October 20, 2026
The survey, conducted by Small Business for America’s Future, found that 72% of respondents believe running a business has become more difficult over the past year,
Rising costs, declining consumer spending, and federal policy uncertainty are forcing small-business owners to cut their own pay and delay investments to stay afloat, according to a recent announcement.
Three out of four small-business owners say the current economy is among the most difficult of their careers, with many comparing the financial strain to the COVID-19 pandemic and Great Recession, according to a new national survey.
The survey, conducted by Small Business for America’s Future, found that 72% of respondents believe running a business has become more difficult over the past year, while 83% expressed concerns about their financial stability over the next 12 months.
The findings, based on responses from 1,171 small-business owners within the organization’s network, highlight mounting financial pressures as inflation, tariffs, and declining consumer spending continue to affect operations.
Among owners reporting worsening business conditions, 85% cited inflation and rising prices. Meanwhile, 78% of all respondents said higher costs have affected their ability to operate or expand.
Those challenges are also taking a personal financial toll. Nearly two-thirds of respondents, or 64%, reported reducing or skipping their own pay to keep their businesses running. Another 47% said their businesses no longer adequately cover their living expenses.
“To keep my business afloat, I invested my 401(k) savings and leveraged my home equity as collateral for additional capital, putting my family’s financial security on the line to sustain my business and employees,” said Gabe Hagen, founder of Brick Road Community Corporation, an Arizona-based coffee roasting company.
Federal policy uncertainty is further complicating business decisions. According to the survey, 67% of owners reported delaying, canceling, or reducing growth investments, while 57% scaled back hiring plans.
Tariffs have also contributed to financial pressures, with 59% of respondents saying the trade measures have made daily operating expenses harder to afford.
Consumer spending presents another challenge, as 46% of owners reported that their customers are spending significantly less.
The survey, conducted Aug. 13 through Oct. 5, also found that 78% of respondents believe Washington prioritizes the needs of large corporations over small businesses, reflecting broader concerns about the economic challenges facing Main Street.
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