Small businesses play an integral role in the U.S. economy, providing jobs and services to millions of Americans. However, small business owners frequently face challenges, ranging from financial struggles to regulatory burdens. In 2024, the need for robust government support has become more apparent than ever. Whether through improved access to capital, workforce development, tax relief, or better access to technology, small businesses are calling for increased government assistance to help them thrive in a competitive environment. This article explores the key areas where small businesses are seeking support from federal and local governments.

Access to Capital and Financial Assistance

One of the most pressing needs for small businesses is access to capital. Many small businesses struggle to secure financing for day-to-day operations, let alone growth initiatives. Government programs, such as those provided by the Small Business Administration (SBA), have long been a crucial source of support. However, business owners argue that more needs to be done to modernize and expand these programs.

The State Small Business Credit Initiative (SSBCI), for example, has been instrumental in helping small businesses access loans and investments, particularly those hit hardest by the pandemic​. Additionally, the Biden administration has introduced new measures aimed at providing businesses with emergency funds and grants to weather economic downturns​. Yet, many businesses argue that the application process is too cumbersome, and they are advocating for streamlined procedures to ensure that funds reach the businesses that need them most.

Workforce Development and Labor Shortages

Another major issue facing small businesses is the ongoing labor shortage. Many small business owners are struggling to find qualified workers to fill open positions. In 2023, nearly 40% of small businesses reported difficulties in hiring, and this trend continues into 2024.

To address this issue, small business owners are pushing for more government-led job training programs and workforce development initiatives that can help fill the skills gap. Additionally, they are advocating for policies that allow them to offer competitive benefits, such as affordable healthcare and retirement plans, to attract and retain talent​. Without government support in these areas, many small businesses fear they will be unable to compete with larger companies that can offer more robust benefits packages.

Simplified Tax Policies and Incentives

Small businesses are also calling for simplified tax policies that reduce the regulatory burden they face. Many business owners argue that the current tax system is disproportionately complex for small enterprises, leading to significant administrative costs and challenges. As such, they are advocating for tax reforms that would level the playing field between small businesses and larger corporations​.

In addition to simplification, there is strong support for expanding tax credits and incentives, particularly those aimed at fostering innovation and promoting sustainability. Small businesses believe that these incentives can encourage investment in new technologies and green initiatives, helping them to grow and compete in a rapidly changing market.

Government Contracting Opportunities

Another area where small businesses are calling for support is in government contracting. Federal, state, and local governments are some of the largest purchasers of goods and services in the U.S., and small businesses want more access to these lucrative contracts. The National Defense Authorization Act (NDAA) has recently included reforms designed to help small businesses secure more government contracts. These reforms include increasing procurement goals for small businesses, especially for service-disabled veteran-owned small businesses (SDVOSBs)​.

Moreover, new provisions in the NDAA allow small businesses to leverage past performance from affiliate companies when bidding for contracts, making it easier for newer firms to compete​. Small businesses are also pushing for more transparency and faster payment processing for subcontractors working on government contracts.

Digitalization and Technology Integration

The rise of digital tools has transformed the way businesses operate, and small businesses are no exception. Many small businesses rely on digital platforms for advertising, project management, and payment processing, among other functions​. However, there is a growing demand for government support to help small businesses integrate these technologies effectively, especially as many struggle to keep up with larger competitors in terms of digital infrastructure.

Artificial intelligence (AI), for example, is increasingly being used by businesses to streamline operations and improve customer service. Yet, small businesses often lack the resources to implement these tools. Government assistance in the form of grants, training, and tax credits could help small businesses adopt new technologies and remain competitive in an increasingly digital marketplace.

Affordable Healthcare and Benefits

Access to affordable healthcare is a significant concern for small businesses. Many small business owners find it difficult to provide comprehensive healthcare plans to their employees, especially as healthcare costs continue to rise. Small businesses are advocating for changes to the Affordable Care Act (ACA) that would allow them to offer more affordable and flexible healthcare options.

In addition to healthcare, small business owners are calling for more support in providing retirement options for themselves and their employees. Unlike larger corporations, many small businesses lack the resources to offer pension plans or 401(k) programs. As a result, there is growing demand for government policies that make it easier and more affordable for small businesses to offer these benefits​.

Environmental Sustainability and Green Initiatives

As environmental concerns take center stage, small businesses are increasingly looking for ways to adopt sustainable practices. However, many lack the resources to invest in green technologies or transition to more environmentally friendly business models. To address this, small businesses are calling for government grants and tax incentives that encourage sustainability initiatives​.

Programs that support the adoption of renewable energy, waste reduction, and sustainable supply chains are particularly important for small businesses that want to contribute to environmental protection without sacrificing profitability​.

Bipartisan Support for Small Business Initiatives

Despite the political divisions that often characterize Washington, support for small businesses remains a bipartisan issue. In 2024, Congress is expected to continue its efforts to modernize the SBA and implement reforms aimed at helping small businesses thrive.

For example, there is broad support for SBA reauthorization, which would update and modernize the agency’s programs, many of which have not been reauthorized since the 1990s. In addition, both parties have expressed interest in policies that support small business workforce development, digitalization, and access to capital​. These bipartisan efforts signal that government support for small businesses will remain a priority in the years to come.

As we move further into 2024, small businesses continue to call for greater government support to overcome the challenges they face. From access to capital and workforce development to tax relief and digitalization, small businesses are advocating for policies that will allow them to compete on a level playing field with larger corporations. With bipartisan support for many of these initiatives, there is hope that government assistance will continue to play a pivotal role in the success of small businesses across the United States.