As Oklahoma’s population grows, the state’s economy is sending mixed signals with a relatively healthy labor market and rising operating costs for local businesses.
That was the takeaway Wednesday as more than 100 people gathered in midtown for the 2026 State of Small Business luncheon hosted by the Oklahoma Small Business Exchange.
“Business owners tell us costs are up,” said Rose Washington-Jones, CEO of TEDC Creative, an organization which helps support small businesses in Tulsa. “We know that labor (and materials are) more expensive. You can feel it. You can’t hide from it.”
That is making it harder for businesses to be profitable, she added.
“When you can’t fully pass price increases on to your customer, your margins narrow and small businesses have almost no room for error,” Washington-Jones said.
Even with the opportunity to appeal to a wider customer base, it doesn’t mean every business will find long-term success. From March 2023 to March 2024, 12,517 small businesses opened in Oklahoma while 11,064 closed, according to the U.S Small Business Administration.
Mike Bausch, owner of Tulsa-based Andolini’s Pizzeria, said 2026 is one of the “hardest times in the history of the restaurant business” due to inflation.
“You’re going to see a lot of restaurants that you dig close,” Bausch warned. “Restaurants that you would take that friend to are going to close because great food is just the price of admission.”
Andolini’s opened its first location in 2005 before expanding across Tulsa. Bausch attributed its longevity to its marketing strategy. Being Tulsa-centric, and not settling for subpar service, has allowed the business to thrive, Bausch said.
Despite growing expenses, small businesses are still the backbone for Oklahoma’s job market. From March 2023 to March 2024, small businesses contributed a net increase of 16,295 jobs out of 20,366.
Ismael Lele is a Report for America corps member and writes about business in Tulsa for The Oklahoma Eagle. Your donation to match our Report for America grant helps keep him writing stories like this one; please consider making a tax-deductible gift of any amount today by visiting this link.
