Hawkeye Reporter

The National Federation of Independent Business (NFIB) has published the latest edition of its Small Business Problems and Priorities report. This comprehensive survey of small business owners is conducted every four years by the NFIB Research Center, beginning in 1982. The 2024 report includes an analysis of 75 key issues affecting small businesses across the United States.

"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," stated Holly Wade, Executive Director of the NFIB Research Center. According to Wade, the survey aims to highlight the challenges impacting the small business sector and guide lawmakers in bolstering Main Street. Despite economic adversity, Wade emphasized the efforts of small business owners to continue creating jobs and growing their enterprises.

NFIB State Director Matt Everson noted the specific challenges facing Iowa's small businesses. "Small business owners in Iowa are facing significant challenges," Everson said, referencing issues such as inflation and tax pressures. He stressed the importance of Iowa lawmakers taking the report's findings into account to support local small businesses.

The report identifies "Cost of Health Insurance" as the top persistent challenge since 1986. "Cost of Supplies/Inventories" rose to second place, reflecting recent inflationary trends. Additionally, energy-related costs such as "Natural Gas, Propane, Gasoline, Diesel, Fuel Oil," and "Electricity Costs (rates)" rank as significant concerns for small businesses.

Taxation remains a critical challenge, with "Federal Taxes on Business Income" ranking as the fourth most severe problem. Potential changes in tax legislation, including the possible expiration of the Small Business Deduction in 2025, could further complicate the situation. Similarly, "State Taxes on Business Income" also presents a significant burden.

Uncertainty around economic conditions and government actions is a dominant concern, with both ranking high in severity compared to previous years. The difficulty in "Locating Qualified Employees" also ranks prominently among small business challenges.

The report is based on responses from 2,873 NFIB members, who rated various issues' severity on a scale of 1 to 7. This data aims to direct legislative priorities to better assist small businesses in the future.

For more details, the NFIB encourages interested parties to download their full 2024 Small Business Problems and Priorities report.