Poll also found many are preparing for growth, including hiring

CLEVELAND , Nov. 14, 2024 /PRNewswire/ -- With the election now behind us, many business owners are planning for 2025. A recent KeyBank Small Business Flash Poll found 61% of respondents indicated they were likely to seek clarity and hold off on major business decisions until after the election, while only 12% said the election would have no impact on their 2025 planning. The poll also found business owners anticipate policy shifts will most affect areas such as:  

• Taxation (45%)
• Regulations (34%)
• Trade policies (31%)

Despite challenges posed by pre-election uncertainty surrounding anticipated policy changes, small business owners are preparing for growth, with nearly one-third (32%) expecting to expand their staff in 2025.

"Small business owners faced many challenges in 2024, including political uncertainty," said Mike Walters, President of Business Banking at KeyBank. "Despite challenges, they've displayed great resilience and patience navigating an election year. As they plan for 2025, it is important that they talk with their banker to develop strategies and explore solutions that can help them adapt to and persevere through potential policy shifts and changes."

KeyBank's recent Small Business Flash Poll also showed higher interest rates have impacted small business owners in many ways, including:

• 38% of respondents faced reduced profit margins
• 37% faced increased borrowing costs
• 31% have deferred capital investment due to high interest rates

At the same time, more than half of respondents (56%) expect interest rate changes to positively impact their businesses. The poll found they've adapted to the rate environment by increasing cash reserves (43%), reducing reliance on debt (37%), and diversifying funding sources (32%).

Methodology
This survey was conducted online by Survey Monkey, including 1,796 respondents, ages 18-99, located in the United States, who own or operate a small-to-medium size business with an annual gross revenue of less than $10 million, completed the survey in August 2024.

ABOUT KEYCORP
KeyCorp's (NYSE: KEY) roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $190 billion at September 30, 2024. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

CFMA #241111-2881834

This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice. Key.com is a federally registered service mark of KeyCorp. ©2024 KeyCorp

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SOURCE KeyBank