By Jorge Antonio Vazquez Buendia
Sep 22, 2024, 08:00 AM EDT
A KeyBank Small Business Survey for Fall 2024 found that more than 3 in 5 (61%) small business owners surveyed plan to delay making major business decisions until after the election results are known, underscoring the significant impact the political environment can have on business strategy.
“Election years often bring heightened uncertainty for business owners, who must contend with potential policy changes that could significantly impact their operations,” the report notes.
As the political landscape evolves, many anticipate new regulations, tax changes and trade policies that could impact the future of their businesses.
Nearly half (45%) of small business owners surveyed anticipate tax changes will have the most significant impact on their businesses (up from 38% in the March 2024 KeyBank Small Business Survey), with other concerns about the regulatory environment (34%) and business policies (31%).
“Despite these concerns, small business owners remain resilient and are adjusting their business strategies to address potential policy changes that could impact their operations,” KeyBank’s report said.
The most common strategies include increasing cash reserves (38%), delaying major investments or expansions (36%) and diversifying product or service offerings (31%). As one of the leading indicators of the overall economic environment in the U.S., business owners’ financial resilience could signal improving economic conditions while financial challenges persist.
“The upcoming election adds uncertainty to an already volatile economic landscape, yet small business owners continue to demonstrate exceptional resilience,” said Mike Walters, president of business banking at KeyBank.
“Their strategic approach to navigating inflationary pressures, managing cash flow challenges and addressing changing market demands demonstrates a strong entrepreneurial spirit. This resilience not only positions them to withstand current market fluctuations, but also to persevere through potential policy changes, regardless of election outcomes,” Walters added.
To view the full report and its methodology, click here.
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