The Sconi

The National Federation of Independent Business (NFIB) has unveiled the latest edition of its quadrennial report, "Small Business Problems and Priorities." Since its inception in 1982, the report, produced by the NFIB Research Center, has provided insights into the challenges faced by small business owners across the United States. The 2024 report is derived from responses to a survey conducted by small business owners, offering an analysis of 75 distinct issues impacting Main Street.

Holly Wade, the Executive Director of the NFIB Research Center, emphasized the persistent difficulties encountered by small business owners over the last four years. “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,” Wade stated. Highlighting the report's importance, she noted, “This survey helps the public understand the issues affecting the small business sector.”

Bill G. Smith, NFIB State Director, echoed these sentiments, stressing the need for legislative intervention. He remarked, ”Small businesses continue to struggle with historic inflation, tax pressures, and uncertainty, which have significant implications for Main Street businesses and our local communities.”

One of the report's significant findings focuses on cost pressures. The cost of health insurance remains the primary concern, unchanged since 1986. Historic inflation has increased the cost of supplies, now ranking as the second most critical issue, up from 12th in 2020. Additionally, over 20% of respondents have identified the "Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil" as a severe problem, with electricity costs and interest rates also causing concern.

Tax-related issues feature prominently in the report, with "Federal Taxes on Business Income" ranking as the fourth biggest problem, down from the previous survey. The possibility of the Small Business Deduction lapsing at the end of 2025 could worsen these tax issues.

Also, the report highlights uncertainty as a dominating concern. "Uncertainty over Economic Conditions" and "Uncertainty over Government Actions" have risen in importance and are cited as substantial problems. Finding qualified employees remains a considerable challenge for business owners.

This publication aims to inform governmental bodies at the state and federal levels of the pressing issues small businesses face, guiding legislative priorities. The report is based on responses from 2,873 NFIB small business members, surveyed between February and mid-April 2024, who evaluated the severity of potential business issues.