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Small Business Owners Persevere Through Economic Challenges

The resilience of small business owners shines through even amidst economic difficulties. According to KeyBank’s recently released 2026 Small Business Survey, a significant number of these entrepreneurs continue to battle inflation and escalating costs while maintaining their commitment to their original dreams. Nearly a third of the respondents disclosed they have opted to reduce their own income rather than increase prices for their customers, highlighting the importance they place on customer relationships.

The Current Economic Landscape

With rising inflation and costs having an impact for the second consecutive year, 53% of small business owners identified these factors as their main concerns. This statistic marks a rise from 50% in the previous year. Despite these challenges, many owners are actively working to restore their financial stability: 23% reported enhancing their cash reserves and 26% noted they have been successful in repaying debts.

A positive trend was also identified, where more than half (54%) of the surveyed owners expressed confidence in their ability to cover at least one month of operating expenses using their cash reserves alone—an increase from 33% in 2024. It seems that fewer owners are functioning in survival mode; only 17% reported being in such a position, a decrease from 23% in 2025. Excitingly, there’s a noticeable shift with 28% actively investing for long-term growth, up from 22% a year earlier.

Moments of Success in Tough Times

Success for small business owners transcends profit margins and balance sheets; it is intertwined with their sense of independence, security, and legacy. The survey findings paint a hopeful picture: 94% of respondents identified at least one significant accomplishment in the past year.

• - 51% indicated that freedom and autonomy were central to their perception of success, with 34% aiming to create legacies for future generations.
• - 46% cited financial security as a key measure of success, while 30% emphasized the importance of providing good jobs for their workforce.

This narrative of perseverance and dedication is a hallmark of the small business landscape. Oliver Kardos, COO of Business Banking at KeyBank, remarked, "Behind each small business is an owner who has persevered through financial uncertainty, committed to their customers, and dedicated to their dreams. Their determination not only strengthens local communities but also powers the broader economy and opens doors for future entrepreneurs."

Conclusion

Amidst inflation and rising costs, the spirit of small business ownership remains vibrant. Entrepreneurs are not just surviving; many are actively pursuing growth and securing their place in the market. KeyBank stands committed to providing resources, insights, and financial advice to support these resilient business leaders who continue to embody the essence of American entrepreneurship. As they push through and adapt to changing economic landscapes, small business owners remain a vital force, shaping their communities and demonstrating unwavering resolve.

For further information and resources aimed at bolstering small businesses, visit KeyBank's Small Business page or connect with local business banking advisors directly at a nearby KeyBank branch.