Study conducted every four years examines 75 critical issues for small business owners

LINCOLN, NE, (August 14, 2024) – The National Federation of Independent Businesses (NFIB) has published the 11th edition of its quadrennial report: Problems and priorities of small businesses. First published in 1982, this report is published every four years by the NFIB Research Center. The 2024 report is based on a nationwide survey of small business owners and provides a comprehensive guide to 75 topics and their impact on Main Street.

“Over the past four years, small business owners have struggled with historic inflation, fiscal pressures at all levels of government and uncertainty about what will happen next,” said Holly Wade, executive director of the NFIB Research Center. “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 release makes clear where lawmakers should focus their attention to strengthen Main Street and every community they serve. Despite 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 is giving Main Street pause for thought.”

“The NFIB report highlights the significant challenges facing small business owners in Nebraska,” said NFIB Country Director Ryan McIntosh“Rising costs, tax burdens and economic uncertainty underscore the need for legislative action to support small businesses. We must address these challenges to strengthen Main Street and promote economic growth across the Cornhusker State.”

Key findings include:

• Unchanged since 1986, the “costs of health insurance” are the Number One chronic problem for small business owners.
• The importance of “cost of deliveries/inventories” rose from 12th place in 2020 to its current second place – a direct result of the historic inflation of the last two years.

– The proportion of owners who see the problem as critical rose from 9 percent in
2020 to 20 percent in 2024.

• The “cost of natural gas, propane, gasoline, diesel and heating oil” is the sixth biggest problem cited by small business owners, with nearly one in four saying it is critical.
• Likewise, “electricity costs (tariffs)” are a top issue for small businesses: they rank 10th in 2024 and are rated as critical by 16 percent.
• Becoming increasingly important from 2020, “Interest rates” topped the list, rising 43 positions from 56th in 2020 to 13th in 2024.

• The most serious tax problem is “federal taxes on corporate income.” It ranks fourth, one position below its 2020 ranking. Most small businesses benefited from the Tax Cuts and Jobs Act, but for many, the federal tax burden is still a major problem.
  • A quarter of small business owners consider it a critical problem, five percentage points more than four years ago.
  • If Congress allows the small business deduction to expire at the end of 2025, it will result in a massive tax increase for small businesses and likely exacerbate the federal tax issue.
• “State taxes on corporate income” is the second most important tax problem. 22 percent of respondents say it is critical, compared to just 19 percent four years ago.

• Both “uncertainty regarding the economic situation” and “uncertainty regarding government measures” have become more important compared to 2020.
• Small business owners rank “uncertainty about economic conditions” as the third biggest problem for their business (in 2020 it was still in ninth place).

o 22 percent of small business owners say it is critical.

• “Uncertainty about government measures” is in 8th place and is critical for 23%.
• “Finding qualified employees” in 5th place^th and is critical for 28%.

The purpose of this publication is to provide a better understanding of what issues are most and least critical for small business owners. This report will help state and federal legislators prioritize legislation to benefit small businesses in the coming years.

The results of this publication are based on the responses of 2,873 small business owners/NFIB members to a mail-in survey conducted from February to mid-April 2024. Owners individually assessed 75 potential business problems and rated their severity on a scale of “1” for a “critical problem” to “7” for “not a problem.” An average was calculated for each problem, which served as the basis for rating or ranking the problems.

Click here to download the NFIB Small Business Issues and Priorities 2024 report.