Nevada State Bank has released the results of its 13th annual Small Business Survey that show a five-year high in economic confidence.
The survey released ahead of a Nevada State Bank breakfast hosted Thursday at the Four Seasons Hotel Las Vegas was conducted by research firm Applied Analysis. It got feedback from more than 500 randomly selected small business decision-markers, including owners, operators and executives across Nevada.
The survey was done in January before the rise in gas prices because of the U.S. and Israeli fight with Iran that has sent oil prices skyrocketing and the stock market falling.
While inflation remains the top concern for small businesses, driving 53.3 percent of businesses to raise prices and 36.8 percent to extend operating hours, overall optimism continues to trend upward.
The results show a five-year high in economic confidence, with 74.8 percent of respondents saying the state economy is on the right track and 72.5 percent expressing confidence in the national economy, the strongest levels since 2020.
There’s a lot of momentum being driven by technology adoption. More than half of small businesses are already using AI, with an additional 35.5% planning adoption within the next year, signaling a growing focus on innovation and efficiency despite ongoing economic pressures.
Terry Shirey, president and CEO of Nevada State Bank told the Business Press he was a little surprised by the survey results with the growth in optimism.
“There is a level of optimism that we haven’t seen since pre-COVID,” Shirey said. “They (small business owners) are optimistic about the direction of the state and local economy, and they are feeling much better about the workforce. It has been a persistent challenge to find qualified employees.”
Shirey said there was a lot of “economic noise” in 2025 around tariffs, and inflation was an issue. There are still concerns about that and the cost of goods.
“But that didn’t temper their overall optimism, which is good to see,” Shirey said.
Shirey said he did not know if the current optimism in the local business community would continue.
“It is hard to predict what they would say if the survey was done, today,” he said. “Oil over $100 a barrel renews fears of inflation, and we see it in the stock market right now and how this will play out long term. As I look back over the last five or six years, we have done this survey for 13 years. Five or six years ago, it seemed every year something would happen between conducting the survey and release of the survey. This year was no different with what’s going on in the Middle East. But by the end of the year, the economy fared in line with what small businesses expected. It just seems they are very resilient. Small businesses have learned to adapt to situations that seem to arise on a more regular basis. It shows how resilient our economy and state is. But if they answered, today, they would probably show a little more concern around the direction of the state and the local economy.”
Shirey said the small businesses saw improved results in 2025 when faced with some big challenges with inflation, tariffs and other issues, and that he’s confident the economy will perform well this year. More than half of small businesses surveyed said rising prices in the past year impacted their business and expect to be challenged by that.
“We have withstood these shocks on a regular basis over the last six years, and we still seem to preserve,” Shirey said.
The downturn in tourism in Las Vegas even though a lot of small businesses serve that sector doesn’t seem to have impacted their outlook. Those issues still existed in January when the survey was conducted, he said.
“They still have concerns about inflation and the cost of goods sold,” Shirey said. “The cost of health care is an issue that has popped onto our list of their top concerns this year. While they are optimistic about the economy they are still feeling this level of anxiety of where it is going to go long term. That shows up on the list every year. It shows small businesses are always watching the economic metrics. They are worried about things out of our control with the broader economy.”
Shirey said what he found interesting about the survey was the results concerning AI with more than half of them using it. What he said jumped out at him was those who use it tend to outperform in terms of revenues and income. They also outperformed in terms of workforce growth.
“They are using AI, but they are also hiring people,” Shirey said. “They are finding ways to be more efficient and more effective and not necessarily replacing people.”
A majority of businesses are anticipating workforce growth, and that’s good news for the economy, Shirey said.
