As 2024 draws to a close, small business owners are looking back at a year filled with challenges, resilience, and victories. In today’s episode of the U.S. Chamber of Commerce Small Business Update, Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce, discusses how small businesses navigated inflation, the key regulatory wins in Washington, and the outlook for 2025. Sullivan offers a candid look at the year’s successes and the hurdles still facing Main Street as we enter a new year of opportunity and growth.
Firstly, Sullivan provides a comprehensive overview of 2024’s economic landscape and what lies ahead for small businesses in 2025. Despite the ongoing challenges of inflation, which has been a top concern for small business owners for the third consecutive year, Sullivan emphasizes the resilience of these businesses in maintaining revenues even as profits have been squeezed. He spotlights key legislative victories, particularly the successful legal battles against overreach by federal agencies like the Federal Trade Commission and the Securities and Exchange Commission.
In addition, Sullivan asserts that inflation remained a major pain point, especially for small businesses that found it difficult to pass on price increases to customers without losing their competitive edge against larger retailers.
The growing concern over red tape and increasing regulation was another obstacle, with over 50% of small business owners expressing dissatisfaction with the regulatory burden. However, Sullivan points out a surge in optimism post-election, particularly due to deregulatory efforts and a pro-business administration in the White House.
Overall, looking to 2025, Sullivan remains cautiously optimistic but warns that the road to growth will require continued advocacy for pro-growth policies, particularly those related to tax codes and business deductions set to expire.
The U.S. Chamber’s top priority is ensuring that tax provisions favorable to small businesses remain intact. One such provision is the 20% deduction for most small businesses, which will expire after 2025.
"Our biggest challenge ahead of us is making sure that the pro-growth tax policies, particularly the 20% deduction for small businesses, are made permanent. It's crucial for the future growth of these businesses." - Tom Sullivan.
