AEO Statement on the 2026 State of the Union and Its Implications for Small Businesses

Statement from Natalie Madeira Cofield, President & CEO of the Association for Enterprise Opportunity

Washington, DC — February 25, 2026

Last night’s State of the Union address outlined a broad vision for national economic growth, affordability, border security, and global competitiveness. As policymakers assess its implications, it is important to consider what the address means for America’s small business sector — which represents 99% of U.S. firms and employs nearly half of the private workforce.

In recent decades, presidents of both parties have typically included explicit recognition of small businesses in major economic addresses, often positioning entrepreneurs as central drivers of job creation and community stability. The absence of a direct reference this year is therefore notable.

Small businesses do not experience the economy at the macro level. They experience it through daily operational realities: access to capital, cost of goods and supply chain stability, workforce availability, healthcare and benefit expenses, federal contracting access, and regulatory clarity. Broad economic growth does not automatically translate into small business resilience.

Entrepreneurs operate with thinner margins, less pricing power, and greater exposure to policy volatility than larger firms. When national priorities are outlined, implementation details determine whether small enterprises are positioned to participate in economic expansion — or left to absorb unintended consequences.

As Congress and the administration advance the priorities outlined in the address, it will be critical to ensure that small businesses are explicitly considered in regulatory design, procurement strategies, capital deployment, workforce initiatives, and emerging technology governance.

The measure of success will not simply be headline growth — it will be whether entrepreneurs on Main Street can sustainably hire, invest, innovate, and compete in an increasingly complex economic environment.

The Association for Enterprise Opportunity remains committed to working with leaders across the political spectrum to ensure that small businesses are central — not peripheral — to national economic strategy.