by Ethan Faverino | Oct 16, 2025 | Economy, News
By Ethan Faverino |
The National Federation of Independent Business (NFIB) Small Business Optimism Index dropped 2 points in September to a score of 98.8, marking the first decline in three months.
Despite remaining above the 52-year average of 98, the dip reflects growing concerns among small business owners grappling with inflationary pressures, supply chain disruptions, and persistent labor shortages. The Uncertainty Index climbed 7 points to 100, making it the fourth-highest reading in over 51 years.
NFIB Chief Economist Bill Dunkelberg said, “Optimism among small business owners decreased in September. While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges. Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations.”
In Arizona, small business owners echoed with national concerns: “Unfortunately, Arizona small business owners are facing the same sort of challenges we see in the national survey,” NFIB State Director Chad Heinrich said. “The ongoing labor shortage and inflationary pressures are giving small business owners pause in this economy. They’re focused on meeting their customers’ needs and retaining their workforce.”
Key findings from the September survey include:
- Inflation and Supply Chains: Inflation emerged as a significant issue, with 14% of owners citing it as their top business problem, up 3 points from August. A net 24% raised selling prices, up 3 points, and a net 31% plan to increase prices in the next three months, up 5 points. Supply chain disruptions impacted 64% of owners, a 10-point jump from August.
- Labor Market Struggles: 32% of owners reported unfilled job openings, unchanged from August. Of the 58% that are hiring or trying to hire, 88% faced a shortage of qualified applicants. A net 16% plan to create jobs in the next three months (up 1 point) is the highest since January 2025. Labor quality is tied with taxes as the top concern, cited by 18% of owners.
- Inventory and Sales: A net negative 7% viewed current inventory as “too low,” down 7 points—the largest monthly decline in the survey’s history. A net negative 7% reported higher nominal sales over the past three months, up 2 points, but a net 8% expect higher real sales volumes (down 4 points).
- Earnings and Investments: Actual earnings improved, with a net negative 16% reporting profit trends, up 3 points, and the highest since December 2021. Among those with lower profits, 33% cited weaker sales and 17% pointed toward material costs. Capital outlays remained steady, with 56% of owners reporting expenditures, primarily on equipment and vehicles.
- Financing Challenges: A net 7% reported tougher loan conditions, up 4 points and the highest this year. The average rate on short-maturity loans rose 8.8%. Regular borrowing increased, with 26% of owners reporting loans, up 3 points.
Despite these challenges, 57% of owners rated their business health as “good,” up 3 points, while 11% said “excellent,” down 3 points.
Taxes and labor quality tied as the top concerns, each cited by 18% of owners, while poor sales (10%) and government regulations (6%) remained notable issues.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Oct 13, 2025 | Economy, News
By Ethan Faverino |
In a landmark victory for small businesses, Congress has made the 20% Small Business Tax Deduction, also known as Section 199A, a permanent qualified business deduction, ensuring long-term tax certainty for Main Street.
This critical provision allows small businesses to deduct up to 20% of their income, empowering mom-and-pop shops to grow, invest in their workforce, and play their part in giving back to the community.
The decision, signed into law by President Trump, averts a massive tax hike that would have impacted over 33 million small business owners nationwide at the end of 2025.
Making the Small Business Tax Deduction permanent changes the game for Main Street. The tax certainty provided by Congress ensures small businesses can thrive, hire more workers, and compete with larger corporations.
Since its introduction in 2017, the deduction has leveled the playing field for nine out of ten small businesses that file as pass-through entities. Recent NFIB surveys show growing confidence, with small business optimism reaching a five-month high.
The new tax law also includes pro-small business provisions, such as permanent extensions of the 2017 marginal tax rates, preventing up to a 4% tax hike for small businesses and employees.
Enhanced expense and depreciation rules under Section 179 and 168(k) enable business owners to confidently invest in growth, such as making large purchases. Additionally, increased reporting thresholds for IRS forms 1099-K, 1099-NEC, and 1099-MISC reduce paperwork burdens for businesses using platforms like Venmo or PayPal or engaging independent contractors.
The permanent estate tax exemption further supports owners looking to pass their businesses to the next generation or keep them locally owned.
National Federation of Independent Business (NFIB) State Director Chad Heinrich said, “An NFIB-commissioned study by EY found that the Small Business Tax Deduction will increase Arizona’s economic activity by more than $1.4 billion annually, resulting in the creation of 26,000 jobs each year. That means more, good-paying jobs for hardworking Arizonans.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | May 7, 2025 | Economy, News
By Matthew Holloway |
The latest job report from the National Federation of Independent Business (NFIB) shows that 34% of small business owners (seasonally adjusted) reported that despite having open positions in April, they could not find employees to fill them. Chad Heinrich, state director for NFIB in Arizona, offered some suggestions for Arizona lawmakers to address the situation and urged the passage of AZ Senate Bills 1069 and 1215.
