Small Businesses Want Elected Officials to Focus on the Economy
Small businesses more interested in this election
Most small business owners are more interested in the upcoming 2024 election than they were in the 2020 election.
Seven in ten (71%) small businesses say they are more interested in the 2024 election than the previous presidential election, including 42% who are much more interested in this year’s election. (Back in Q3 2020, 62% of small businesses said they were more interested in the 2020 election compared to the 2016 election). Fewer respondents say they are less interested in the 2024 election compared to 2020 (7%), while one in five (21%) report having about the same level of interest.
Levels of interest in the presidential election are roughly constant across all business sizes and industries—however there are a few differences. Male-owned small businesses (75%) are more likely than female-owned small businesses (66%) to say they are more interested in the 2024 presidential election than the 2020 presidential election. Similarly, small businesses owned by baby boomers and older generations (77%) are more likely to say they are more interested in the presidential election now than those owned by Gen Xers (66%). Small businesses owned by Gen Zers and millennials fall in the middle (73%). Compared to Q3 2020, baby boomers and older saw an increase in interest compared to 2020 (63% in Q3 2020).
Half of small businesses say that when deciding which political candidate* to support, the candidate’s policy positions are a major factor in their decision (51%). These findings are similar to small businesses’ sentiment in Q3 2020 when 48% said that candidates’ policy positions were a major factor in deciding who to support.
Most small businesses (81%) say policy positions play at least some factor in their decision of which candidate to support, whether major or minor, unchanged since Q3 2020 (81%). Small businesses in the South are most likely of any region to say that policy positions are a factor in which political candidates they support (87% vs. 79% in the Midwest, 77% in the Northeast, 75% in the West).
* In Q3 2020, this question was asked specifically about a “presidential candidate.” In Q3 2024, this question was asked more generally about “political candidates.”
Small businesses want the next president to make the economy top priority
A majority of small businesses want the next president and Congress to prioritize the economy and inflation as the top priority.
Fully 78%* of small businesses say that the economy and inflation should be the first or second most important priority for the next Congress and presidential administration (59% say it is the most important priority). Majorities across business region, size, age of ownership, and gender of ownership all say they want the next president and Congress to prioritize the economy and inflation first. This is particularly true for the group of small businesses who report their business is in average health (72%), rather than good health (54%).
Following the economy and inflation, small businesses want the next president and Congress to prioritize taxes (36%), a slight increase from Q3 2020 (27%). In addition to the economy and taxes, small businesses want the next president and Congress to prioritize healthcare (19%) and immigration reform and border security (18%). The desire to prioritize immigration reform and border security** has more than doubled from Q3 2020 (7%).
When it comes to immigration, about two in three (67%) small businesses say the U.S. should issue more skilled worker visas each year so businesses can hire the workers they need (67%), up 13 percentage points from Q4 2023 (54%).
More small businesses owned by Gen Zers and millennials agree with this sentiment than those owned by Gen Xers or baby boomers and older (86% vs. 78% and 71%, respectively). And, when it comes to hiring more broadly, nearly four in five (79%) small businesses say that employers should more often consider hiring from overlooked talent pools, such as formerly incarcerated people, veterans, military spouses, or immigrants. This share has increased from 71% who said the same in Q4 2023.
* While this represents a 21-percentage point jump in those citing the economy as the first or second top priority from Q3 2020 (57%), COVID-19 (25%) and racial issues (12%) were previously asked as policy priorities in Q3 2020. These two responses were not asked in Q3 2024.
** In Q3 2020, the “immigration reform and border security” response was asked as just “immigration reform.”
Marietta, Georgia
Small Businesses Want More Compromise, Less Gridlock
A majority of small businesses say that gridlock is a serious problem and that it’s more important that their elected representatives find ways to compromise than stick to their beliefs.
This quarter, four in five small business owners (84%) say that partisan gridlock is a serious problem in the federal government. This holds true across industries, company size, and age of ownership, but it is especially true among small businesses owned by baby boomers and older (92%) compared to Gen X-owned (83%) and Gen Z and millennial-owned (82%) businesses.
While the overall share of small businesses calling partisan gridlock a serious problem is roughly the same compared to Q3 2020 (82%), small businesses are now less likely to say that it is a very serious problem: This year, 44% say partisan gridlock in the federal government is a very serious problem compared to 52% in 2020.
At the same time, there is a broad desire among small businesses to see political leaders move beyond partisan gridlock and reach compromise to get things done. Three in four (75%) say it is more important for political leaders to compromise in order to get things done, up from 68% ahead of the 2020 presidential election.
Again, this is true for a majority of small businesses across industry, company size, and age of ownership. However, compared to Q3 2020, more small businesses now say they strongly agree that political compromise is important in order to get things done (35% Q3 2024 vs. 23% Q3 2020). This strong desire for political compromise is particularly high for small businesses in the retail (43%) and professional services (38%) industries compared to those in services (26%). Thirty-five percent of small businesses in manufacturing say they strongly agree that political compromise is important in order to get things done.
Most Say It Is “Very Important” Not to Raise Business Taxes
Small businesses have made it clear that they don’t think this is the time to raise taxes on them—or other businesses. A majority of small businesses (88%) say that it is very important to them that the next Congress does not raise taxes on businesses.
Small businesses in the manufacturing (95%) and retail (92%) sectors are more likely than those in services (79%) to be averse to tax hikes on businesses. Eighty-seven percent of small businesses in the professional services sector agree it’s important that Congress does not raise taxes on businesses.
Two Years On, Inflation Is Still the Top Challenge for Small Businesses
Revenue ranks as the second largest concern, with 28% saying it is one of the biggest challenges. Revenue has held steady as the second biggest challenge since Q4 2023. Concern with revenue is six percentage points higher than it was in Q3 2023. However, it is mostly in line with where it has been throughout 2024.
Third-tier concerns include affording employee benefits or healthcare (16%), rising interest rates (15%), supply chain issues (14%), and employee retention (13%). On the other hand, concern with rising interest rates has declined from a high point of 23% in Q2 2023 to 15% now.
Inflation concerns break down a bit differently depending on the length of operating history and generation of ownership of a small business. Similar to last quarter, inflationary pressure is a larger concern among businesses in operation from 11 to 20 years (67%) and businesses in operation for more than 20 years (64%) compared to those in operation for 10 years or less (50%).
It is also a larger concern among small businesses owned by baby boomers and older generations (66%) compared to businesses owned by younger Americans (56% for Gen Xers; 48% for Gen Zers and millennials).
A line graph showing the top 5 challenges facing small businesses owners, from Q3 2022 to Q3 2024.
