Small business owners aren't losing their dream, but they're paying more to achieve it
Freedom and autonomy defined success for 51% of surveyed owners, while 34% were building something to pass down to family.
Sentiment and the balance of points
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Rhea-AI Summary
KeyBank (KEY) released its 2026 Small Business Survey, showing owners absorbing rising costs while remaining motivated by their businesses.
33% of respondents cut their own income to offset rising costs, while 88% remained as motivated by their original business dream. Inflation and rising costs were cited as a threat by 53%, up from 50% in 2025. Meanwhile, 94% reported at least one accomplishment this year, including stable customer prices, improved efficiency or revenue growth.
Cash reserves improved for 23% of owners, and 26% paid down debt this year. 54% were certain reserves could cover one month of operating expenses, up from 33% in 2024. The share in survival mode fell to 17% from 23% in 2025, while 28% were actively investing for long-term growth, up from 22% in 2025. These findings describe surveyed business owners, not KeyBank's financial results.
AI-generated analysis. How Rhea-AI works. Not financial advice.
KeyBank survey shows one-third of small business owners have cut their own income to offset rising costs, yet
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
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:
"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
The good news: owners are actively rebuilding their financial position with
As compared to last year, fewer owners are in survival mode (
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 while34% are building something to pass down to family. - Financial stability and stewardship:
46% of owners cite financial security as a core measure of success and30% 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
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
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
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SOURCE KeyBank
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What did KeyBank's 2026 Small Business Survey find about rising costs?
33% of surveyed owners cut their own income to offset rising costs rather than passing them to customers. Inflation and rising costs remained a threat for 53% of respondents, up from 50% in 2025.
How was KeyBank's 2026 Small Business Survey conducted?
The survey was conducted online with Centiment in August 2026 among 1,500 small business owners across the United States. Participants were ages 18–99 and owned or operated a small-to-medium size business with annual gross revenue of less than $10 million.