The National Federation of Independent Business (NFIB) released the 11th edition of its quadrennial report: Small Business Problems and Priorities.
First published in 1982, the report is issued every four years by the NFIB Research Center and is based on a nationwide survey of small-business owners, providing a comprehensive guide to 75 issues and their impact on Main Street.
“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,” Holly Wade, executive director of the NFIB Research Center, said in a release. “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.”
Key cost pressure findings include:
- Unchanged since 1986, the cost of health insurance remained the number one chronic issue for small-business owners.
- The cost of supplies/inventories moved up in importance from ranking 12th in 2020 to its current second-place ranking, which NFIB said is aa direct result of historic inflation over the last two years. The percentage of owners who find it a critical problem increased from 9 percent in 2020 to 20 percent in 2024.
- The cost of natural gas, propane, gasoline, diesel and fuel oil was “the sixth most severe problem cited by small-business owners. Nearly one-in-four reported it as critical.
- Electricity costs rankedw 10th in 2024 and was reported critical by 16 percent.
- Interest rates rose 43 positions from a rank of 56th in 2020 to 13th in 2024.
Tax-related problems
- The most severely ranked tax problem was federal taxes on business income. It ranked fourth, down one position from 2020. The Tax Cuts and Jobs Act benefited most small businesses but many still found their federal tax burden a critical problem. A quarter of small business owners think it is a critical problem, 5 points higher than four years ago.
- State taxes on business income,” ranked as the second-most severe tax issue. Twenty-two percent reported it as critical, up from 19 percent four years ago.
Uncertainty concerns
- Small business owners ranked “uncertainty over economic conditions” as the third most severe problem facing their business, up from its ranking of ninth in 2020. Twenty-two percent of small business owners reported it as critical.
- “Locating qualified employees” ranked fifth and is critical for 28 percent.
- “Uncertainty over government actions” ranked eighth and is critical for 23 percent.
To download NFIB’s 2024 Small Business Problems and Priorities report, click here.