Inflation and Health Insurance Costs Seen As Challenging for Small Businesses

Last week, the Nashville-based National Federation of Independent Business (NFIB) released the 11th edition of its quadrennial report: the Small Business Problems & Priorities report, and its monthly Small Business Economic Trends (SBET) report. In a news release, NFIB reported that inflation and the cost of health insurance continue to be two of the biggest problems facing the nation’s small business owners.

“The ‘Cost of Health Insurance’ continues to be the number one small business problem, a position it has held since 1986,” the Small Business Problems & Priorities report stated. “In 2024, 41 percent of small business owners cite the ‘Cost of Health Insurance’ as critical, a 10-point decrease from 2020. Despite the decline, the percent who find it a critical problem beats the second highest ranking problem, ‘Cost of Supplies/Inventories,’ by 21 points. The percentage of small businesses offering health insurance has steadily increased since 2017, reversing a nearly two-decade-long trend of declining offer rates.”

“It’s no surprise that the cost of health insurance remains the number one issue for small business job creators, as it has become increasingly difficult to offer their hard-working team members the coverage that they need,” said Tray Abney, Nevada state director for the NFIB, in a statement.