As small businesses navigate an increasingly uncertain economic landscape, concerns over inflation, policy decisions, and tax changes weigh heavily on growth plans. In today’s episode of U.S. Chamber of Commerce Small Business Update, Tom Sullivan, vice president of Small Business Policy at the U.S. Chamber of Commerce, shares insights on small business owners’ key challenges and the urgent need for policy stability.
Despite confidence levels remaining above last October’s low, small business confidence has still taken a hit. A lot of companies are pulling back on investments and hiring due to rising uncertainty. Sullivan highlights data from the National Federation of Independent Business (NFIB), Vistage, and the U.S. Chamber of Commerce, showing a downward trend in capital investment and hiring expectations. Inflation remains a top concern, with rising costs for labor and materials, compounded by potential new tariffs that could further impact supply chains.
Energy costs and tax policies are also key to business owners’ concerns. Sullivan warns that proposed tariffs on Canadian crude oil could drive up gas prices, adding more pressure to operating costs. Meanwhile, the debate over making the 2017 tax cuts permanent is heating up.
He shares the story of a small IT company in Maryland, where tax savings allowed an employee to transition from part-time to full-time, gaining access to a 401(k) that helped secure a home purchase.
Sullivan urges business owners to take action by advocating for policies that provide long-term certainty. He encourages them to contact their congressional representatives, publish op-eds, and engage with their local chambers of commerce to amplify their voices.
"The call to action by small business owners is to tell their story… They’re not multi-billionaires benefiting from a tax break. They’re small business owners that want certainty to make those tax cuts permanent so they can reinvest and build their businesses." – Tom Sullivan
