In Richmond, small independent businesses play a significant role in shaping the local economy. Understanding how those businesses are really doing requires a clear, cohesive measure of confidence that can easily indicate business health.
That’s why InUnison, an organization dedicated to preserving and advancing local businesses in the Richmond region, created the Local Business Confidence Index, a tool designed for local businesses that offers a clear view of business health by monitoring five key areas: revenue growth, profitability, local economic outlook, financial security and hiring intent. This tool provides business owners with data that reflects areas typically underrepresented in traditional economic data.
“Unlike most business confidence indexes, which track large corporations, ours reflects the sentiments of small, locally owned businesses. That’s a segment that rarely shows up in national data but is central to how a regional economy actually functions,” said Diana McMahon, vice president of InUnison.
The findings are positive overall for the Richmond region. 2026 presented a composite score of +34.2. This is on trend with the previous scores of +36.7 (2024) and +33.4 (2025). These data points reflect that small businesses are in stable expansion territory.
Other key points reveal a -20.4 decrease in the revenue growth score since 2024, while profitability shows its strongest reading yet at +54. Over the past three years, the local economic outlook has declined toward neutral, yet financial security rose by 8.9 following a dip in 2025, suggesting that while businesses are cautious about the broader economy, their own financial footing is recovering.
The Confidence Index results provide a nuanced view of how Richmond’s independent businesses are adapting and responding to changing economic conditions. The data shows that, despite uncertainty, businesses are holding steady with profitability at its strongest reading yet, even as revenue growth has moderated. The composite score indicates that the local economy remains in expansion mode, although with moderate momentum.
The Local Business Confidence Index is a composite measure that captures how independent businesses are performing, drawing from the State of Local survey, a report that provides insights into trends, challenges and opportunities within the Richmond business landscape.
The index scores each dimension on a scale from –100 to +100. Scores above +10 signal expansion, while those below –10 indicate contraction. Each score is calculated by subtracting the percentage of negative responses from the percentage of positive ones. The final scores are averaged into a single score that reflects the overall health of Richmond’s small-business economy. The methodology enables InUnison to understand current conditions and track them over time. Notably, the Local Economic Outlook component, which measures how businesses view the broader regional economy, has reached +8.0, dipping below the index’s expansion threshold of +10 and into neutral territory. This is the only dimension currently in the neutral zone, and warrants watching as a leading indicator of broader sentiment shifts.
This pulse check of the local business landscape enables annual comparisons of Richmond business and lays the groundwork for deeper analysis, ultimately helping business owners, policymakers and community stakeholders to benchmark and make data-driven decisions.
The full Business Confidence Index report debuted alongside the State of Local report on April 16, 2026. Both reports serve as indicators of the health and success of Richmond businesses and play a key role in shaping the local business ecosystem.
Visit inunison.org for more information.
