KeyBank Survey: Small Businesses Confident Despite Economic Challenges

A KeyBank survey finds 65% of small business owners are confident in funding operating expenses despite expecting inflation and cost increases. The survey highlights challenges faced by small businesses, including fluctuating sales and delayed payments.

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Nitish Verma
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KeyBank Survey: Small Businesses Confident Despite Economic Challenges

KeyBank Survey: Small Businesses Confident Despite Economic Challenges

The 2024 KeyBank Small Business Survey reveals that a significant majority of small business owners (65%) are confident in their ability to fund their operating expenses, despite expecting inflation and operating cost increases. However, the survey also highlights the challenges faced by these businesses, with fluctuating sales and delayed payments being the top concerns.

Why this matters: The confidence of small business owners is crucial for the overall health of the economy, as they are a significant source of job creation andGDP growth. If small businesses are able to navigate the current economic challenges, it could have a positive impact on the broader economy and job market.

Despite these challenges, the survey reveals a sense of optimism among small business owners, with a significant majority expressingconfidence in their financial management. This confidence is crucial for the growth and sustainability of small businesses, which are the backbone of the economy.

The survey's findings provide valuable insights into the current state of small businesses and their expectations for the future. As small businesses navigate the complexities of inflation, operating costs, and cash flow management, theirconfidence in funding operating expensesis a positive indicator of their resilience and adaptability.

Small businesses play a vital role in the US economy, with over 33 million operating across the country, employing over 61 million employees, nearly half of the entire American workforce. In 2023, a record-breaking 5.5 million new business applications were filed, highlighting the entrepreneurial spirit and optimism of Americans.

Mike Walters, President of Business Banking at KeyBank, acknowledges the challenges faced by small business owners, stating,"Running a business is not an easy task, and when coupled with uncertain economic conditions, rampant inflation and high interest rates, small business owners are faced with ambiguity. Their resilience is a testament to years of weathering financial uncertainty, and with their confidence remaining strong they're able to power through the last leg of inflation and keep themselves on track for economic growth. "The 2024 KeyBank Small Business Surveyunderscores the resilience and adaptability of small business owners in the face of economic challenges. Despite concerns about inflation and operating costs, their confidence in funding operating expenses and implementing precautionary measures demonstrates their commitment to weathering financial uncertainty and driving economic growth.