Poll: Small Businesses Straining Under Rising Costs

Washington, D.C.— Most small businesses say their expenses increased while nearly half of small firms saw their revenue decline over the past three months, according to a new survey.

Voice of Main Street, a quarterly opinion poll of entrepreneurs in Small Business Majority’s network, which consists primarily of women- and minority-owned businesses with fewer than 10 employees, finds nearly two-thirds (64%) of small business owners say business expenses have risen over the past three months while only 9% report they have decreased. Meanwhile, nearly half (47%) of small businesses say revenue has declined over the same period. 

Diving deeper, the poll finds small businesses facing a number of financial challenges that are limiting their growth potential: 54% of small business owners say increased costs of supplies and inventory are a major challenge facing their business, while 52% cite reduced consumer spending as a major concern. Additionally, 43% of small businesses report major difficulty making payroll.  

Many of these challenges can be traced back to tariffs. Thirty percent of small businesses say they have paid tariffs on imports for their businesses. Of those impacted directly by tariffs, more than half (53%) are facing increased costs from their suppliers, 47% have increased the price of certain materials or products, 24% have delayed importing goods or materials, 26% have delayed business expansion plans, 19% have delayed hiring new employees, 15% have changed their business model and/or product offerings, 13% have sought suppliers in other countries where there is less tariff impact, and 7% have laid off workers and/or reduced their hours.

“I had a retail business but tariffs forced me to close it,” said Rochelle Smith, former owner of Elitetress Beauty in Katy, Texas. “All of my products were made with supplies and ingredients from China, so after tariffs were put in place I couldn’t afford to make my own products anymore. I’ve had to pivot to starting a new business as a life coach to escape the impact of tariffs.” 

Healthcare costs are also a significant contributor to growing operating expenses for small firms. Nearly three-quarters (71%) of small business owners say that their healthcare premiums have increased over the past year. Just 2% report that their healthcare costs have decreased. 

An additional area of concern for small business owners is fair competition: More than two-thirds (67%) agree the federal government is not doing enough to regulate monopolies, and 1 in 4 report there is a monopoly in their industry. What’s more, 65% believe their state should strengthen its anti-monopoly laws and enforcement. 

“Small businesses today are facing a perfect storm of challenges that are impacting not just their profitability but their survival,” said Small Business Majority Senior Director of Federal Government Affairs Alexis D’Amato Falvey. “Policymakers must do more to support America’s job creators, and that includes bringing down the cost of healthcare, making it easier for small businesses to secure loans, ending tariffs and enforcing antitrust laws. If nothing is done, we may soon see a mass extinction on Main Street.”

The fifth Voice of Main Street survey is a poll of 247 small business owners in Small Business Majority’s national network. Thirty-eight percent of respondents in the sample report business revenues of less than $100,000 while 55% identify as female and 45% identify as a race other than white. The survey was conducted Jan. 23 to March 5, 2026. The margin of error is +/- 6% at a 95% confidence level.