A new Minnesota Small Business Economic Trends (SBET) report, produced by the National Federation of Independent Business (NFIB) Research Center and released today, highlights responses from Minnesota small business owners on a variety of issues compared to national averages from the NFIB’s monthly SBET surveys throughout the year.

“The Small Business Economic Trends survey has provided essential information about the small business economy for decades,” said Holly Wade, Executive Director of NFIB’s Research Center. “While this data is a useful tool for evaluating the U.S. economy overall, no state can be defined by national numbers alone. This state-specific report allows us to better understand business conditions and the unique challenges and strengths owners face in Minnesota.”

The Small Business Optimism Index for Minnesota small businesses in Winter (October-March) 2025-26 was 97.2, 1.3 points below the national average. Of the 10 components that make up the Index, four of the components are roughly the same as the U.S. (within a 2-point difference), and six are more pronounced. Current Openings, Economic Expectations, Good Time to Expand, and the two inventory metrics are down. That said, Minnesota small business owners are reporting more plans for capital outlays compared to the U.S. overall.

“Minnesota’s Optimism Index confirms what I’m hearing from small business owners; high taxes and unnecessary regulations are holding them back from growing and investing in our communities,” said NFIB Minnesota State Director Jon Boesche. “The Paid Family & Medical Leave mandate that began this year plays a large role in small business owners’ concerns about government regulation. The stress and pressure Main Street is feeling will add to the high uncertainty and lack of optimism.”

Minnesota small business owners reported that their top issue is taxes, followed by inflation. What stands out is the difference between Minnesota and the U.S. on labor quality and government regulation. While labor quality is less of an issue for Minnesota (an 8-point difference), government regulation is a much bigger problem for the North Star State. Government mandates like Paid Family & Medical Leave are adding unnecessary pressure to small business owners, forcing them to reconsider plans to hire and expand.

The data for this report is sourced from NFIB’s Small Business Economic Trends (SBET) Survey. The NFIB Research Center has collected SBET data, polled from a random sample of NFIB members, with quarterly surveys since the fourth quarter of 1973 and monthly surveys since 1986. To create this new state-specific report, NFIB pooled data from multiple surveys into a weighted average for a given season (Apr-Sep for summer and Oct-Mar for winter). This report analyzes data from Minnesota respondents from throughout 2025.