Aloha State News

In a recent release, the National Federation of Independent Business (NFIB) highlighted ongoing challenges faced by small businesses in the United States. The organization's latest reports reveal that inflation and health insurance costs remain significant issues for these enterprises.

Michael Iosua, Hawaii state director for NFIB, stated, "Offering adequate coverage for their employees has become increasingly challenging, given the high cost of health care." He emphasized the need for elected officials to carefully consider new mandates or regulations that might further impact health-care providers and payers. Rising interest rates and overall expenses add to the difficult environment for small businesses in Hawaii.

The NFIB's quadrennial Small Business Problems & Priorities report indicates that since 1986, the "Cost of Health Insurance" remains a persistent issue for small business owners. The "Cost of Supplies/Inventories" has risen in importance due to recent inflation, moving from 12th place in 2020 to second place currently. Interest rates have also surged up the list of concerns.

Holly Wade, Executive Director of the NFIB Research Center, commented on these findings: “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.” She stressed the importance of understanding these issues to strengthen Main Street businesses.

The monthly Small Business Economic Trends report showed that inflation is still a primary concern for many owners. Twenty-five percent identified it as their most significant challenge. Additionally, 38% reported difficulties filling job openings, while a net 33% raised compensation in July—a decrease from previous months.

Bill Dunkelberg, NFIB Chief Economist, noted that "Cost pressures, especially labor costs, continue to plague small business operations." He warned about unpredictable months ahead due to potential economic shifts or policy changes.

NFIB's research reflects input from its members across various states. The average member employs between five and nine individuals. For more updates on Hawaii's small-business news and other related information nationwide, visit nfib.com/hawaii or follow NFIB Hawaii on Twitter @NFIB_HI.