Inflation and health insurance costs continue to challenge small business owners in the United States, according to recent reports by the National Federation of Independent Business (NFIB). The NFIB, a prominent small business advocacy group, released its quadrennial Small Business Problems & Priorities report and its monthly Small Business Economic Trends (SBET) report this week.
Tray Abney, Nevada state director for the NFIB, stated, “It’s no surprise that the cost of health insurance remains the number one issue for small business job creators, as it has become increasingly difficult to offer their hard-working team members the coverage that they need.” He emphasized that officials should reconsider imposing additional mandates on healthcare providers due to rising costs across various sectors.
The latest Small Business Problems & Priorities report highlights persistent issues for small businesses. Since 1986, “Cost of Health Insurance” has remained a top concern. The “Cost of Supplies/Inventories” has risen in importance due to inflation, moving from 12th place in 2020 to second place currently. Additionally, “Interest Rates” have surged from 56th place in 2020 to 13th place in 2024.
Holly Wade, Executive Director of the NFIB Research Center, noted the challenges faced by small businesses over recent years. “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,” she said. Wade stressed that understanding these issues is crucial for lawmakers aiming to support Main Street businesses.
The SBET report also underscores ongoing challenges. Inflation remains a significant issue for small business owners; 25% identified it as their primary problem—an increase from June’s figures. Job openings remain high with 38% reporting unfilled positions. Compensation increases have slowed down with a net 33% reporting raises in July.
Bill Dunkelberg, NFIB Chief Economist commented on these findings: “Cost pressures, especially labor costs, continue to plague small business operations, impacting their bottom line.” He warned about unpredictable months ahead given uncertain economic conditions and potential policy changes.
NFIB research reflects input from its member base but is not broken down by state specifics. On average, NFIB-member businesses employ between five and nine people.
Further information on Nevada’s small-business landscape can be accessed through NFIB’s website or social media channels.
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