Small businesses are gearing up for 2025 as a new administration takes office. Many owners are keeping a close eye on potential changes to taxes, regulations, and trade policies. A recent KeyBank Small Business Flash Poll found that 61% of respondents plan to seek clarity and hold off on major business decisions until after the election.
Only 12% said the election would have no impact on their 2025 planning. The poll also highlighted that business owners anticipate policy shifts to most affect areas such as taxation (45%), regulations (34%), and trade policies (31%). Despite the challenges posed by pre-election uncertainty, small business owners are preparing for growth.
Nearly one-third (32%) expect to expand their staff in 2025. Higher interest rates have impacted small businesses in many ways.
Small businesses eye 2025 policy changes
38% faced reduced profit margins, 37% faced increased borrowing costs, and 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 revealed they’ve adapted to the rate environment by increasing cash reserves (43%), reducing reliance on debt (37%), and diversifying funding sources (32%).
As small business owners 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. Banks are at a pivotal moment to help their business clients navigate cash flow and business operations concerns. Working with a trusted banker can ensure small business owners have the resources they need to prepare for whatever lies ahead.
The 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. The survey was completed in August 2024.
