Health insurance remains toughest issue for small businesses

(The Center Square) — For nearly four decades, small business owners across the country and in Ohio have said the cost of health insurance is the top chronic issue they face.

It remains the No. 1 concern in 2024 after the National Federation of Small Business released the 11th edition of its Small Business Problems and Priorities report, a survey conducted every four years since 1982.

The national survey samples 40,000 NFIB members, while the Ohio data comes from a sample of 1,500 members to develop state data.

Overall, the report shows Ohio businesses struggle with nearly the same issues as others nationwide.

"This data makes it clear for lawmakers: Ohio small business owners are overwhelmed with rising costs across the board and are uncertain about the future of their businesses," NFIB Ohio State Director Chris Ferruso said. "The small business economy has been determined to rebound, but expensive government regulations and taxes are making it harder."

While the cost of health insurance has ranked first on the list of issues for Ohio and national businesses since 1986, it was followed this year by federal taxes on business income, electric rates, the cost of supplies and inventories and finding qualified employees.

According to the report, uncertainty over economic conditions, fuel costs, finding and keeping skilled employees, unreasonable government regulations and uncertainty over government actions rounded out the top 10.

Some employee issues seem more challenging in Ohio than in the rest of the nation. Employee turnover ranked as the 26th most significant issue in the state but 42nd in the country. Also, managing employees ranked 34th in the state and 43rd nationally.

"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," NFIB Research Center Executive Director Holly Wade said. "This survey helps the public understand the issues affecting the small business sector. Small businesses employ nearly 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."