As election season draws near, there’s a palpable tension among small business owners. Their concerns extend beyond the daily challenges of running a business — they’re now keenly observing how the political landscape might affect their livelihoods. Yet, despite this interest, there’s a growing sense of skepticism. Small business owners, long seen as the backbone of local economies, are increasingly unsure whether either political party truly has their best interests at heart.
This growing doubt reflects not just political disillusionment but also the evolving challenges of the business environment in a rapidly changing world.
The Political Climate: A Double-Edged Sword
Small businesses are often seen as the embodiment of the American Dream — self-made success through hard work and innovation. But this dream can be heavily influenced by external forces, especially political ones. With changing tax laws, regulations, trade policies, and economic stimuli often riding on election results, small business owners understand that politics can make or break their operations.
Yet, while small business owners are highly invested in the outcome of the election, many feel left out of the conversation. This sentiment isn’t new, but it’s intensified in recent years. Increasingly, business owners feel like both major political parties have focused their efforts elsewhere, catering to corporate giants or specific interest groups, rather than the small and mid-sized businesses that drive much of America’s economy.
One owner of a family-owned hardware store put it succinctly: “It feels like every election season we’re talked about but never really heard. Politicians love to tout their support for small businesses, but when it comes down to actual policies, we’re often left dealing with one-size-fits-all regulations that make it harder for us to compete.”
Key Concerns for Small Businesses in the Upcoming Election
While the issues small business owners are watching in the election are diverse, there are a few common themes that stand out.
1. Taxes and Regulations
One of the primary concerns is taxation. Many small business owners believe that tax policies disproportionately favor large corporations. Larger companies can often take advantage of loopholes, deductions, and subsidies that smaller businesses simply can’t access. For example, while small business owners struggle with payroll taxes, larger companies often benefit from complex tax strategies that lower their overall burden.
It’s not just about the tax rates themselves, but the compliance and regulatory complexity. One restaurant owner in Chicago shared her frustration: “I spend as much time worrying about paperwork and tax filings as I do about running my restaurant. If politicians could streamline the process, it would be a game-changer for small business owners like me.”
Additionally, the looming prospect of changes to tax deductions, estate taxes, and capital gains taxes means small businesses must keep a close eye on the political conversation. The uncertainty of the election outcome often leaves businesses in a state of limbo, unsure of how to plan for the future.
2. Healthcare
For many small business owners, the rising cost of healthcare is a perennial concern. While large corporations may have the resources to offer comprehensive healthcare packages, smaller businesses often struggle to provide affordable options for their employees. The Affordable Care Act (ACA) has had mixed reactions in the small business community — while some see it as a step toward ensuring employee well-being, others feel it has added an unsustainable financial burden.
Regardless of where they stand on the ACA, many small business owners are anxious about the future of healthcare policy. One owner of a small construction firm noted, “We want to offer good benefits to our employees, but every year healthcare gets more expensive. If the government doesn’t address this, it’s going to be even harder for us to compete for talent.”
3. Access to Capital
Access to capital remains a major issue for small businesses. While big corporations have a variety of funding sources, small businesses often rely on traditional bank loans. The economic fallout from the COVID-19 pandemic has only heightened concerns about funding, with many small businesses still reeling from the financial hit.
The Paycheck Protection Program (PPP), which was part of the federal government’s pandemic response, helped many small businesses stay afloat. However, it also highlighted the disparity in how funding is distributed. Many smaller businesses struggled to navigate the application process or were sidelined as larger companies quickly accessed funds. Now, as the country continues to recover, small businesses are watching closely to see what policies will be introduced to ensure they have fair access to loans and grants.
4. Supply Chain Issues
Supply chain disruptions, initially triggered by the pandemic, remain a persistent problem for small businesses. From retail to manufacturing, small businesses often lack the leverage to negotiate favorable terms or quickly adjust to supply shortages in the way that large corporations can. This puts them at a significant disadvantage.
Looking toward the election, many small business owners are hoping for policies that will strengthen domestic production and address these supply chain issues. However, there’s skepticism about whether the government can truly enact changes that will help small businesses. One shop owner mentioned, “We hear a lot of talk about bringing manufacturing back to America, but what we really need is actionable support that ensures small businesses can be part of the solution, not just the big companies.”
The Trust Deficit
The skepticism small business owners feel toward politicians is largely fueled by experience. Over the years, they’ve seen promises come and go, yet many feel they’ve been left to fend for themselves. While politicians on both sides of the aisle frequently praise small businesses as “the backbone of the economy,” there’s a gap between rhetoric and action.
One contributing factor is the perception that both parties prioritize the needs of large corporations or wealthy donors over the concerns of everyday entrepreneurs. One survey of small business owners revealed that many feel their needs are often overshadowed by those of large corporations that wield more political influence.
In fact, some business owners feel that government intervention has sometimes worsened their situation. For example, well-intended regulations aimed at corporate practices can inadvertently harm smaller businesses that don’t have the resources to navigate complex legal requirements. While a large company might have an entire department dedicated to compliance, a small business owner wears many hats — from CEO to accountant — and may struggle to keep up.
This growing mistrust isn’t just directed at one party. It spans the political spectrum. Whether it’s concerns about over-regulation from one side or fears of corporate favoritism from the other, small business owners are increasingly wary of promises made on the campaign trail.
Where Do Small Business Owners Turn?
Despite their frustrations, small business owners can’t afford to ignore the political landscape. Elections bring about change, and those changes can have a direct impact on their bottom line. For many, the election is less about choosing a party they fully support and more about mitigating potential damage.
The rise of independent and third-party candidates has caught the attention of some small business owners who feel disillusioned by the traditional two-party system. However, many remain pragmatic. They recognize that the two major parties still hold the keys to significant legislative changes and economic policies that will affect their businesses.
For small business owners, advocacy and local political engagement are becoming increasingly important. By working with local chambers of commerce, industry associations, and small business coalitions, they hope to influence policy decisions in their favor. In recent years, these groups have become more vocal in pushing for reforms that address the unique challenges small businesses face.
A Pragmatic Approach to the Election
As the election approaches, small business owners are watching closely. However, their interest is tempered with a sense of realism. They understand that no politician or party can solve all their problems. Instead, they’re looking for candidates who offer practical solutions — whether that means reducing regulatory burdens, improving access to healthcare, or ensuring fair access to capital.
The skepticism that many small business owners feel toward politics may be well-founded, but it hasn’t led to apathy. Instead, small business owners are adopting a pragmatic approach. They know that their survival and success may depend on how well they navigate the political landscape, even if they don’t fully trust the system.
In a world where the political and economic environments are increasingly intertwined, small business owners are keenly aware that their future is tied to the outcome of the election. Yet, they remain cautious, balancing their hopes for supportive policies with a realistic understanding of the challenges ahead.
