Skip to content

Health Care Costs, Inflation Continue to Harm Small Businesses

Health Care Costs, Inflation Continue to Harm Small Businesses

August 15, 2024

Health Care Costs, Inflation Continue to Harm Small Businesses

FOR IMMEDIATE RELEASE Contact: Suzanne Budge, Idaho State Director, sbs@sbsidaho.com or Tony Malandra, Senior Media Manager, anthony.malandra@nfib.org   BOISE, Idaho, Aug. 15, 2024—Two reports issued this week by the nation’s foremost authority on small business issues throw into sharp relief the continuing difficulties Main Street, mom-and-pop enterprises are having with staying open and keeping people employed.    “Our Small Business Problems & Priorities report, which we produce every four years, ranks the 75 issues, or, more accurately, struggles, that small business owners encounter in opening an enterprise and keeping it running,” said Suzanne Budge, Idaho state director for the National Federation of Independent Business (NFIB), which released the Problems & Priorities report yesterday, following the Tuesday (August 13) release of its monthly Small Business Economic Trends report. Both listed inflation as a major concern, and the Problems & Priorities also showed the cost of health care holding its first-place rank for the 38th consecutive year.  “I recommend everyone holding elective office or running for one acquaint themselves with the Small Business Problems & Priorities report, which will give them the best education on setting policy affecting the Main Street enterprises of our nation,” added Budge.   Highlights from NFIB’s latest Small Business Problems & Priorities report, published every four years since 1982 include: 
  • 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. 
  • “Interest Rates” topped the list by rising 43 positions from a rank of 56th in 2020 to 13th in 2024. 
“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 more than 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.”  Highlights from NFIB’s latest Small Business Economic Trends report, released the second Tuesday of every month, include: 
  • Inflation remains the top issue among small business owners, with 25% reporting it as their single most important problem in operating their business, up four points from June. 
  • Thirty-eight percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up one point from June. 
  • Seasonally adjusted, a net 33% reported raising compensation in July, down five points from June and the lowest reading since April 2021. 
“Cost pressures, especially labor costs, continue to plague small business operations, impacting their bottom line,” said NFIB Chief Economist Bill Dunkelberg. “Owners are heading towards unpredictable months ahead, not knowing how future economic conditions or government policies will impact them.”  NFIB research (Jobs Report, SBET, Problems & Priorities) is of NFIB-member, small-business owners and not broken down by state. The average NFIB-member small business has between five and nine employees.  Keep up with the latest Idaho small-business news at www.nfib.com/idaho or by following NFIB on Twitter @NFIB_ID.   ###  For 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. 
Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

February 17, 2025
Watch Now: NFIB Unpacks Gov. Shapiro Budget Proposal
Hear from NFIB’s Greg Moreland on what the proposal includes for small bu…
Read More
February 14, 2025
Bipartisan Deal Struck to Save Tipped Wages – Earned Sick Tim…
ESTA and tipped wages legislative update
Read More
February 12, 2025
Small Business Owners Applaud Governor Morrisey’s Commitment…
Gov. Morrisey delivered his first State of the State address
Read More
February 12, 2025
Utah Comment on Latest Small Business Optimism Index
Re-working of House Bill 24 should help keep positive outlook sustained for…
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility