Small Businesses Bet Big on Tech to Stay Ahead in 2026

In 2026, small businesses are gearing up to invest more in technology. A recent study shows that 55% of them plan to spend more on tech, while only a small 5% are looking to cut back. This shift highlights how important technology has become for staying competitive and meeting customer needs. Technology is no longer just an add-on for small businesses; it's a must-have. The study points out that customer expectations are the biggest reason behind this tech push, with 55% of businesses focusing on this. Close behind are the potential returns on investment and cost savings, which matter to 42% of businesses. Keeping up with competitors is also a big deal, driving 37% of these tech decisions.So, what tech are they investing in? Web development tops the list at 39%, followed by mobile app development at 38%, and software development at 37%. Artificial intelligence (AI) is also gaining traction, with 32% planning to spend more on it. AI and automation are seen as key to streamlining workflows and boosting productivity. But it's not all smooth sailing. Many small businesses struggle with tech execution. Limited in-house tech skills, rising costs, and economic uncertainty are major hurdles. To tackle these challenges, businesses are turning to external experts. About 45% rely solely on their internal teams, while 21% use a mix of in-house and outsourced help. A smaller group, 13%, depend entirely on external partners. When choosing external help, quality of work and cost are the top priorities. This shows that small businesses are looking for reliable partners to help them implement technology effectively and stay competitive.