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%).

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.