Big Sky Times

Small businesses across the United States are facing critical challenges, as detailed in the latest Small Business Problems & Priorities report by the National Federation of Independent Business (NFIB). Released every four years, this report covers 75 different issues impacting businesses. The current edition highlights a significant rise in the concern over interest rates, which has climbed from 56th position in 2020 to 13th in 2024.

"Small businesses have faced rising costs in inventory, utilities, fuel and interest rates," stated Ronda Wiggers, Montana state director for NFIB. "Now they are faced with the uncertainty of a possible 20% increase in their business income tax. Combined, these create serious economic concerns for Montana’s Main Street businesses."

The report highlights that "Cost of Health Insurance" has remained the number one issue since 1986. "Cost of Supplies/Inventories" has moved up to second place, reflecting the impact of inflation over the past two years. "Cost of Natural Gas, Propane, Gasoline, Diesel Fuel Oil" and "Electric Costs (rates)" also rank high on the list of concerns for small business owners.

Interest rates, identified as a critical issue, have notably risen in rank, while "Uncertainty over Government Actions" stands at 8th position, marked critical by 23% of respondents. "Federal Taxes on Business Income" is ranked 4th, and "State Taxes on Business Income" is noted as the most severe tax issue faced by small businesses.

"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," Holly Wade, Executive Director of the NFIB Research Center, explained. "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."

NFIB has spent the last 80 years advocating for small and independent businesses in the United States, and the findings of their research provide important insights for lawmakers and the public.

For more information, visit nfib.com or follow NFIB Montana on Twitter at @NFIB_MT.