“Arizona’s small businesses are the foundation of our economy, and our state has a chance to lead the way in empowering them,” Heinrich said in a statement. “Lawmakers have already done good work keeping taxes and regulations in check. Now, I urge them to pass Senate Bills 1069 and 1215. These two measures will lift a significant recordkeeping burden from Arizona’s smallest businesses and safeguard legal proceedings from foreign entity involvement.”
Senate Bill 1069 sponsored by AZ Senator JD Mesnard (R-LD13) would, if enacted, increase the Business Personal Property Tax exemption to $500,000 per taxpayer, relieving the tax burden on small business owners and “reduce record-keeping and compliance costs enormously,” according to the NFIB.
The bill was passed by the Senate 17-9 with four Senators not voting and passed the House Ways and Means Committee on March 5th.
The second measure, Senate Bill 1215, proposed by AZ Senate President Pro Tempore Vince Leach would require the disclosure of third-parties sponsoring predatory lawsuits against Arizona small business owners and was passed by the House Judiciary Committee on March 26th and is pending consideration by the House Rules Committee. The bill is also supported by the Arizona Chamber of Commerce & Industry, the Arizona Manufacturers Council, the Arizona Lodging & Tourism Association, and the Arizona Trucking Association.
Courtney Coolidge, executive vice president of the Arizona Chamber of Commerce & Industry said in a February statement, “Third party litigation funding has grown to an estimated $15 billion industry in the U.S. Essentially what happened is funders pour money into lawsuits in exchange for the settlement. This is a simple transparency bill to ensure transparency in our courts, protect litigants and safeguard against foreign influence. This is not just an Arizona issue; several states have passed this with bipartisan support.”
Chief Economist Bill Dunkelberg explained the NFIB report’s findings saying, “Small business owners remained open to hire and grow their workforce in April. While the percent of open positions decreased a bit, Main Street firms are still struggling to find qualified applicants for their plentiful open positions.” Per the NFIB report, the percentage of unfilled job openings spiked in 2021-22 and have returned to the lowest level observed since January 2021.
Per the NFIB report, the percentage of unfilled job openings spiked in 2021-22 and have returned to the lowest level observed since January 2021 with the largest concentration of openings in construction, transportation, and manufacturing.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Matthew Holloway | Feb 25, 2025 | Economy, News
By Matthew Holloway |
Arizona State Rep. Jeff Weninger (R-LD13) has targeted the hidden fees—also known as interchange fees—which are imposed by credit card companies every time a card is used for payment. These fees are charged on every transaction and can range from 1% to 5%. The lawmaker is calling for these fees, which are charged on transaction totals, including taxes, to be reformed to include only pre-tax totals.
Weninger penned an op-ed with the straightforward message that “It’s time to wipe the swipe on taxes.” He called upon members of the Arizona House of Representatives to support HB2629, legislation he has sponsored to force credit card companies to eliminate swipe fees on sales taxes.
He wrote in part, “The credit card industry is dominated by two major players—Visa and Mastercard—who control 90% of payment processing transactions outside of China. These companies are raking in record profits, while Arizona businesses are left footing the bill for an unfair, hidden charge.
“HB2629 will stop this practice and ensure Arizona businesses and consumers are treated fairly. By eliminating swipe fees on sales taxes, we can keep more money in our state’s economy, help small businesses grow, and prevent credit card companies from profiting off of money that should go back to our communities.”
The National Federation of Independent Business (NFIB) announced its support for the bill with NFIB State Director Chad Heinrich explaining in a statement, “HB 2629 will protect small businesses and keep more resources in Arizona for Arizonans. Today, millions of dollars, which could be better spent in Arizona on higher employee wages, better benefits, and business expansion, are instead being sent to out-of-state banks and major credit card companies that profit off Arizona state and local taxes.”
As noted in Weninger’s op-ed, Arizona businesses and consumers combined paid out over $217 million in interchange fees in 2023. According to Weninger, it’s “a fee on a fee that never should have existed in the first place.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Daniel Stefanski | Sep 24, 2024 | Economy, News
By Daniel Stefanski |
A leading small business advocacy organization has presented several Arizona lawmakers with its top award.
Earlier this summer, the National Federation of Independent Business (NFIB) presented a handful of Arizona legislators with its Guardian of Small Business Award. The individuals recognized with the award were as follows:
- Speaker of the House Ben Toma
- Representative David Livingston
- Representative Travis Grantham
- Senate President Warren Petersen
- Senator J.D. Mesnard
- Senator T.J. Shope
“These six lawmakers have gone above and beyond on behalf of Main Street Arizonans,” NFIB State Director Chad Heinrich said. “In this difficult economy, where costs continue to go up and open positions remain unfilled, it’s incumbent on lawmakers to not make it more difficult to own and operate a small business here in Arizona. Our members are grateful for each of these lawmakers’ commitment to free enterprise and sound policy.”
NFIB presented the award to Petersen in August.
NFIB presented the award to Shope in August.
NFIB presented the award to Mesnard in August.
NFIB presented the award to Toma earlier this month.
Toma responded to the award, stating, “Thank you. It is a great honor to be recognized by those dedicated to protecting and promoting small businesses.”
According to its website, “NFIB is the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
