Small Business Owners Cut Personal Pay Amid Rising Costs, Survey Finds
A KeyBank survey finds one-third of small business owners have slashed their own income to cope with inflation, yet nearly 9 in 10 remain committed to their venture.
One in three small business owners in the United States has reduced their own salary to absorb rising operational costs, according to a survey released by KeyBank on Sept. 30, 2026. Despite the financial strain, 88% of respondents said they still believe in the founding vision that led them to start their business.
The findings underscore a persistent tension facing Main Street entrepreneurs: inflation and elevated expenses are forcing difficult personal sacrifices, even as owners maintain long-term confidence in their enterprises. The willingness to absorb losses personally rather than close or downsize speaks to the resilience — and risk — embedded in small business ownership.
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The KeyBank data reflects a broader national pattern in which small business owners frequently function as the last line of financial defense for their companies, drawing down personal compensation before cutting staff or shuttering operations. That approach can sustain a business through a rough patch, but it also concentrates economic risk on individual households.
Analysts note that sustained cost pressure without revenue relief could eventually erode even the most optimistic entrepreneurs' ability to stay solvent, making access to credit and financial planning tools increasingly critical for this segment. The survey results highlight both the durability of the entrepreneurial mindset and the mounting structural challenges that test it.
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