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Small Business Owners in Survival Mode: Insights from KeyBank's 2025 Survey

In a challenging economic landscape marked by rising costs and shifting policies, many small business owners are finding themselves in survival mode. KeyBank's recently released 2025 Small Business Survey sheds light on the unique challenges that small businesses face and the adaptive strategies they are employing to navigate these turbulent times.

Current Landscape for Small Business Owners

According to the survey, around 23% of small business owners report being in survival mode, unable to prioritize long-term planning due to immediate concerns. This precarious position is evident as nearly half (46%) of respondents expressed feeling that their business performance did not meet their expectations over the past year. Although these statistics paint a sobering picture, they also highlight the resilience and adaptability present among small business owners.

Despite the struggles, 40% of small business leaders are cautiously optimistic and preparing for the future. An important aspect of preparation is financial security; 46% say they could cover at least one month of operating expenses if an emergency arose, a slight decrease from 49% in the previous year's survey. This indicates ongoing efforts to ensure financial stability amidst uncertainty.

Inflation: A Major Concern

One pressing issue for small business owners is inflation, with 50% citing it as their top concern, surpassing other challenges such as competition (33%) and cash flow issues (25%). In response, about 25% have increased their prices to counteract rising costs from tariffs and inflation. Furthermore, cybersecurity threats continue to loom large, with 41% identifying payment fraud as a primary concern, followed closely by phishing and identity theft issues.

Looking ahead, 72% of respondents expressed apprehension about potential impacts from anticipated federal legislative changes on their operations. Yet, 80% remain confident in their ability to navigate the complex economic landscape and make informed decisions, even admitting to occasional second-guessing during these uncertain times.

Mike Walters, President of Business Banking at KeyBank, commented on the survey findings, noting, "Navigating the current economic environment has proven to be no small feat for small business owners. Their passion, perseverance, and capacity for adaptation exemplify the grit that fuels the small business community."

Adaptive Strategies for Resilience

As small business owners look to 2026, many are seeking to bolster their business through strategic planning and self-care initiatives. For instance, 21% believe their security would improve with regular consults with business bankers, especially regarding cash flow and financial planning strategies.

Moreover, maintaining personal resilience ranks high on the agenda, with 30% of small business owners asserting that a good night's sleep significantly contributes to their resilience. Finding a balance between self-care and strategic business planning plays a critical role in their long-term success.

Resources and Support

KeyBank offers targeted assistance through its Certified Cash Flow Advisor Program, providing structured guidance tailored to help small business owners manage their financial challenges effectively. This program is designed to optimize operations and reinforce financial stability, which is more crucial now than ever.

In summary, small business owners are demonstrating a remarkable ability to adapt and plan for an uncertain future. With the right strategies and support, they can navigate surviving challenges while laying the groundwork for sustainable growth in the years ahead. As they face what could be a transformational period, it is clear that their dedication and innovative spirit will play pivotal roles in their ongoing success.

For further assistance and tailored support, visit KeyBank’s Small Business resource page.