Founders across the United States are feeling the pinch of rising expenses, but a recent Mercury survey reveals they are pressing on with optimism. The online survey, conducted in May 2026, polled 1,500 entrepreneurs who started companies within the past six years.
Unexpected cost spikes hit most founders
Seventy‑five percent of respondents reported that their operating costs were higher than anticipated, up from 66% a year earlier. No founder said costs were significantly lower than expected. Inflation was cited as a major factor, with 51% saying it negatively affected their businesses, compared with 36% in 2025.
How founders are responding
Only eight percent said they had made major strategic changes in response to the economic environment. Those who did adjust their approach typically altered pricing, increased cash reserves, switched suppliers, or postponed non‑essential investments.
Companies founded in the last six years are now holding, on average, 27% more cash on hand than they did in 2024, according to Mercury’s own data. This cash‑buffer strategy appears to be the most common playbook.
Pricing and staffing moves
When founders passed costs onto customers, 68% did so with modest price hikes of 5% to 10%, a range many consumers have already become accustomed to this year. Staffing decisions were less dramatic than headlines might suggest: while most firms reported healthy hiring, 12% said they had laid off or reduced staff due to higher operating costs.
Customer behavior and new opportunities
Ninety percent of founders observed shifts in customer behavior, whether driven by their own pricing changes, competitors’ moves, or broader economic trends. Some sectors, such as technology (28%) and manufacturing (26%), even reported larger contracts or orders despite the cost environment. Additionally, 28% said they attracted new customers when rivals raised prices.
Confidence and compensation
Despite the challenges, confidence remains high. Eighty‑four percent of respondents said their outlook for their business improved compared with the previous year. This confidence correlates with founder compensation: 81% of those with a more positive outlook pay themselves a market‑rate salary, versus only 56% of those whose confidence stagnated or declined.
Adoption of artificial intelligence also appears to boost compensation. Eighty percent of founders who have integrated AI into their operations pay themselves market‑rate salaries, compared with 57% of non‑AI adopters. Male founders reported higher market‑rate pay (82%) than female founders (63%).
Overall outlook
Higher costs have not forced founders into retreat; instead, they are exercising precision. Some modestly raise prices, others retain more cash, and many defer non‑essential investments while keeping teams largely intact. The entrepreneurial spirit remains resilient, and the majority believe they are on a solid path forward.
The survey’s findings are based on a May 2026 online sample of 1,500 U.S. adults who have started a company in the last six years. The sample was provided by research panel firm Sago. Percentages are rounded to whole numbers and may not total 100%.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
