The National Federation of Independent Business (NFIB) has released the 11th edition of its “Small Business Problems and Priorities” report. This survey, established in 1982, is published every four years by the NFIB Research Center and provides an extensive analysis of 75 issues affecting small businesses across the nation.
Holly Wade, Executive Director of the NFIB Research Center, emphasized the challenges faced by small businesses due to inflation, tax pressures, and economic uncertainties. She remarked, “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… 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.”
The report highlights several significant issues for businesses in North Dakota, according to NFIB State Director Don Larson. The rising cost of supplies, health insurance, and other expenses, combined with tax challenges, constitute major concerns. Larson stated, “Small business owners in North Dakota are facing significant challenges, as highlighted in the recent NFIB report. The survey of small business owners reveals that skyrocketing costs, tax issues, and economic uncertainty are among the top concerns.”
The report underscores that since 1986, the “Cost of Health Insurance” remains the top concern. The “Cost of Supplies/Inventories” has risen to second place due to inflation, with the proportion of owners identifying it as a critical issue growing from 9% in 2020 to 20% in 2024. Fuel and electricity costs are also significant concerns. Furthermore, interest rates have dramatically climbed in importance, now ranking 13th.
Tax-related issues feature prominently, with “Federal Taxes on Business Income” being the most severe tax concern, ranking fourth. Twenty-five percent of business owners regard this as a critical problem, especially if the Small Business Deduction expires in 2025. “State Taxes on Business Income” ranks as the second most severe tax issue.
Economic uncertainty has also heightened, with “Uncertainty over Economic Conditions” ranking as the third most severe problem, up from ninth in 2020. “Uncertainty over Government Actions” is another pressing issue, as is “Locating Qualified Employees,” ranked fifth.
NFIB’s findings are based on responses from 2,873 small business owners who participated in a survey conducted between February and mid-April 2024. The results aim to guide lawmakers in addressing the most critical issues faced by small businesses.
