Beaver State News

Inflation and the rising cost of health insurance remain significant challenges for small businesses, according to reports from the National Federation of Independent Business (NFIB), the leading small business advocacy group in the United States. These challenges are compounded by difficulties in filling open job positions, as highlighted in two NFIB reports released this week.

Anthony Smith, Oregon State Director for NFIB, underscored the ongoing difficulties faced by small business owners: "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." The NFIB's quadrennial Small Business Problems & Priorities report and monthly Small Business Economic Trends (SBET) report highlight ongoing issues such as inflation and rising interest rates.

"The results from this year's survey confirm what we've been hearing anecdotally here in Oregon for some time now," Smith explained. "Inflation is impacting every aspect of running a financially sustainable enterprise. Health care, interest rates, energy costs – everything is priced higher than it was four years ago. Couple that with the possibility of a massive federal tax increase next year and general uncertainty about the economy, and now you have a pretty good idea what keeps the average small business owner up at night."

Key findings from the NFIB’s latest Problems & Priorities report include the unchanged top issue of "Cost of Health Insurance" for small business owners since 1986. The "Cost of Supplies/Inventories" has become increasingly important, moving up from 12th place in 2020 to second place, attributed to recent historic inflation. Interest rates have similarly climbed in importance, moving from 56th in 2020 to 13th in 2024.

Holly Wade, Executive Director of the NFIB Research Center, commented on the ongoing difficulties for business owners: "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 emphasized the importance of the survey in guiding public policy attention towards strengthening America's main street businesses.

The Small Business Economic Trends report highlights inflation as the top issue, with 25% of business owners identifying it as their primary concern, a four-point increase since June. Further, 38% of business owners reported unfilled job openings, a one-point increase from June, and a net 33% reported raising compensation in July, indicating ongoing cost pressures.

"Cost pressures, especially labor costs, continue to plague small business operations, impacting their bottom line," stated NFIB Chief Economist Bill Dunkelberg. He warned of unpredictable months ahead, with potential impacts stemming from future economic conditions or government policies.

NFIB research reflects the experiences of NFIB-member small-business owners across the nation and is not state-specific. Most NFIB-member businesses employ between five and nine workers.

The NFIB remains committed to advocating for small businesses across the United States. For further information, follow the latest small-business news on www.nfib.com/oregon and on Twitter @NFIB_OR.