Small business owners aren't losing their dream, but they're paying more to achieve it

KeyBank survey shows one-third of small business owners have cut their own income to offset rising costs, yet 88% still believe in the dream that started their business

CLEVELAND, Sept. 30, 2026 /PRNewswire/ -- Small business owners are continuing to combat inflation and rising costs, according to the newly released KeyBank (NYSE: KEY) 2026 Small Business Survey. The survey found that one-third (33%) of owners are absorbing rising costs out of their own paycheck rather than passing them on to customers underscoring the value they place on the relationships they've built.

Still, their resolve hasn't wavered and they are generating success even amid economic hardship. Nearly every small business owner can point to a tangible win this year - with 94% of owners claiming they made one accomplishment this year, 79% saying two or more and nearly two-thirds (62%) stating three or more in the past year.

Owners described their accomplishments as: keeping prices stable for customers, improving operating efficiency, sustaining their current customer base, adding new products or services, or growing revenue year over year.

The findings underscore the small businesses owners momentum and passion: 88% of owners say they are just as motivated by the original dream that started their business.

"Resilience is at the heart of every successful small business story," said Oliver Kardos, COO of Business Banking at KeyBank. "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."

Inflation Pressure Continues, Cash Flow Improves

Inflation and rising costs remain a dominant threat for the second year running cited by 53% of owners (up from 50% in 2025).

The good news: owners are actively rebuilding their financial position with 23% saying they strengthened cash reserves and 26% saying they paid down debt this year. More than half (54%) of owners are certain they could fund one month of operating expenses from cash reserves alone (up from 33% in 2024).

As compared to last year, fewer owners are in survival mode (17%, down from 23% in 2025) and 28% are actively investing for long-term growth, an increase from 2025 (22%).

Defining and Achieving Success

For small business owners success can be found outside of the balance sheet shaped by a mix of independence, security, and legacy that fuels their resilience even in a challenging economic climate.

• Independence and legacy: 51% of small business owners say freedom and autonomy define success while 34% are building something to pass down to family.
• Financial stability and stewardship: 46% of owners cite financial security as a core measure of success and 30% are focused on providing good jobs for their 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," said Kardos.

At Key it's our mission to ensure clients have access to the resources, insights, and financial advice so they can navigate whatever comes their way. For additional insights and resources to help your business visit KeyBank Small Business or connect with your local business banking advisors at a KeyBank branch near you.

Methodology
This survey was conducted online in August 2026 with Centiment and included 1,500 small business owners ages 18-99 from across the United States who own or operate a small-to-medium size business with an annual gross revenue of less than $10 million.

ABOUT KEYCORP
KeyCorp's roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $191 billion at June 30, 2026. 

Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

CFMA: 260921-5015828

SOURCE KeyBank