Two reports released this week by the National Federation of Independent Business (NFIB) highlight ongoing challenges faced by small businesses in the United States. The reports, which focus on economic trends and business priorities, underline inflation and health care costs as significant concerns for small enterprises.
Suzanne Budge, Idaho state director for NFIB, emphasized the importance of these findings. “Our Small Business Problems & Priorities report, which we produce every four years, ranks the 75 issues, or more accurately, struggles that small business owners encounter in opening an enterprise and keeping it running,” she stated. This report was released shortly after NFIB’s monthly Small Business Economic Trends report. Both documents identify inflation as a pressing issue, with health care costs maintaining their position as the top concern for 38 consecutive years.
Budge advised policymakers to consider these insights when shaping policies affecting small businesses. “I recommend everyone holding elective office or running for one acquaint themselves with the Small Business Problems & Priorities report,” she said.
The Problems & Priorities report reveals that since 1986, “Cost of Health Insurance” has remained the primary issue for small business owners. Meanwhile, “Cost of Supplies/Inventories” has climbed from 12th place in 2020 to second place due to recent inflationary pressures. Additionally, “Interest Rates” have surged from 56th place in 2020 to 13th place in 2024.
Holly Wade, Executive Director of the NFIB Research Center, commented on these challenges: “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.” She stressed that understanding these issues is crucial for lawmakers aiming to support Main Street businesses.
The latest Small Business Economic Trends report indicates that inflation remains a critical concern among small business owners. Twenty-five percent reported it as their most significant problem in July. Furthermore, job openings remain unfilled at a high rate—38% seasonally adjusted—and compensation increases have slowed.
Bill Dunkelberg, NFIB Chief Economist, noted ongoing cost pressures: “Cost pressures, especially labor costs, continue to plague small business operations.” He warned of uncertain months ahead due to unpredictable economic conditions and government policies.
NFIB’s research is based on surveys of its member businesses across various states. The average NFIB-member business employs between five and nine people.
NFIB has been advocating for small businesses nationwide since its founding in 1943. For more information about their work and latest updates on Idaho’s small-business news visit www.nfib.com/idaho or follow them on Twitter @NFIB_ID.
