses are approaching uncertainty.
“Businesses are recognizing that volatility is likely to remain part of the operating environment for the foreseeable future,” Davis said. “Rather than treating current disruptions as temporary, owners are building flexibility and cost management directly into their long-term planning strategies.”
As businesses look for ways to operate more efficiently, many are also exploring how artificial intelligence can help streamline daily operations and reduce administrative burdens.
Four in five small businesses are already using AI tools in some capacity, most commonly for data analysis (43%) and marketing or content creation (42%). Adoption tends to be strongest among mid-sized businesses, which are leveraging AI tools to support customer service, productivity, cybersecurity, and financial management.
For many smaller businesses, AI adoption begins with practical tasks such as drafting customer emails, organizing marketing campaigns, managing schedules, analyzing sales trends, or improving internal workflows. Data also shows that some business owners, particularly those with fewer than 20 employees and those that have operated longer than 25 years, are still evaluating how AI fits into their operations and weighing concerns around implementation, accuracy, and long-term value.
“We’re seeing a growing interest in tools that help owners save time and make faster, more informed decisions,” Caruso said. “For many businesses, AI adoption starts with operational challenges, whether that’s improving marketing efforts, managing workflows, or gaining better insight into performance, and then expanding from there.”
As operational demands become more complex, business owners are looking for more from their financial institutions.
While overall satisfaction with business banking remains high, smaller businesses and companies that have been operating for fewer than five years are less likely to take advantage of advisory services and financial management tools that could help strengthen long-term operations.
That shift reflects a broader need among business owners for guidance that goes beyond traditional banking services, particularly as they balance near-term financial pressures with future growth opportunities.
“Business owners today are looking for a trusted advisor who can provide more than transactional support,” Caruso said. “They want guidance that helps them navigate uncertainty, evaluate opportunities, and make informed decisions for the future. At WSFS, our team serves as trusted advisors to help these businesses every step of the way.”
For many small businesses across the Philadelphia region, adapting to today’s economy is no longer about short-term survival alone. It’s about building flexibility, improving efficiency, and making thoughtful decisions that position their businesses for long-term stability and growth.
If you have questions about how your financial institution can better support your business, contact the WSFS’s Business Banking Team.
WSFS Bank. Member FDIC. Wilmington Savings Fund Society, FSB d/b/a WSFS Bank. Bryn Mawr Trust is a division of WSFS Bank. Bryn Mawr Trust Advisors, LLC. is an SEC registered investment adviser and a subsidiary of WSFS Financial Corporation. Registration as an investment adviser does not imply a certain level of skill or training.
Bryn Mawr Trust does not provide legal, tax or accounting advice but those services may be provided by affiliates or subsidiaries of Bryn Mawr Trust. Please consult your legal, tax or accounting advisors to determine how this information may apply to your own situation. This communication is for informational purposes only and should not be construed as legal, tax or financial advice or a recommendation of any specific product, service, security or sector. Information has been collected from sources believed to be reliable but has not been verified for accuracy.
INVESTMENTS: NOT A DEPOSIT. NOT FDIC – INSURED. NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY. NOT GUARANTEED BY THE BANK. MAY GO DOWN IN VALUE.
