1 in 4 small business owners in ‘survival mode’

A nationwide bank recently highlighted the results of a survey that found small business owners are having a tough year.

On Sept. 16, KeyBank published its 2025 Small Business Survey that found 23% of 2,144 respondents from across the U.S., or one in four small businesses owners stated they are “stuck in survival mode and aren’t focused on long-term planning.” Also, 46% stated they felt business performance fell short of expectations this year.

However, 40% of respondents stated they are “cautiously” planning for the future, and 46% stated with certainty that they could cover costs for a month if faced with an unexpected emergency.

Nearly three-quarters of those surveyed, 72%, have concerns with legislative changes coming in the last months of the year.

According to the results of the survey, “50% of small business owners say their top concern is inflation and rising costs — far outpacing factors like competition (33%), cash flow (25%) and labor shortages and hiring challenges (22%). In fact, a quarter (25%) of small business owners are increasing prices for customers in light of recent tariffs and rising costs. Cybersecurity also remains a key issue for small business owners, with 41% citing payment fraud as their top concern, followed by phishing and email scams (27%) and identity theft (26%).”

Mike Walters, president of business banking at KeyBank, stated that small businesses have their work cut out for them navigating the current economic climate.

“It’s reassuring to see small business owners’ passion and perseverance, despite the challenges that have come their way,” he said. “Their ability to adapt ― whether through tightening expenses, finding new ways to serve customers, or preparing for regulatory shifts ― shows the grit and creativity at the heart of the small business community. It’s that determination that allows them to build the foundation needed for long-term growth.”

To tackle the challenges, small business owners said they are prioritizing what strategies and resources they’ll need and are focusing on self-care as well. That includes speaking with their business bankers on cash-flow guidance, financial planning and tax strategies.

“Small business owners are proving that resilience is more than just surviving challenges; it’s about planning ahead, leaning on trusted advisors, and making sure they have the clarity and confidence to move forward,” Walters said.

The full report can be found at