Core Insights - More than half of Taiwan's small businesses reported growth in 2025, with expectations for 2026 showing improved sentiment, the strongest since before the pandemic [1][2] Group 1: Business Growth and Sentiment - 53% of Taiwanese small businesses expanded in 2025, slightly down from 57% in the previous survey, but 63% anticipate growth in 2026 [2] - Confidence in Taiwan's economy has improved, with 61% of respondents expecting economic growth in 2026, the highest since 2018 [3] Group 2: Employment and Job Creation - In 2025, 31% of small and medium-sized enterprises (SMEs) in Taiwan increased their headcount, and 44% plan to hire more staff in 2026 [3] Group 3: Investment Trends - Rising global demand for semiconductors and AI-related chips is creating opportunities for exporters and suppliers in Taiwan [4] - Investment in artificial intelligence (AI) has become more prominent, with 33% of businesses identifying AI as their primary investment area in 2025, up from 29% the previous year [4] Group 4: Cybersecurity and Technology Investment - The proportion of small businesses reporting losses due to cyber incidents dropped from 59% in 2024 to 27% in 2025, attributed to increased awareness and use of cybersecurity measures [5] - Only 40% of Taiwanese respondents reported that their technology investments in 2025 led to higher profitability, compared to a survey-wide average of 56% [5] Group 5: Financing Conditions - Two-thirds (66%) of businesses found obtaining external finance easy, a significant increase from 28% in 2024, placing Taiwan among the top three markets surveyed [6] - Looking ahead to 2026, 63% expect access to finance to remain favorable [6]