Nearly two-thirds of small business owners cut their own pay as costs rise

Rising costs, weaker consumer spending, and uncertainty over federal policy are pushing small-business owners to cut their own pay and put off investments just to stay afloat, according to a recent announcement. A new national survey found that three out of four small-business owners consider the current economy one of the toughest they have faced in their careers, with many saying the pressure feels similar to the COVID-19 pandemic and the Great Recession. The survey, conducted by Small Business for America’s Future, showed that 72% of respondents feel running a business has become more difficult over the past year, while 83% said they are worried about their financial stability over the next 12 months.

Based on responses from 1,171 small-business owners in the organization’s network, the findings point to growing financial strain as inflation, tariffs, and falling consumer spending continue to weigh on operations. Among owners who said conditions have worsened, 85% pointed to inflation and rising prices. Overall, 78% said higher costs have hurt their ability to operate or grow.

Those pressures are also affecting owners personally. Nearly two-thirds, or 64%, said they have reduced or skipped their own pay to keep their businesses going. Another 47% said their businesses no longer fully cover their living expenses.

“To keep my business afloat, I invested my 401 savings and leveraged my home equity as collateral for additional capital, putting my family’s financial security on the line to sustain my business and employees,” said Gabe Hagen, founder of Brick Road Community Corporation, an Arizona-based coffee roasting company. Uncertainty around federal policy is making business planning even harder. The survey found that 67% of owners have delayed, canceled, or reduced growth investments, while 57% have scaled back hiring plans.

Tariffs are adding to the strain as well, with 59% of respondents saying trade measures have made everyday operating costs harder to manage. Consumer spending remains another major concern, as 46% of owners said their customers are spending significantly less. Conducted from Aug.

13 through Oct. 5, the survey also found that 78% of respondents believe Washington is prioritizing large corporations over small businesses, underscoring wider worries about the economic challenges facing Main Street. RELATED CONTENT: How To Master The Art Of The Follow-Up