New surveys from NFIB also show inflation, labor shortages continue to plague Main Street firms
FOR IMMEDIATE RELEASE
Contact: Michael Iosua, Hawaii State Director, [email protected]
or Tony Malandra, Senior Media Manager, [email protected]
Honolulu, Aug. 14, 2024—In two polls released this week by the National Federation of Independent Business (NFIB), the nation’s leading small business advocacy association, inflation and the cost and availability of health insurance continue to batter Main Street enterprises.
“Offering adequate coverage for their employees has become increasingly challenging, given the high cost of health care,” said Michael Iosua, Hawaii state director for the National Federation of Independent Business (NFIB), which released its quadrennial Small Business Problems & Priorities report, today, and its monthly Small Business Economic Trends (SBET) report, yesterday, (August 13).
“It’s evident why insurance is a top concern for small business owners in Hawaii. Elected officials should carefully consider any new mandates, fees, or regulations that could further burden health-care providers and payers. Along with rising interest rates and overall increase in expenses—from materials and labor to gas and electricity—small businesses in Hawaii are facing one of the most difficult environments we’ve seen in years.”
Highlights from NFIB’s latest Small Business Problems & Priorities report, published every four years since 1982 include:
- Unchanged since 1986, the “Cost of Health Insurance” remains the number one chronic issue for small business owners.
- The “Cost of Supplies/Inventories” moved up in importance from ranking 12th in 2020 to its current second place ranking – a direct result of historic inflation over the last two years.
- “Interest Rates,” topped the list by rising 43 positions from a rank of 56th in 2020 to 13th in 2024.
“For the last four years, small business owners have struggled with historic inflation, tax pressures at all levels of government, and uncertainty of what’s going to happen next,” said Holly Wade, Executive Director of the NFIB Research Center. “This survey helps the public understand the issues affecting the small business sector. Small businesses employ more than half of the private sector workforce, and this publication makes clear where lawmakers should focus their attention to strengthen Main Street and every community in which they operate.”
Highlights from NFIB’s latest Small Business Economic Trends report, released the second Tuesday of every month, include:
- Inflation remains the top issue among small business owners, with 25% reporting it as their single most important problem in operating their business, up four points from June.
- Thirty-eight percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, up one point from June.
- Seasonally adjusted, a net 33% reported raising compensation in July, down five points from June and the lowest reading since April 2021.
“Cost pressures, especially labor costs, continue to plague small business operations, impacting their bottom line,” said NFIB Chief Economist Bill Dunkelberg. “Owners are heading towards unpredictable months ahead, not knowing how future economic conditions or government policies will impact them.”
NFIB research (Jobs Report, SBET, Problems & Priorities) is of NFIB-member, small-business owners and not broken down by state. The average NFIB-member small business has between five and nine employees.
Keep up with the latest Hawaii small-business news at www.nfib.com/hawaii or by following NFIB Hawaii on Twitter @NFIB_HI.
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For 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
NFIB Hawaii
745 Fort Street Mall 17th Floor
Honolulu, HI 96813
808-541-9050
NFIB.com/HI
Twitter: @NFIB_HI
