Small Business Owners Cut Own Pay Amid Rising Costs, Survey Finds
A KeyBank survey finds one-third of small business owners have reduced their own income to offset inflation, yet 88% remain committed to their entrepreneurial vision.
One in three small business owners has cut their own salary to absorb escalating operating costs, according to a new survey from KeyBank released Sept. 30, 2026. Despite the financial strain, the vast majority of respondents — 88% — said they still believe in the founding vision that drove them to launch their businesses.
The findings underscore a widening tension between the practical hardships of running a small enterprise in an inflationary environment and the enduring optimism that defines American entrepreneurship. Business owners are effectively subsidizing their own operations through personal sacrifice rather than passing the full burden of higher costs onto customers or reducing staff.
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KeyBank's survey adds to a growing body of data showing that inflation continues to weigh disproportionately on smaller operators, who typically lack the pricing power and capital reserves available to larger corporations. For many, absorbing costs personally represents a short-term strategy to preserve customer relationships and workforce stability.
The resilience reflected in the survey numbers suggests that while financial pressure is real and measurable, it has not translated into widespread disillusionment. Entrepreneurs appear to be treating current difficulties as an obstacle to manage rather than a reason to exit, signaling that the small business sector may maintain its footprint even as macroeconomic headwinds persist.
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