Majority of Small Business Owners Fearful the U.S. Economy is Moving in the Wrong Direction
Published Tuesday, July 23, 2024
National Write Your Congressman Index identifies inflation, taxes,
and uncertainty about the U.S. economy as top concerns for business owners
DALLAS – JULY 23, 2024 – National Write Your Congressman (NWYC), an
organization that gives small businesses a voice in government, released its Q22024 Index measuring Congressional and business sentiment. The Index found
business owners’ trust, satisfaction, and hope in Congress at its highest level
since 2020, but more than 67 percent of business owners are concerned and
fearful the U.S. economy is moving in the wrong direction.
"Small business owners are concerned about how
the election results may affect their business and are grim on the current U.S.
economy," said Randy Ford, President and COO of National Write Your
Congressman. "While it is encouraging to see business owners’ trust,
satisfaction, and hope in Congress have increased over the last four years, we
know there are still feelings of uncertainty and fear. We encourage our members
to continue using their voice to ensure their business priorities are heard in
Washington."
The 2024 Election
Of those who watched the first presidential debate,
95 percent said it did not change their voting decision for November. Only nine
percent of business owners planning to vote are still deciding or considering
their options. The survey was conducted prior to President Biden
dropping out of the 2024 election.
Immigration, inflation, taxes, the U.S. debt
ceiling and future government spending, regulations, and high interest rates
were the most important topics business owners want candidates to address
during the 2024 election.
“Thriving and succeeding over the past year has not
occurred in our small, family-owned business. Inflation, uncertainty, and the
mentality of the current federal and state administrations have been
disastrous,” said James Bobst, Vice President, Corporate Relations & Human
Resources, Pacific
Fibre Products, Inc. in Longview, Washington.
Seventy-four percent of business owners anticipated
their business would have been negatively impacted due to potential regulatory
changes if President Biden was re-elected, while 83 percent expect a positive
impact if President Trump is elected.
“With the help of our team members, leadership, and
expansion, we have been able to maintain our sales. If we get new leadership in
D.C., I believe our business will thrive,” said Roger Barnhart, Founder, Barnhart Bolt in Odessa, Texas.
Economic Outlook
Less than two percent of business owners think the
economy is heading in the right direction. Half of small businesses have
remained flat, while 31 percent are declining. Nineteen percent of small
businesses are growing.
The survey found that inflation, taxes, uncertainty
about the future of the U.S. economy, regulations, high interest rates, and
hiring qualified workers are the most important issues facing business owners
today.
“Thankfully, my businesses have been stable enough
to endure these tumultuous times, but it has come at the expense of us having
to raise prices on our customers to combat inflation costs we incur,” said Gary
Hoffman of Tow King of Waco in
Waco, Texas.
“Skyrocketing interest rates would be the biggest
hurdle thus far in my three years in business. Required equipment needed to
grow has become more and more out of reach as far as funding. Reduced
regulations and changes are needed to foster and incentivize small business
growth,” said Cam Caudle, Owner, Solid Rock Autobody LLC in Marshville,
North Carolina.
Congressional Sentiment
Fifty-seven percent of business owners believe
their elected U.S. Congressional Members know their opinions on important
issues, an increase from Q1 2024. Forty percent believe their elected
Congressional Members act according to their constituents' input a slight
decrease from Q1 2024.
“I want to see our elected officials work together
for the good of the tax-paying citizens of this country,” said Ginger R.
Bruvold of Outpost Feed & Ranch Supply
in Lake George, Colorado.
Methodology
NWYC collected data using an online survey from
June 28 through July 12, 2024. A total of 1,011 respondents participated.
Respondents represent 46 of the 50 states in the U.S. Fifty-eight percent of
business owners surveyed employ one to nine employees, and 39 percent employ 10
to 99 employees.
About National Write Your Congressman
Since 1958, National Write
Your Congressman (NWYC) has empowered small businesses by providing nonpartisan
information, research, and tools to connect with their representatives in
Washington. As the nation's largest, privately held, nonpartisan membership
organization made up of small businesses, NWYC's team of experts provides
unbiased, nonpartisan information and research on top issues and pending
legislation relevant to small business owners today. NWYC presents both sides
of the issue so that members can form an educated opinion and let their elected
officials know their opinion.
