New NFIB Survey Reveals Top Concerns for Small Businesses: Inflation, Taxes, and Uncertainty Top the List

The National Federation of Independent Business (NFIB) has released the 11th edition of its four-year report, Small Business Issues and Issueswhich provides a detailed analysis of the challenges facing small business owners across the United States. This year’s report, based on a national survey of 2,873 small business owners conducted from February to mid-April 2024, highlights the key pressures small businesses continue to face, as inflation, tax burdens, and uncertainty top the list of concerns.

Cost Pressures Dominate Concerns

Here is a list of the top problems identified by small business owners, according to the NFIB report:

• Health Insurance Costs: In keeping with trends since 1986, “Health Insurance Costs” remains a perennial issue for small business owners.
• Cost of Goods/Materials: Ranked 2nd in 2024, this issue has grown in importance due to recent inflation, rising from 12th in 2020. The percentage of owners citing it as a serious problem more than doubled from 9% in 2020 to 20% in 2024.
• Fuel and Electricity Costs: “Costs of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil” is now the 6th most pressing problem, and nearly 25% of respondents identified it as critical. Similarly, “Electricity costs” ranked 10th, with 16% of owners citing it as a critical issue.
• Interest rates: Growing significantly in importance, “Interest Rates” jumped from 56 in 2020 to 13 in 2024, reflecting the impact of rising borrowing costs on small businesses.

Tax Issues Are Always in the Spotlight

• State Taxes on Business Profits: Ranked 4th, this is still the most difficult tax-related issue for small businesses. A quarter of owners report it as a serious problem, an increase of 5 points from 2020.
• State Taxes on Business Profits: Ranked 7th, with 22% of respondents citing it as a serious concern, up from 19% four years ago.

Uncertainty and Labor Challenges

• Economic Uncertainty and Government: “Uncertainty About Economic Conditions” rose from 9th in 2020 to 3rd in 2024, and 22% of small business owners consider it a serious issue. “Uncertainty about Government Actions” ranked 8th, important to 23% of respondents.
• Finding the Right Employees: Labor challenges continue to be a major issue, ranked 5th, with 28% of owners finding it critical.

Implications for Policy Makers

Holly Wade, Executive Director of the NFIB Research Center, emphasized the importance of understanding these challenges as policymakers at both the state and federal levels consider legislation affecting small businesses. “This study helps the public to understand things that affect the small business sector. “Small businesses employ nearly half of the private sector workforce, and this publication clarifies where lawmakers should focus their attention to strengthen Main Street and the entire community in which they serve,” said Wade.

The NFIB report provides important insights into the priorities of small business owners, providing guidance to policymakers in developing policies that support small businesses that address the most important concerns identified in the survey.