US' 23% small business owners in survival mode: Report

Still, 40 per cent of small business owners are cautiously planning ahead for their businesses' futures. Another 46 per cent say they are certain they could cover one month of operating expenses if an emergency arose, down just slightly from KeyBank's Fall 2024 Small Business Survey (49 per cent), suggesting that they are preparing for stability and sustainability despite uncertainties.

Even with an extra cushion of expenses saved, half (50 per cent) of small business owners said their top concern is inflation and rising costs–far outpacing factors like competition (33 per cent), cash flow (25 per cent) and labour shortages and hiring challenges (22 per cent). In fact, a quarter (25 per cent) of small business owners is increasing prices for customers in light of recent tariffs and rising costs. Cybersecurity also remains a key issue for small business owners, with 41 per cent citing payment fraud as their top concern, followed by phishing and email scams (27 per cent) and identity theft (26 per cent).

With Federal legislation changes likely coming in the last few months of 2025, 72 per cent of small business owners are very concerned these changes will have an impact on their operations. But 80 per cent feel confident to make key, informed decisions amid today's economic and policy uncertainty–though they do admit they might be second guessing at times.

"Navigating the current economic environment has proven to be no small feat for small business owners," Mike Walters, president of business banking at KeyBank, said in a press release. "It's reassuring to see small business owners' passion and perseverance, despite the challenges that have come their way. Their ability to adapt—whether through tightening expenses, finding new ways to serve customers, or preparing for regulatory shifts—shows the grit and creativity at the heart of the small business community. It's that determination that allows them to build the foundation needed for long-term growth."

As small business owners look ahead to 2026, many are focusing on building resilience by investing in both strategic planning and personal well-being. According to recent findings, 21 per cent of business owners say they would feel more secure by having regular conversations with their business bankers, seeking expert guidance on critical areas such as cash flow (33 per cent), financial planning (33 per cent), and tax strategy (31 per cent). At the same time, maintaining personal resilience remains a priority, with 30 per cent noting that getting a good night’s sleep helps them better navigate daily business challenges while staying focused on long-term goals.

"Small business owners are proving that resilience is more than just surviving challenges; it's about planning ahead, leaning on trusted advisors, and making sure they have the clarity and confidence to move forward," said Walters.

This survey was conducted online with Survey Monkey, including 2,144 respondents, ages 18-99, from across the US, who own or operate a small-to-medium size business with an annual gross revenue of less than $10 million, completed the survey in July 2025.

ALCHEMPro News Desk (RR)