Small Business Owners Cut Their Own Pay as Costs Keep Rising
A new KeyBank survey finds one-third of small business owners have slashed their own income to absorb rising costs, yet nearly nine in ten remain committed to their venture.
One-third of small business owners in the United States have reduced their own salaries to cope with persistent inflation and escalating operating expenses, according to a survey released by KeyBank. Despite that financial strain, 88% of respondents said they still believe in the core dream that motivated them to launch their businesses in the first place.
The findings, released Sept. 30, 2026, paint a picture of an entrepreneurial class under significant pressure but largely unwilling to abandon ship. Rather than closing their doors or dramatically scaling back operations, many owners appear to be absorbing losses personally — a strategy that sustains the business in the short term but may carry long-term risks to household financial stability.
Read more David Ellison Names Ynon Kreiz Co-CEO of Paramount-WBD Merged Company →
Rising costs have been a persistent headache for small businesses across virtually every sector, squeezing margins that were already thin for many independent operators. The KeyBank data suggests that owner compensation has become a de facto shock absorber, serving as a buffer between volatile input costs and the viability of the enterprise itself.
The resilience reflected in the survey underscores a broader theme in American small business culture: owners tend to have deep emotional and financial stakes in their companies, making exit a last resort. Analysts have noted that this loyalty can be both a strength — keeping businesses alive through downturns — and a vulnerability, as owners may delay seeking outside financing or restructuring until problems become acute.
Continue reading at Economic News, Trends, Analysis.
