The Backbone of the Economy, the Heart of Our Mission
Each year, KeyBank conducts a Small Business Survey to better understand the challenges and opportunities that small business owners are facing. This year’s edition surveyed 1,500 small business owners across the country, aged 18 – 99, who own or operate a small-to-medium-sized business and have an annual gross revenue of less than $10 million.
Findings from our 2026 Small Business Survey showed the desire to protect customer loyalty runs deep, as one-third (33%) of owners are absorbing rising costs with their own paychecks rather than passing them on to customers. This strategic decision to temporarily adjust their own pay as a strategy to preserve customer loyalty underscores the value they place on relationships they’ve built. It also shows they yearn to hold on to the American dream, as 88% of owners say they are just as motivated by the original dream that started their business.
Turning Obstacles Into Opportunity
Although inflation and rising costs remain a dominant threat for the second year running, cited by 53% of owners (up from 50% in 2025), these small business owners are continuing to rebuild their financial position, with 23% strengthening cash reserves and 26% paying down debt this year. More than half (54%) of owners are certain they could fund one month of operating expenses from cash reserves alone (up from 33% in 2024).
What’s most encouraging is that fewer owners are in survival mode compared to last year (17%, down from 23% in 2025), and 28% are actively investing for long-term growth (up from 22% in 2025). Another win from this survey is that almost every small business owner surveyed said they’ve had a tangible win this year, with 94% of owners reporting they made one accomplishment this year, 79% saying two or more, and nearly two-thirds (62%) stating three or more.
Supporting the Dream Behind Every Small Business
At Key, we see small business owners as the backbone of our economy, and our mission is to help them fulfill their dreams and reach their vision of success. Nearly half (46%) of small business owners surveyed defined success as achieving financial security, while 34% noted building a family legacy as a top priority. Providing clients with the resources, insights, and financial expertise they need to navigate changes and uphold their legacies is paramount at Key.
To help guide small business owners into their next chapter, I've outlined three strategies for building long-term success:
1. Prioritize Cash Flow and Build a Financial Cushion
Economic factors such as inflation and rising costs may be outside your control, but maintaining visibility into your cash flow isn't. To stay on track, it’s important to regularly review expenses, identify areas to improve efficiency, and work toward building cash reserves to prepare for possible periods of uncertainty. Understanding your finances and taking small, consistent steps can strengthen your financial foundation and create greater flexibility for future opportunities.
2. Invest in the Customer Relationships That Fuel Your Business
This year’s survey showed that small business owners are willing to make short-term personal sacrifices to preserve customer loyalty. By continuing to communicate openly with customers, delivering consistent value, and looking for ways to enhance their experience, you’re building strong relationships that can sustain hard times. Strong customer relationships not only help retain revenue during challenging times, but they can also generate referrals and long-term growth.
3. Balance Today's Needs With Tomorrow's Goals
While it's important to navigate current economic pressures, don't lose sight of the vision that inspired you to start your business. Whether that means investing in new products, adopting technology that improves efficiency, or developing a succession plan, small investments in the future can help preserve your legacy and position your business for long-term success.
The resilience and determination of America's small business owners continue to inspire us at Key. By working with a Key business banker, owners can strengthen their financial foundations and protect the dreams they've built and the legacies they hope to leave behind.
For additional insights and resources to help your business, visit Small Business Advice or connect with a business banker at a KeyBank branch near you.
Content provided for informational and educational purposes only and is in no way to be construed as financial, investment, or legal advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals.