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Inflation and health insurance costs pose a challenge for small businesses

Last week, the Nashville-based National Federation of Independent Business (NFIB) released the 11th edition of its quadrennial report: Problems and priorities of small businesses report, and its monthly Small Business Economic Trends (SEPT) report. In a press releaseNFIB reported that inflation and the cost of health insurance remain two of the biggest issues facing small business owners in the country.

“The ‘cost of health insurance’ remains the number one problem for small businesses, a position it has held since 1986,” he said. Problems and priorities of small businesses The report states: “In 2024, 41 percent of small business owners cite ‘cost of health insurance’ as critical, a 10-point decrease from 2020. Despite the decrease, the percentage who consider it a critical issue outpaces the second-highest issue, ‘cost of supplies/inventory,’ by 21 points. The percentage of small businesses offering health insurance has risen steadily since 2017, reversing a nearly two-decade 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 provide their hard-working team members with the coverage they need,” said Tray Abney, Nevada state director for the NFIB, in a statement.