October 2024 Board Member Newsletter Article

Here’s What Small Business Owners are Saying Ahead of the 2024 Election

John Kirchner
Executive Director, Congressional and Public Affairs
U.S. Chamber of Commerce

Small businesses want elected officials to focus on the economy as the very top issue, according to the Q3 MetLife and U.S. Chamber of Commerce Small Business Index. It is also important to them that taxes do not increase: fully 88% say it is very important that the next Congress not raise business taxes.

A majority of small businesses also say that political compromise is necessary to get things done in Washington, with even more saying this than four years ago. Additionally, a majority says political gridlock is a serious problem.

Small Businesses More Focused on This Election  
Most small business owners (71%) say they are more interested in the 2024 election compared to the 2020 election, with 42% expressing significantly higher interest levels. Levels of interest in the election are relatively consistent across various business sizes and industries.
When deciding which candidate to support, half (51%) of small business owners say policy positions play at least some factor in influencing their choice.

Economy Is the Top Priority  
The economy is at the forefront of this election for small businesses, with 78% saying that the economy and inflation should be the first or second-highest priorities for the next Congress and presidential administration, and a majority (59%) citing them as the single, most important issue.

Small business owners also want any future administration to prioritize tax policy (36%). A large majority of small business owners (88%) emphasize that it is “very important” not to raise business taxes. Specifically, small businesses in the manufacturing (95%) and retail (92%) sectors are the most opposed to tax increases.

Small businesses also have other vital issues on their mind. Though not as prominent as their concerns about taxes, they also believe that healthcare (19%) and immigration reform and border security (18%) should be top priorities for the next Congress and presidential administration.

Small businesses have also indicated their need for workers to fill a chronic, ongoing labor shortage. About two in three (67%) small businesses believe the United States should issue more skilled worker visas to meet hiring needs, compared to 54% from Q4 2023. In a broader hiring context, nearly four in five (79%) small businesses believe employers should consider hiring from overlooked talent pools, including veterans, incarcerated people, military spouses, and immigrants.

Small Business Owners Want More Compromise Among Elected Leaders  
This quarter, small business owners have voiced their support for elected officials coming together to collaborate and work to find compromise – and have aired their concerns about the negative impact of paralyzing, partisan gridlock. Three in four (75%) small business owners emphasize that political leaders must compromise to get things done, up from 68% during the 2020 electing cycle. This is true for most small businesses across industry, company size, and age of ownership.

Even more small businesses (84%) say that partisan gridlock is a serious problem in the federal government. This sentiment is consistent across various industries and company sizes, but it is particularly prominent among small businesses owned by baby boomers and older individuals (92%), compared to Gen X-owned (83%) and Gen Z and millennial-owned (82%) small businesses.

These findings are part of the quarterly Small Business Index, which also spotlights small business owners’ insights on the economy, and their own business operations and expectations.

This quarter small business owners are optimistic about hiring and revenue, but still see inflation as the top challenge they face. The overall Index score this quarter was 71.2, near the survey high of 71.9 recorded in 2020 just before the pandemic.

Read more about the Q3 Small Business Index findings here