The National Federation of Independent Business (NFIB) released the 11th edition of its quadrennial report, Small Business Problems and Priorities. First published in 1982, this report is issued every four years by the NFIB Research Center. The 2024 report is based on a nationwide survey of small business owners, providing a comprehensive guide to 75 issues and their impact on Main Street.

“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,” 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 publication makes clear where lawmakers should focus their attention to strengthen Main Street and every community in which they operate. 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.”

Key findings include:

Cost Pressures Fuel Small Business Concerns

Unchanged since 1986, the “Cost of Health Insurance” remains the number one chronic issue for small business owners.

The “Cost of Supplies/Inventories” moved up in importance from ranking 12th in 2020 to its current second place ranking – a direct result of historic inflation over the last two years. The percentage of owners who find it a critical problem increased from 9 percent in 2020 to 20 percent in 2024.

The “Cost of Natural Gas, Propane, Gasoline, Diesel, Fuel Oil” is the sixth most severe problem cited by small business owners. Nearly one-in-four report it as critical.

Similarly, “Electricity Costs (rates)” is a top issue for small business owners, ranking tenth in 2024 and reported critical by 16 percent.

Increasing in importance from 2020, “Interest Rates,” topped the list by rising from rank fifty-sixth in 2020 to thirteenth in 2024.

Two of the Top-10 Problems are Tax-Related

The most severely ranked tax problem is “Federal Taxes on Business Income.” It ranks fourth down one position from 2020. The Tax Cuts and Jobs Act benefited most small businesses but many still find their federal tax burden a critical problem.

A quarter of small business owners think it is a critical problem, five points higher than four years ago.

If Congress lets the Small Business Deduction expire at the end of 2025, it will result in a massive tax hike on small businesses and will likely exacerbate the federal tax issue.

“State Taxes on Business Income” ranks as the second most severe tax issue. Twenty-two percent report it as critical up from nineteen percent four years ago.

Uncertainty Dominates Top-5 Small Business Concerns

“Uncertainty over Economic Conditions” and “Uncertainty over Government Actions” both moved up in importance from 2020.

Small business owners rank “Uncertainty over Economic Conditions” as the third most severe problem facing their business up from its ranking ninth in 2020. Twenty-two percent of small business owners report it as critical.

“Uncertainty over Government Actions” ranks eighth and is critical for twenty-three percent.

“Locating Qualified Employees” ranks fifth and is critical for twenty-eight percent.

The purpose of this publication is to offer a better understanding of which issues are most critical or least important for small business owners. This report will help state and federal lawmakers prioritize pro-small-business legislation in future years.

The findings are based on responses from 2,873 NFIB small business members who participated in a mail survey conducted between February through mid-April of this year. Owners evaluated each potential problem individually using a scale ranging from "1" for "Critical Problem" to "7" for "Not a Problem." An average score was calculated for each issue to determine its ranking.

To download NFIB’s full report on Small Business Problems and Priorities for this year click here.

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