New York, NY – Small business owners stand at a crossroads, waiting for the election winds to blow before charting their next course. More than three in five entrepreneurs have chosen to delay crucial decisions until the 2024 election results are clear, a moment when the future of their businesses could be redefined. The impact of elections on small businesses echoes through every boardroom, storefront, and home office, as uncertainty looms large.
The KeyBank small business survey reveals that 61% of owners are holding back on major moves—decisions that could expand their businesses or shift their strategies. At the heart of this hesitation is the unknown, particularly around tax changes, business regulations, and the shifting landscape of trade policies.
Business Owners Bracing for Policy Changes
Small business owners know too well that elections are more than just a political event—they are moments when the rules of the game can shift entirely. Many owners are preparing for potential disruptions in the wake of new tax laws and regulations that could reshape how they operate.
The survey shows that 45% of small businesses are most concerned about tax changes, a notable increase from 38% earlier in 2024. “The fear is real,” says Mike Walters, president of business banking at KeyBank. “Taxes can change the whole equation for a small business, affecting everything from pricing to payroll.”
In addition to tax concerns, 34% of business owners worry about a tighter regulatory environment, while 31% brace for disruptions in trade policies. These changes could have a profound impact on industries ranging from manufacturing to retail, as small businesses often operate with slimmer margins and less cushion for unexpected changes.
Resilience in the Face of Uncertainty
Small businesses are not simply waiting idly by. There is a quiet resilience among them, a belief that they can weather whatever comes their way. 38% of owners are preparing for the unknown by increasing cash reserves, knowing that liquidity may be their greatest asset in uncertain times. “It’s about survival,” says one small business owner. “We’re not just waiting—we’re getting ready.”
Many are also putting off major decisions such as expansion or large investments, with 36% of businesses opting to delay these moves until the political landscape becomes clearer. 31% are actively diversifying their products or services, ensuring they can adapt quickly to changes in the market, no matter what form they take.
This adaptability is what has always kept small businesses alive through challenging times. Mike Walters notes: “It’s remarkable how small businesses continue to adjust, finding ways to survive and even thrive in the face of challenges like inflation, cash flow constraints, and shifting market demands.”
Looking to the Future with Cautious Optimism
As 2024 election day approaches, small business owners remain hopeful, even in the face of uncertainty. They have always been the backbone of the economy, the embodiment of entrepreneurial spirit and determination. While the future remains unclear, one thing is certain: they will adapt and persevere.
Whether taxes increase, regulations tighten, or trade policies shift, these business owners will continue to adjust, proving once again that resilience is not just a strategy—it’s a way of life. “The election may bring change,” Walters reflects, “but small businesses will find their way, as they always do.”
