Rushmore State News

The National Federation of Independent Business (NFIB) unveiled its 11th quadrennial Small Business Problems and Priorities report. First published in 1982, this thorough examination occurs every four years and is derived from a survey of small business owners nationwide, highlighting 75 issues impacting the business landscape.

Holly Wade, the Executive Director of the NFIB Research Center, noted the difficulties faced by small businesses over the past four years, saying, “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.” Wade emphasized the importance of the survey, stating, “This survey helps the public understand the issues affecting the small business sector. Small businesses employ nearly half of the private sector workforce, and this publication makes clear where lawmakers should focus their attention to strengthen Main Street and every community in which they operate. Despite the headwinds and economic challenges, small business owners are working hard to create new jobs and grow their businesses, but the threat of rising costs, taxes, and uncertainty gives Main Street pause.”

Jason Glodt, NFIB's State Director in South Dakota, highlighted the challenges faced by small businesses within the state. “It is evident that South Dakota small businesses are grappling with significant cost increases, burdensome taxes, and a sense of uncertainty,” Glodt said. He urged local lawmakers to respond to the survey’s findings with supportive legislation.

The report identifies key concerns such as the cost of health insurance, which has been the top issue since 1986, and the rising cost of supplies due to inflation. Natural gas, propane, fuel oil, and electricity rates also rank among the top concerns. Interest rates have jumped significantly in priority, moving from 56th place in 2020 to 13th in 2024.

Tax issues also feature prominently, with federal and state taxes on business income being critical problems. Twenty-five percent of small business owners view federal taxes as a critical concern, a number that rose by five percent since 2020.

Economic and governmental uncertainties continue to dominate the list of challenges. “Uncertainty over Economic Conditions” and “Uncertainty over Government Actions” have both climbed in importance since the last report, with small businesses expressing significant concern.

The survey conducted with responses from 2,873 NFIB members between February and mid-April 2024 aims to inform state and federal lawmakers in prioritizing legislation to aid small businesses.