Majority of Small Business Owners Say U.S. Economic Environment is Harming Their Business
Published Wednesday, October 9, 2024
National Write Your Congressman Index identifies
immigration, inflation, and the U.S. economy as top issues business owners want
Presidential candidates to address as Election Day nears
DALLAS – October 9, 2024 – National Write Your Congressman (NWYC), an
organization that gives small businesses a voice in government, released its Q3 2024 Index measuring
Congressional and business sentiment. The Index found an increase in business
owners’ trust, satisfaction, and hope in Congress from Q2 2024, but more than 85
percent of business owners say the U.S. economic environment is harming their business.
Sixty-seven percent of business owners are concerned and fearful the U.S.
economy is moving in the wrong direction.
“Small business owners are deeply concerned about
how the election results may impact their business, especially given the
current economic challenges,” said Randy Ford,
President and COO of National Write Your Congressman. “However, it's
encouraging to see an increase in trust, satisfaction, and hope in Congress
over the last four years. Small business owners remain resilient, and we
encourage them to continue advocating for their business priorities in
Washington, ensuring their voices are heard. Positive change is possible but
will require business owners to stay engaged.”
The 2024 Election
Among those who watched the second presidential
debate, 83 percent said it did not change their voting decision for November. Only
three percent of business owners are still deciding or unsure of who they will
vote for in the 2024 Presidential election. Last quarter, nine percent of
business owners were undecided.
The Index identified immigration, inflation, the
U.S. economy, taxes, and the U.S. debt ceiling and future government spending
as the most important topics business owners want candidates to address as
November 5 approaches.
“With higher costs of
products, labor, and living expenses, I would hope that the president would
work to implement changes not only in the regulations that affect our business
but will try and reduce the high cost of government in all of our lives,” said Patrick Hanon, Owner, O’Hanon’s LLC in
Farmington, New Mexico.
When asked about immigration reform and its impact
on labor markets, 59 percent of business owners expressed significant concern
about the effects of immigration policies on their ability to hire qualified
workers. Twenty-four percent were not concerned or unsure about how immigration
would affect their hiring capabilities.
Fifty-seven percent of business owners are not
concerned about the potential impact of tariffs and trade policies (e.g.,
President Trump’s proposed 20% tariff on imports). Only 10 percent of
respondents were uncertain about how a Trump administration would affect their
business, and 8 percent were unsure about the impact of a Harris administration
depending on the specific policies enacted.
Twenty-two percent believe Vice President Harris'
proposed tax cuts for middle-class families and small businesses will benefit
their business. In comparison, 63 percent believe the tax cuts will have no
impact.
“We have succeeded through hard work. Streamlining
processes and procedures and empowering employees with opportunities to grow. I
do not think the government has done anything to help my business grow,” said Todd
May, President Crossroads
Construction Co. Inc. in Magna, UT.
Economic Outlook
Sixteen percent of business owners are worried the
U.S. economy will decline due to the November 2024 election, and only 4 percent
of business owners remain optimistic that the U.S. economy is heading in the
right direction and will stay strong regardless of the election’s outcome.
Small businesses are facing mounting challenges as
35 percent now report a decline in performance, a sharp 13 percent jump from
last quarter. Nearly half (49 percent) have remained stagnant, while only 16
percent are experiencing growth—down from 19 percent in the previous quarter.
“Our business has not thrived but maintained for
the past three years. Inflation has
cause us to endure an economic flatline,” said Shannon Lang, Havener's
Termite & Insect Control located in multiple locations across Missouri. The survey also found that inflation, taxes,
economic uncertainty, regulations, and high interest rates are the most
pressing concerns facing business owners today.
“The biggest single challenge to the economic
climate of today is the exodus of heavy industry from this country. We need to
reignite the industrial might of this nation,” said Karl E. Lutz, co-owner
KDL Machining Inc. in Pekin, Illinois.
Congressional Sentiment
Fifty-eight percent of business owners believe
their elected U.S. Congressional Members know their opinions on important
issues, and 41 percent believe their elected Congressional Members act
according to their constituents' input, an increase from Q2 2024.
“We have struggled, sales are down on the capital
equipment we build, prices are up on the materials and labor we need, we are
funding 100% of product development, and interest rates are hurting us. We need
real leaders to lead our country. Someone who can relate to the everyday issues
of all sizes of businesses and individuals,” said Todd Hendricks Sr., Founder Pioneer Industrial Systems, LLC located
in multiple locations across Ohio.
Methodology
NWYC collected data using an online survey from September
12 through September 25, 2024. A total of 1,237 respondents participated.
Respondents represent 49 of the 50 states in the U.S. Sixty-one percent of
business owners surveyed employ one to nine employees, and 37 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.
