The National Federation of Independent Business (NFIB) released its most recent report, Small Business Problems and Priorities, which is a nationwide survey of small business owners (nearly 2,900 in 2024) assessing the impact of 75 key data points. The survey has been published every four years since 1982, the most recent of which was published at the start of the pandemic in 2020.
According to the report summary: “The purpose of this publication is to offer a better understanding of which issues are most critical and of least importance for small business owners. This report will help state and federal lawmakers prioritize pro-small business legislation in the years ahead.”
Of the top concerns, “Cost of Health Insurance” has reigned as the number one issue since 1986. Rounding out the top 10 include “Cost of Supplies/Inventories,” “Uncertainty of Government Actions.” “Federal Taxes on Business Income,” “Locating Qualified Employees,” “Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil,” “Unreasonable Government Regulations,” “Uncertainty over Government Actions,” “State Taxes on Business Income,” and “Electricity Costs (rates).”
Regarding the federal tax burden, of concern is the Small Business Deduction that is set to expire in 2025 and could result in a costly tax hike on small businesses. As such, the organization has been lobbying Congress for the so-called Main Street Certainty Act, which would make the 20 percent tax cut permanent. Click here for more information or to sign the petition.
“Interest Rates” was the biggest mover on this report, shuffling up to the 13th spot this year from the 56th in 2020. The near-zero interest rates of 2020 have been increased numerous times in the past four years to a 23-year high in an attempt to curb rapidly rising inflation, although Federal Reserve Chairman Jerome Powell has hinted that rates may drop as soon as September as inflation is seemingly under control.
NFIB Research Center Executive Director Holly Wade
“For the last four years, small business owners have struggled with historic inflation, tax pressures at all levels of government, and uncertainty of what’s going to happen next,” wrote NFIB Research Center Executive Director of the Holly Wade in the report. “This survey helps the public understand the issues affecting the small business sector. Small businesses employ nearly half of the private sector workforce, and this publication makes clear where lawmakers should focus their attention to strengthen Main Street and every community in which they operate. Despite the headwinds and economic challenges, small business owners are working hard to create new jobs and grow their businesses, but the threat of rising costs, taxes, and uncertainty gives Main Street pause.”
To download the full report, click here.
Visit nfib.com for more information.
[08.20.24]