Detroit City Wire

A recent survey conducted by KeyBank has revealed that 61 percent of small business owners are likely to delay major business decisions until after the upcoming election. Meanwhile, 12 percent indicated that the election would not influence their planning for 2025.

The KeyBank Small Business Flash Poll highlighted that anticipated policy changes could significantly impact taxation, regulations, and trade policies. Specifically, 45 percent of respondents expect taxation to be affected, while 34 percent foresee changes in regulations and 31 percent in trade policies.

Despite the uncertainty leading up to the election, nearly one-third (32 percent) of small business owners plan to expand their workforce in 2025. Mike Walters, president of Business Banking at KeyBank, commented on the resilience shown by these businesses during a challenging year. "Small business owners faced many challenges in 2024, including political uncertainty," he stated. "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."

The poll also examined how higher interest rates have impacted small businesses. It found that reduced profit margins were reported by 38 percent of respondents, increased borrowing costs by 37 percent, and deferred capital investment due to high rates by 31 percent. Nevertheless, more than half (56 percent) anticipate positive effects from future interest rate changes.

To cope with current interest rate conditions, businesses have increased cash reserves (43 percent), reduced reliance on debt (37 percent), and diversified funding sources (32 percent).

The survey was conducted online via Survey Monkey in August 2024 and included responses from 1,796 U.S.-based small-to-medium-sized business owners or operators with annual gross revenues under $10 million.

KeyBank operates multiple branches across Michigan and maintains a regional office center in Southfield. With origins dating back nearly two centuries to Albany, NY, KeyCorp is now headquartered in Cleveland and ranks among the largest bank-based financial services companies in the United States.

For further details about KeyBank's services and offerings, visit https://www.key.com/.