Richmond Region Business Survey
170 local, independent businesses · Reporting on 2025 performance · Fielded Feb–Mar 2026profitable or break-even — best in 4 years
Up from 79% in 2025
say operating margins improved vs. 2 years ago
31% say they are worse
reported revenue growth in 2025
Down from 77% in 2024
raised prices to offset rising costs
61% of those saw customer behavior change
saw their total tax burden increase
79% of renters saw occupancy costs rise
of employer businesses reduced owner compensation
The last lever — and the least visible
very or mostly confident in their own sustainability
Over the next 12–18 months
pessimistic about the local economy
Up from 24% in 2025, 17% in 2024
plan to increase employment over next 12 months
Down from 43% in 2025
find it somewhat or very difficult to find suitable applicants
involved in community support in some form
75% donate products or services
introduced meaningful innovations in 2025
Up from 61% in 2024
of innovators adopted new tech or digital tools — the #1 type
actively using AI in day-to-day operations
82% of AI users for marketing & content
Expansion territory — businesses running stronger operations in a more uncertain world
Debuts in 2026 · Scale: −100 to +100Financial health is at a four-year high.
Despite a challenging cost environment, more businesses are profitable than at any point since 2022 — and nearly half report improved margins.Revenue growth slipped from 77% in 2024 to 68% in 2025 — but profitability rose. Businesses are doing more with less, not growing their way to health.
Cost pressure is hitting from every direction.
Taxes, occupancy, and labor are squeezing margins simultaneously. Many owners are absorbing costs invisibly — by cutting their own pay.Owner compensation cuts are the least visible cost-cutting lever — and the most personal. This figure is an important input for InUnison's policy and advocacy work.
Local optimism is holding — but eroding.
Businesses feel far worse about the national economy than their own backyard. Richmond's local market remains a genuine buffer, but pessimism is climbing year over year.74% are confident in their own business's sustainability over the next 12–18 months — even as they grow more worried about the broader economy. Personal resilience is outpacing systemic confidence.
Hiring intent is softening; community ties remain strong.
Fewer businesses plan to grow their teams than a year ago, and talent remains hard to find. But local engagement — donations, volunteering, civic participation — is nearly universal.93% community engagement isn't incidental — it's the case for why local matters. These businesses are embedded in Richmond in ways chains and remote employers simply aren't.
Innovation is accelerating — led by technology and AI.
Nearly three in four businesses introduced meaningful innovations in 2025, up sharply from 2024. Technology adoption is the leading innovation type, and AI use is gaining real traction.36% AI adoption in independent businesses is a meaningful number. These aren't early adopters at large firms — they're local retailers, service providers, and restaurateurs finding practical uses for AI tools.
Download the full report
Richmond’s independent businesses are running stronger operations in an increasingly uncertain world, and there’s much more to the story. Download the full State of Local 2026 report to explore complete findings, trend comparisons, and what the data means for the year ahead.