Beaver State News

Inflation, rising health insurance costs, and labor shortages continue to challenge small businesses, according to recent reports from the National Federation of Independent Business (NFIB). The organization released its quadrennial Small Business Problems & Priorities report and its monthly Small Business Economic Trends (SBET) report this week.

Anthony Smith, Oregon state director for NFIB, stated, "Owning and operating a small business is always a challenge – and that hasn’t changed since we’ve been surveying our members on these problems and priorities for the last 40 years." He highlighted that inflation affects all aspects of running a financially sustainable enterprise.

The Small Business Problems & Priorities report shows that the "Cost of Health Insurance" remains the top issue for small business owners since 1986. Meanwhile, the "Cost of Supplies/Inventories" has moved up in importance due to historic inflation over the past two years. Additionally, "Interest Rates" have risen significantly in concern among business owners.

Holly Wade, Executive Director of the NFIB Research Center, emphasized that understanding these issues is crucial as small businesses employ more than half of the private sector workforce. She said this publication clarifies where lawmakers should focus their attention to strengthen Main Street communities.

The SBET report indicates that inflation remains a significant problem for 25% of small business owners. Job openings remain unfilled by 38% of owners surveyed. Furthermore, there was a decrease in those reporting raised compensation in July compared to June.

Bill Dunkelberg, NFIB Chief Economist noted: “Cost pressures, especially labor costs, continue to plague small business operations.” He warned about unpredictable months ahead concerning economic conditions or government policies.

NFIB's research is based on feedback from its member businesses which typically have between five and nine employees. The organization continues its advocacy efforts on behalf of America's small businesses both at federal and state levels.