Small Businesses and the 2024 Election
A Balancing Act of Growth and Workforce Stability
Small businesses aren’t just economic engines; they’re the cultural bedrock of American cities and towns, driving job creation, fostering community, and sparking innovation. Yet, as we approach the 2024 election, these essential enterprises are at a crossroads. Inflation, workforce shortages, and regulatory pressures have converged, putting many small-business owners in an increasingly precarious position and making this election one of the most critical in recent memory. With a role on the National Small Business Association (NSBA) Leadership Council, I’m advocating for these entrepreneurs, ensuring that policymakers hear their voices and understand the unique pressures they face.
What Small Businesses Need Most
The call from Main Street is straightforward: stability, accessible capital, and a balanced approach to regulation. Small businesses run on tight margins, so any changes to taxes or regulations ripple through their operations. According to a recent report from the U.S. Chamber of Commerce, 88% of small businesses prioritize avoiding tax hikes, understanding that even modest increases can limit their ability to reinvest in their operations and workforce (U.S. Chamber of Commerce, “Q4 2023 Small Business Index”).
Inflation and economic volatility top the list of worries for 59% of small-business owners, ranking as one of the most significant challenges these businesses currently face (National Federation of Independent Business (NFIB), “Small Business Economic Trends”). The pressures are clear: small businesses need policies that offer a stable tax environment and clear regulations, ensuring they can make strategic decisions without fearing sudden disruptions. The message to lawmakers is clear — if small businesses are to drive America’s economy forward, they need steady support, not added pressure.
What a Republican Win Could Mean for Small Businesses
If Republicans gain power, small-business owners may see a policy shift emphasizing reduced tax burdens and eased regulatory requirements. This approach allows businesses to keep more of their earnings and reinvest those savings in growth, hiring, and innovation. Historically, Republican policy aims to create a pro-business environment through tax relief. For example, reductions in corporate tax rates often benefit small businesses by enhancing profitability and flexibility.
Another area Republicans are likely to prioritize is domestic manufacturing and supply chain resilience, potentially reshoring key industries to bolster U.S. industry. While this could open doors for small manufacturers and suppliers, reshoring may come with added tariffs on imports, which can cut into the margins of small businesses reliant on overseas goods. For instance, 67% of small businesses report that rising costs for goods and materials are already a significant challenge, a figure that could grow if import tariffs increase (U.S. Chamber of Commerce, “Q4 2023 Small Business Index”) . Ultimately, finding a middle ground that supports local industry without undermining access to affordable goods will be key.
What a Democratic Win Could Bring to Small Businesses
If Democrats retain control, small businesses may experience expanded incentives for renewable energy, healthcare reform, and workforce protections. The Inflation Reduction Act (IRA), championed by the Biden administration, introduced tax credits for green energy adoption and funding for energy-efficient improvements. These incentives could benefit eco-focused small businesses and create savings for those adopting energy-efficient practices.
Democrats are also likely to push for expanded healthcare reforms, aiming to make coverage more accessible and affordable. While a positive step for employees, this may come with increased premiums for small businesses offering health benefits. Currently, 63% of small businesses cite healthcare costs as a major burden, underscoring the need for policies that balance accessibility with affordability (Kaiser Family Foundation, “Employer Health Benefits Survey”) .
Finally, labor standards and wage increases are likely to remain in focus under a Democratic administration. While this advocacy supports employee welfare, it also brings potential compliance and operational costs that could stretch small-business budgets. For small businesses, adapting to these shifts will require a proactive approach to both compliance and efficiency.
Strategies for Navigating the Election Season
With uncertainty on the horizon, small businesses can take actionable steps to weather the storm, no matter which party prevails in November. Here are five critical strategies for resilience:
1. Prioritize Cash Flow and Financial Flexibility
Inflation remains a primary concern for small businesses, with nearly 50% already raising prices to manage costs (Alignable, “The Impact of Inflation on Small Businesses”). By focusing on cash flow management, regularly reviewing budgets, and exploring flexible financing options, small businesses can remain adaptable. Alternative lending options like peer-to-peer financing can help keep businesses liquid, even as traditional loans become more costly with rising interest rates.
2. Invest in Talent Retention
Workforce shortages are taking a toll on 67% of small businesses (National Federation of Independent Business (NFIB), “Jobs Report”). With Republicans favoring relaxed labor laws and Democrats pushing for stronger worker protections, talent retention will be essential. Benefits such as flexible work schedules or professional development can attract and keep talent while managing costs effectively.
3. Embrace Technology and Automation
Rising operational costs mean efficiency is crucial. Investing in automation tools, like inventory management systems and payroll software, helps reduce labor expenses and streamline routine tasks. With 77% of small-business owners expressing optimism about future growth, adopting technology could become a powerful way to stay resilient amid uncertainty.
4. Stay Politically Engaged
For 51% of small-business owners, a candidate’s policy stance affects voting decisions (National Small Business Association (NSBA), “Small Business Policy Survey”). Staying informed about policy shifts and advocating for small-business interests ensures representation in decisions that impact daily operations. Joining NSBA and voting are ways to give small businesses a voice in shaping policies that affect them.
5. Prepare for Regulatory Changes
Whether through adjustments in tax policy, labor regulations, or environmental standards, the 2024 election will likely bring new compliance requirements. To avoid disruptions, small businesses should assess their operations regularly and stay up-to-date on potential policy impacts. NSBA membership can help, offering resources and advocacy to ensure that small businesses remain compliant and adaptable.
Engaging with the NSBA: A Pathway to Advocacy
The NSBA gives small businesses an avenue to directly influence the lawmakers who shape policy. Through the NSBA Leadership Council, business owners can participate in policy discussions, meet with policymakers, and attend national advocacy events, helping to create a powerful collective voice.
A Vision for the Future
With the 2024 election around the corner, small businesses stand at a pivotal moment. A Republican win could bring tax relief and a business-friendly regulatory approach, while a Democratic victory might support sustainability incentives and workforce protections. Both have unique implications for small businesses, underscoring the need for active engagement and advocacy.
The NSBA is committed to ensuring that small businesses continue driving America’s economy, regardless of the political landscape. By staying informed, engaged, and adaptable, these businesses can secure their place as a foundational force in our nation’s economy for generations. As we look to the future, the small business community has a powerful opportunity to shape its destiny through resilience and advocacy — ensuring a balance between growth, opportunity, and workforce stability.
