NFIB's Holly Wade talks about the creation of the Small Business Trends Survey and what it shows us in 50 years.
When created by NFIB, Small and Medium Enterprise Economic Trend Survey In October 1973, we probably never expected it to become such an important tool. Now, 50 years later, This research provides lawmakers, the media, economists, and others with insight into the most pressing issues facing small businesses and how business owners respond to larger economic and policy changes. We continue to provide understanding.
“Countless media outlets, from the largest national newspapers to smaller local sources, are currently covering this issue. Financial analysts believe in it, too,” said Holly Wade, executive director of the NFIB Research Center. “This study helps us understand the small business sector, which is a critical part of the U.S. economy. After all, as small businesses evolve, so do countries and every community. It is.”
NFIB has launched a small business survey. This is a first-of-its-kind study designed by NFIB Chief Economist Bill Dunkelberg. The survey, released quarterly, asks a variety of questions about financing, capital expenditures, sales, and business performance. When the NFIB released its first survey results 50 years ago, it was clear that America was eager to hear from small business owners.
“Prior to the first publication of SBET in the third quarter of 1973, virtually all data on the American economy focused on large corporations,” Wade explained. “But small businesses have always been, if not more important. They create two out of every three net new jobs. They account for half of the U.S. GDP. The third largest economy in the world. Plus, every big company starts a small business!”
This study shows that small business support policies are working. In the 1980s, small business optimism soared to record highs, thanks in large part to smart policies that unshackled Main Street (the Reagan tax cuts). Optimism reignited in the 2010s, when tax cuts and deregulation breathed new life into the small business economy. But in the early 2010s and now, the optimistic outlook was not so bright.
“Small business optimism has now been below the 50-year average for the 21st consecutive month,” Wade said. “Something needs to change. And this study makes it clear where Congress needs to start. Small businesses need to make the 20% small business deduction permanent before it expires in 2025. As that deadline approaches, small businesses are already constraining investment and growth.Giving them permanent relief will hurt the future of Main Street, millions of families, and It’s essential to our entire economy.”
Lawmakers need to recommit to a new era of policies that strengthen Main Street and every community in the country. The health of the U.S. economy depends on small businesses. With the right federal and state policies, small businesses can do just that.