Kabbage 2025 Survey Reveals Half of Small Business Owners Still Forgo Paying Themselves, Now Grappling with AI and Automation Challenges
New data highlights ongoing cash flow struggles for small business owners, amplified by the pressures and opportunities of AI, automation, and the creator economy.
A recent survey by Kabbage, Inc. reveals that in 2025, despite advances in technology and financial tools, about 50% of small business owners continue to skip paying themselves for multiple consecutive months to maintain cash flow. This stubborn reality persists even as AI-driven automation and creator economy platforms reshape how entrepreneurs manage their businesses.
Among 500 surveyed entrepreneurs, 27% reported going two to six months without a paycheck, and 23% have gone more than six months unpaid. The personal toll remains high: 65% experience regular stress or anxiety linked to cash flow, 38% report sleep difficulties, and 40% say their social lives and hobbies suffer. Family life is impacted for 35% of respondents. Notably, these owners have been running their businesses for an average of 11 years, demonstrating resilience amid ongoing financial strain.
Kabbage CEO Rob Frohwein commented, “Cash flow has always been the lifeblood challenge for small businesses. While AI and automation tools have introduced efficiencies, many owners still face sleepless nights waiting on payments or managing expenses. Our mission is to leverage technology to ease these burdens so entrepreneurs can focus on innovation and growth.”
The survey also found that 92% of small business owners spend up to 18 hours per week on cash flow management tasks such as payroll, invoicing, and inventory procurement. However, many are now exploring AI-powered financial platforms and automation to reduce this workload.
If freed from cash flow management, respondents said they would repurpose their time as follows:
54% would invest more in sales and marketing to attract new customers, leveraging AI-driven analytics and targeted campaigns.
38% would develop new products and services, including digital offerings aligned with the creator economy.
35% would spend more quality time with family, friends, and community, addressing the personal sacrifices made.
33% would enhance customer service, often through AI chatbots and personalized engagement tools.
25% would focus on hiring and mentoring employees, integrating automation to boost team productivity.
28% would explore new technologies and business systems to improve operational efficiency, including AI and machine learning solutions.
Mark Van Duyne, president of Quality Home Products, shared, “Kabbage’s flexible funding and AI-enabled tools have been game changers. I no longer dread cash flow crunches or endless paperwork. This lets me focus on growing my business and adapting to the fast-changing market.”
As small businesses navigate the evolving landscape of AI, automation, and the creator economy, access to flexible capital and smart financial management tools remains critical. Kabbage continues to innovate, helping entrepreneurs reclaim their time and financial stability in 2025 and beyond.
Kevin "KevRoss" Ross is a music and radio industry expert. He is a 20 -plus year entrepreneur with the leading most successful industry trade publication and site Radio Facts (www.radiofacts.com). He has also published various books, magazines, performed marketing and promotions for major corporations and recording artists and he is on the advisory board of several industry organizations. This year Ross introduced his non profit organization LOMARI (Leaders of the Music and Recording Industry) to help teach young minority students how to market and manage their music and products.
