FOR IMMEDIATE RELEASE
Contact: Patrick Connor, Washington State Director, patrick.connor@nfib.org,
or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org

OLYMPIA, Wash., July 7, 2026—The National Federation of Independent Business (NFIB) today released a Washington-specific version of its nationally regarded monthly Small Business Economic Trends (SBET) report, showing the state below the national average in three important categories: ‘Expecting Economy to Improve,’ ‘Plans to Increase Employment,’ and ‘Now a Good Time to Expand.’

“This new, semi-annual report condenses six months’ worth of SBET findings to come up with more solid datapoints that policymakers in Olympia and in local communities can use to improve the Main Street entrepreneurial climate in our state,” said Patrick Connor, state director for the National Federation of Independent Business (NFIB), who has been leading the small business fight to repeal the state’s new income tax.

“The whole report is worth a read, but for those on a tight timeframe, I suggest jumping to Page 9 on the Top Issues.”

From the Top Issues page:

“One key question that adds color and nuance to the Indexes is the owners’ single most important problem. This question shows a different profile of difficulties for Washington small businesses vs. those in the rest of the country. Those differences serve as the telltale sign of why Washington is so tough for small business.”

Takeaways from the Washington-specific report:

• Labor cost is dramatically worse in Washington than in the U.S. overall, with more than twice as many respondents ranking it as their top problem (19% vs. 9%).
• The best single metric on the health of the small business environment is NFIB’s Small Business Optimism Index. While this metric currently rates conditions in the U.S. overall as decent, slightly above the historical average, it is flashing a bright red warning sign for the state of Washington.
• The latest data shows the Washington Index at 94.5, 4 points below the U.S. level of 98.5 and 3.5 points below the historical national average. The current negative reading is no sudden anomaly. Last period, the gap was even worse, with 93.6 for Washington vs. 98.6 for the U.S.

Main Street enterprises in Washington also report much worse small business health, with many fewer in “Excellent” health and many more in “Fair” and “Poor” health. NFIB began publishing its Small Business Economic Trends (SBET) report quarterly, starting in 1973 and then monthly since 1986. The report tracks economic activity among small businesses in the U.S. The survey measures changes in sales, employment, investment, financing, and economic sentiment. While useful as a country-wide snapshot, no state can be defined by national numbers alone. Therefore, the NFIB Research Center has now launched new, semi-annual “State of the States” SBET reports for some of the largest states in the U.S. In order to create statistically meaningful numbers, responses from six monthly surveys are pooled together, creating summer (April-September) and winter (October-March) datapoints.

These reports help signal the unique challenges and strengths of each state covered. The full state-specific SBET for Washington state can be read at the link above or here. A brief, one-page history of the SBET can be read here. Connor’s end-of-session report on the Washington State Legislature can be read here.

Keep up with the latest Washington state small business news at www.nfib.com or on X @NFIB_WA or on Facebook @NFIB.WA

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For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.

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