KeyBank Survey Finds Owners Absorbing Rising Costs

KeyBank has released its 2026 Small Business Survey, finding that 33% of small business owners have cut their own income to absorb rising costs rather than raise prices for customers. Inflation and rising costs were cited as a dominant threat by 53% of respondents, yet 88% said they remain motivated by the original dream behind their business. The survey also found that 94% reported at least one accomplishment in the past year, while 54% said they could cover one month of operating expenses with cash reserves. The online survey included 1,500 US small business owners who own or operate businesses with annual gross revenue below $10 million.

Owners Report Progress Despite Costs

The KeyBank 2026 Small Business Survey found that 79% of respondents reported two or more accomplishments during the year, and 62% reported three or more. Owners listed keeping prices stable, improving operating efficiency, sustaining their current customer base, adding products or services, and growing revenue year over year among their accomplishments.

“Resilience is at the heart of every successful small business story. Behind each small business is an owner who has persevered through financial uncertainty and stayed committed to their customers and their dream. Their determination strengthens communities, powers our economy, and creates opportunities for the entrepreneurs who follow in their footsteps.”

Cash Reserves Show Improvement

Inflation and rising costs remained the most commonly cited threat, identified by 53% of owners, compared with 50% in 2025. At the same time, 23% said they had strengthened cash reserves and 26% had paid down debt.

The share of owners certain they could cover one month of operating expenses from cash reserves alone reached 54%, up from 33% in 2024. Seventeen percent described themselves as in survival mode, down from 23% in 2025, while 28% said they were investing for long-term growth, up from 22% last year.

Success Beyond The Balance Sheet

The findings point to a wider view of success among owners. Freedom and autonomy were identified by 51% as a measure of success, while 46% cited financial security. Thirty-four percent said they were building something to pass down to family, and 30% focused on providing good jobs for employees.

“The findings in this survey reinforce what we've long known: small business owners are among the most resilient and determined leaders in our economy. They navigate uncertainty, seize opportunities and work tirelessly to turn their dreams into reality. At KeyBank, we're committed to helping these entrepreneurs achieve lasting success, strengthen their communities and create a legacy that endures for generations.”

Business Banking Resources

KeyBank offers deposit, lending, cash management, and investment services for individuals and businesses. Its Small Business site provides resources, insights, and financial advice for business owners, while local business banking advisors are available through a KeyBank branch.

The online survey was conducted with Centiment in August 2026 and included small business owners ages 18 to 99 from across the United States.