WASHINGTON–A new, national survey of more than 650 small and micro-business owners released by the National Association for the Self-Employed (NASE) has found America’s small business community “strong,” with 52% indicating they are optimistic about their own small organization’s future, while also indicating they face challenges due to rising health care and prescription drug costs (47%), taxes (46%) and inflation (45%).
The survey also found that 66% of small business owners indicated they view the economy as “fair” or “poor,” suggesting that the challenges have directly impacted their view of the nation’s economic conditions, according to the NFIB.
The NFIB noted the economic ratings among small business owners tracks better than recent public opinion polling of the general public which finds a 77% (Pew, May 2024) and 79% (Gallup, May 2024) rating the economy either “fair” or “poor”.
The Full Findings
Additional topline from NASE’s State of America’s Small Business Community Survey includes:
The top five issues facing America’s small business community today:
- 47% - Health care costs and prescription drug prices
- 46% - Taxes
- 45% - Inflation
- 37% - Access to affordable and responsible capital
- 24% - Tax complexity
Retirement Savings Issues
The NFIB reported that retirement savings continues to be an area where small businesses are using a multitude of different ways to save for their future, underscoring the need for policy makers to continue to support creative ways for small business owners to save for their future.
The top ways small business owners today are saving for retirement, include:
- 35% - Savings account
- 26% - Tied between a 401k and a Roth IRA
- 17% - SEP
Tapping Personal Savings
The NFIB said more than 68% of small business reported that their personal savings was used as the primary source of funding for their small business, with 37% saying access to affordable and responsible capital is a challenge (the fourth highest rated challenge small business owners face today).
Other findings:
- 38% of those surveyed would like to see Congress pass a federal leave policy which includes small businesses but allows an opt-in program that allows a businesses’ level of participation.
- 21% would like to see a federal leave policy for small businesses based on a tax credit incentive program like the Employee Retention Credit program enacted during COVID.
Top Tools
Since the COVID Pandemic, when many small businesses faced shutdowns and were forced to quickly become online only, the small business community has fully embraced and utilized technology to be more effective and successful.
The NFIB said the top three technology tools small business owners reported utilizing to grow their business in the last 24 months, include:
- 44% - Expanded broadband/better internet service
- 38% - Training with social media tools
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26% - Training with e-commerce/technology tools