Detroit City Wire

Small business owners are more interested in the 2024 election than the previous presidential cycle, according to the Q3 MetLife and U.S. Chamber of Commerce Small Business Index. The survey indicates that 71% of small business owners are more engaged this time around, with 42% expressing much higher interest compared to 2020.

A significant majority, 78%, believe that the economy and inflation should be top priorities for the next president and Congress, a notable increase from Q3 2020. Additionally, nearly nine in ten (88%) emphasize the importance of not raising business taxes.

“Main Street businesses know that policies and regulations coming out of Washington have a direct impact on their bottom line, so they’re paying attention to the candidates’ views on the economy, inflation, and taxes, in particular,” said Tom Sullivan, Vice President of Small Business Policy at the U.S. Chamber of Commerce. “This quarter’s survey data shows strong confidence from small businesses around revenue and hiring heading into the election, and they want to make sure that growth continues.”

The survey also highlights concerns about partisan gridlock in federal government; 84% see it as a serious issue. Three in four (75%) believe it is crucial for political leaders to compromise to achieve progress, up from 68% before the 2020 election.

The Small Business Index has tracked perceptions since Q2 2017. This quarter's score reached 71.2, nearing its highest point of 71.7 recorded in Q1 2020 before the pandemic.

“As we head into the final quarter of 2024, it is encouraging to see the continued optimism of small business owners driving the Index score to near pre-pandemic highs,” said Bradd Chignoli, executive vice president and head of Regional Business & Workforce Engagement. He advised small business owners looking to recruit new staff to focus on offering purposeful work, training programs, wellness initiatives, and benefits.

Optimism among small businesses is driven by positive expectations for future revenue and staffing plans. Nearly three in four (73%) expect revenue growth over the next year—the highest percentage since this survey began in 2017—and more than two in five (44%) plan to increase staff.

“The local economy feels strong; restaurants and shopping centers are busy. I’ve been surprised by how much construction has continued even with interest rates high,” said Bryan Owen, Co-CEO of Between Pixels in Marietta, Georgia.

Despite their optimism about revenue growth and hiring plans, inflation remains a primary concern for small business owners for the ninth consecutive quarter. There are mixed perceptions about local versus national economic conditions: while 38% rate their local economy as good compared to 34% who view it poorly; nationally more small businesses have a negative outlook (48%) than a positive one (35%).