Small business owners across the United States are facing significant challenges related to energy costs, according to a new survey released by the National Federation of Independent Business (NFIB). The Small Business Energy Survey collected responses from 775 small business owners nationwide, offering insights into how energy use and its associated costs affect their operations.
The survey found that about 80% of small business owners believe that energy costs have a significant impact on their businesses. Owners report using a range of energy sources, but most say these costs present at least moderate challenges. Electricity is the most common source and also the one cited as causing the most problems due to cost and reliability issues.
“Small businesses are highly exposed to energy cost increases, have limited flexibility to reduce costs, and experience direct operational and financial impacts as a result,” said Holly Wade, Executive Director of NFIB’s Research Center. “As owners work to absorb the impact of energy costs into their business, it can often limit their ability to hire, retain talent, and grow.”
The report highlights that small business owners have few effective strategies for managing rising energy expenses. Most respond by accepting lower profits (58%) or raising prices for customers (52%). Only a small percentage—8%—said they had not experienced increased energy costs in the past three years. Of these, some reduced overall usage or upgraded equipment for better efficiency, while others benefited from stable prices.
Heating and cooling represent the largest portion of energy expenses for most businesses, followed by operating equipment or processes and vehicle-related costs. Many owners are taking steps to improve fuel efficiency when replacing vehicles; however, adoption rates for electric or hybrid vehicles remain low.
Operational adjustments are common as businesses seek ways to manage fuel expenses. These include using fewer vehicles or driving them less frequently, rescheduling routes, performing more frequent maintenance, and negotiating with suppliers.
Grid reliability has emerged as another concern: two-thirds of surveyed businesses reported experiencing power outages in the past year. Equipment failure was cited more often than weather events as the cause. However, most small business owners do not think local data centers are affecting their electricity bills.
The survey also found that recycling is widely practiced among small businesses and is mostly done voluntarily rather than due to regulation. Materials like paper, cardboard, metal, and glass are commonly recycled.
NFIB conducted this survey via email between November 3 and November 14, 2025. A random sample of 20,000 members from its database was invited to participate.
