One in Three Small Business Owners Have Cut Their Own Pay as Revenue Falls and Costs Rise

One in three small business owners have personally taken a pay cut to keep their business running, according to a new survey of 192 U.S. small business owners by Omnisend, an ecommerce marketing platform serving over 150,000 brands.

The pressure is coming from both sides. Nearly four-in-ten (38.4%) small business owners report that revenue is down year over year, while 24% say their operating costs have increased by more than 20% in the past 12 months, suggesting that many businesses are earning less while spending more just to stay operational.

That pressure is changing how owners think about the year ahead. The survey found that 35.3% are now focused more on surviving than pursuing growth.

“For many small business owners, the business budget and personal budget are connected. If the business is short on cash, the owner often takes less home. That can work for a month or two, but it is not a long-term plan – and with nearly one in five owners considering closing or selling within the next 12 months, many are already running out of room,” says Marty Bauer, Ecommerce Expert at Omnisend.

Rising costs leave owners with fewer places to turn

The survey also reveals that small businesses are feeling the squeeze through the basic costs they deal with every day:

• 55.5% say shipping and freight costs are among the cost increases hitting their business hardest.
• 51.4% cite rising raw materials and supplies prices.
• 38.4% point to tariffs.
• 20.5% say energy and utility bills are having a major impact.

Overall, 73% of SMBs say world instability has noticeably impacted their operations. These costs are often the first place that instability shows up. Delays make shipping more expensive. Trade tensions make imports costlier. Higher fuel prices raise delivery and utility bills.

“Big companies usually have more ways to soften the blow when costs rise. They can renegotiate contracts, move production, or spread the cost across a larger operation. Small businesses often have fewer choices. If shipping, supplies, and energy all get more expensive at once, the owner has to decide whether to raise prices, cut costs, or take the hit personally,” says Bauer.