A KeyBank survey highlighted by Talk Business & Politics shows that small business owners are still feeling the pinch of rising expenses, with many focused on staying afloat rather than planning for growth. Nearly a quarter of respondents (23%) described their businesses as being in “survival mode,” while half said inflation remains their single biggest challenge. Other worries included cash flow problems, labor shortages, and competition.
To cope, some entrepreneurs are raising prices, with about one in four reporting that they’ve passed higher costs along to customers. At the same time, 72% expressed concern about the impact of upcoming federal legislation, though 80% still felt confident in their ability to make sound business decisions despite the uncertainty.
The survey also pointed to profitability pressures and limited financial cushions. Almost half of owners said performance fell short of expectations this year, and many indicated they could only cover about a month’s operating expenses if faced with an emergency. Cybersecurity risks—such as payment fraud, phishing, and identity theft—were also flagged as significant concerns.
Although some businesses noted modest gains in customer foot traffic compared to last year, the report found that the average transaction size fell in August, suggesting that consumers are spending less per purchase even when visits increase.