Small-Business Optimism is High, But Significant Challenges Lie Ahead

Tuesday, January 21, 2025

Daniel Johns was quoted in a Philadelphia Inquirer article discussing the optimism among small business owners due to pro-business policies, while also noting challenges such as inflation, rising interest rates, and regulatory uncertainty. Small business optimism in the U.S. is at a six-year high, with the National Federation of Independent Businesses reporting that business owners are hopeful about the new administration’s pro-business agenda, which could lead to economic growth, lower inflation, and improved business conditions.

Despite this optimism, high inflation continues to outpace wage growth, potentially affecting consumer spending in 2025. Businesses also face rising interest rates, tariffs, and uncertainty around tax policies, with some proposed changes facing congressional opposition. Additionally, regulatory concerns over worker classifications and stricter immigration policies could worsen labor market pressures. Daniel noted, “State-level trends may drive changes in paid leave, minimum wage, and AI regulation,” and he advised employers “to stay informed about both federal and state-level legislative shifts.”

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