Buckeye Reporter

The National Federation of Independent Business (NFIB) has released its 11th quadrennial report titled "Small Business Problems and Priorities." This report, first published in 1982 and issued every four years by the NFIB Research Center, surveyed a national sample of 40,000 NFIB members, including a specific sample of 1,500 from Ohio to provide state-specific insights.

"This data makes it clear for lawmakers: Ohio small business owners are overwhelmed with rising costs across the board and are uncertain about the future of their businesses," stated Chris Ferruso, NFIB Ohio State Director. He added that while there is determination to rebound, expensive government regulations and taxes are hindering progress.

In Ohio, the ten most burdensome problems identified include the "Cost of Health Insurance," "Federal Taxes on Business Income," and "Electricity Costs (rates)," among others. The issue of health insurance costs is noted as particularly severe both in Ohio and nationally. Additionally, Ohio's small business owners face unique challenges with employee-related issues like turnover and managing employees.

On a national level, cost pressures remain significant concerns for small business owners. Since 1986, the cost of health insurance has been a persistent issue. The report notes an increase in concern over supply costs due to recent inflationary trends. Energy costs also rank highly as critical issues for many businesses.

Tax-related issues form two of the top ten problems nationally. Federal taxes on business income continue to be a major concern despite past benefits from tax reforms like the Tax Cuts and Jobs Act. Concerns loom over potential tax hikes if certain deductions expire at the end of 2025.

Uncertainty is another dominant theme affecting small businesses today. Both economic conditions and government actions have moved up in importance since 2020. Holly Wade, Executive Director of the NFIB Research Center said, "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."

The survey results aim to inform lawmakers about pressing issues facing small businesses so they can prioritize legislation beneficial to this sector.

Data for this publication were gathered through responses from 2,873 NFIB members via a mail survey conducted between February and mid-April 2024. Respondents evaluated various business problems based on severity using a scale from "1" (Critical Problem) to "7" (Not a Problem).