N.F.I.B. Report on the Problems of Small Businesses in USA

According to the National Federation of Independent Business(N.F.I.B), it was found that low demand but not taxes or over regulation which is the biggest problem faced by small businesses in the U.S.

Poor sales was considered as the single most important problem by about 31 percent of surveyed companies. Insurance costs and availability, competition from large businesses, and financing and interest rates, inflation, quality and cost of labor, government requirements and red tape are some other problems faced by America’s small businesses.

The survey revealed that taxes was considered as the superlative problem for most of the small businesses in 17-22 percent range for about a decade. In addition, lending help was found to be another factor which is faced. However, there was a negligible concern for financial and interest rates. At the time of economic downturn, poor sales was found to be the major challenge for a large number of small businesses. Instead of supply-side policies such as cutting taxes and provision of interest-free loans, soft demand was found to be the most complicated.

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