NASE News

SURVEY: State of America’s Small Business Community

National Survey Finds Small Business Owners Optimistic About the Future Despite Rating Economic Conditions as Lagging

National Poll of Small Businesses Finds 52% Optimistic About Their Businesses’ Future, Despite Overwhelming Majority Giving the National Economy Low Marks Citing Biggest Challenges as Health Care and Prescription Drug Costs, Taxes, and Inflation

WASHINGTON, D.C. – A new, national survey of over 650 small and micro business owners  released today by the National Association for the Self-Employed (NASE), the nation’s leading advocate and resource for the self-employed and micro-business community, finds the state of America’s small business community strong with 52 percent indicating they are optimistic about their own small business’ 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. However, 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”.

“Our new, national survey finds the state of the American small business community strong and thriving with over 52% of small business owners indicating they have an extremely or moderately optimistic view of their business’ future over the next year, which speaks to the perseverance and resiliency of a community that has weathered a pandemic, faced shutdowns and staffing shortages,” said Keith Hall, president and Chief Executive Officer.  “But the survey also revealed small businesses continue to encounter major challenges to their growth and success, including rising health care and prescription drug costs, taxes and inflation, which continue to plague our country’s smallest employers. But despite these sluggish economic conditions and challenges, small businesses still rate the economy better than the general public. In fact, the latest economic data shows a record-shattering growth of over 18 million new small employers flocking to becoming their own boss in the last three years alone, fueled by small business owner confidence hitting a post-pandemic high.”

Over the last three consecutive years, the small business boom has continued to roar on with 18.1 new small business applications as of June 2024. NASE supports new and existing entrepreneurs in their self-employment journey through a host of resources, tools and support for members and the larger small business community. A recent U.S. Chamber of Commerce report shows small business owner confidence has hit a post-pandemic high.

“The voice of small business has never been so powerful and continues to attract the attention and support across all political stripes. With the right support from policymakers, our community is poised to lead our nation’s economy back to full health. But, our elected leaders in Washington must continue to give our small businesses the tools and resources to save, grow and thrive,” Hall concluded, outlining the top policy priorities for the community.

Additional toplines 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 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
    
• Over 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)

• 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 be based on a tax credit incentive program like the Employee Retention Credit program enacted during COVID.
  

• Since the COVID Pandemic where 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 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
  • 26% - Training with e-commerce/technology tools
• Over 75% of NASE members and allied small business owners who took this survey indicated they are 45 years old and over.  NASE continues to support the journey to self-employment through a variety of resources and tools, including a growing growth grant program in collaboration with DELL Small Business, Payanywhere, and most recently AARP, where older Americans can take advantage of a specific financial growth grant award designed for this emerging demographic of entrepreneurs 45+. To identify these new and existing entrepreneurs, the survey asks for the first time the age of our members and allied small business owners:
  • 25-34 – 7%
  • 35-44 -16%
  • 45-54 – 23%
  • 55-64 - 29%
  • 65+ - 25%

The national survey of 681 small business owners was conducted by the National Association for the Self-Employed and comprised largely of NASE members and other small businesses from allied organizations.  The survey was fielded in early summer 2024 and asked self-employed individuals and small business owners to rate current conditions across areas including economic conditions, new technology advancements, public policy issues and retirement benefits, among others. 

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The National Association for the Self-Employed (NASE) is the nation's leading advocate and resource for the self-employed and micro-businesses, offering a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy.

The NASE NextBizThing helps identify and connect our nation’s smallest businesses. Need small business help? Check out NASE’s Ask the Experts for advice or the NASE Minute for small business support.

The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org