ECNETNews reports that the National Federation of Independent Business (NFIB) has unveiled its 11th edition of the essential report, Small Business Problems and Priorities, shedding light on the ongoing challenges faced by small business owners throughout the United States. This report is derived from a robust nationwide survey conducted among 2,873 small business owners from February to mid-April 2024, revealing significant stresses that continue to burden these enterprises, including inflation, tax pressures, and ongoing uncertainties.
Major Concerns for Small Business Owners
The report outlines crucial concerns that small business owners currently prioritize:
- Health Insurance Costs: Continuing a trend since 1986, the “Cost of Health Insurance” firmly holds its position as the foremost chronic issue impacting small business owners.
- Supplies and Inventory Costs: This concern has escalated, now ranking 2nd in 2024, attributed largely to recent inflation, spiking from its previous 12th position in 2020. The percentage of owners citing this as a critical issue has more than doubled, increasing from 9% in 2020 to 20% in 2024.
- Fuel and Electricity Costs: The rising “Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil” now stands as the 6th most pressing issue, with nearly 25% of respondents identifying it as critical. Concurrently, “Electricity Costs” rank 10th, impacting 16% of owners.
- Interest Rates: This concern has seen a dramatic increase in significance, moving from 56th in 2020 to 13th in 2024, reflecting how rising borrowing costs are affecting small businesses.
Continued Emphasis on Tax Issues
- Federal Business Income Taxes: Ranking 4th overall, this remains the most significant tax-oriented issue for small businesses, with a quarter of owners categorizing it as critical, marking a 5-point increase from 2020.
- State Business Income Taxes: This concern ranks 7th, with 22% of survey respondents identifying it as a critical issue, up from 19% four years ago.
Uncertainty and Workforce Challenges Persist
- Economic and Government Uncertainty: Concerns about “Economic Conditions” have grown, rising from 9th in 2020 to 3rd in 2024, with 22% of small business owners considering it critical. Additionally, “Government Action Uncertainty” ranks 8th, cited by 23% of respondents as critical.
- Finding Qualified Employees: Workforce issues remain a major challenge, ranking 5th overall, with 28% of owners deeming it critical.
Insights for Policymakers
The NFIB report underscores the pressing challenges that small businesses face, providing essential insights for policymakers at both state and federal levels as they consider impactful legislation. The survey serves as a valuable resource for the public, revealing critical issues that directly affect small businesses, which employ nearly half of the private sector workforce. This guidance outlines the areas lawmakers should prioritize to bolster Main Street and support the local communities where these businesses operate.
