Small Business Week Highlights the Nightmare Entrepreneurs Face in Democrat-Led States 

Washington D.C. – Running a small business is the American Dream for many across the country, but for small business owners in Democrat-led states, that dream has become a nightmare. Small businesses resilient enough to survive lockdowns and ever-changing COVID restrictions imposed in liberal-led states are now being hammered by inflation and shortages fueled by the tax-and-spend agenda of Joe Biden and his state Democrat allies.

The story is remarkably different in states with Republican-controlled legislatures. By avoiding lockdowns, cutting regulations, and keeping costs low, Republican-led states are experiencing economic revivals powered by small businesses. According to a recent survey of 700 business leaders, 9 of the 10 most business friendly states are GOP-led. With 18 Republican-led states cutting taxes in the last two years, small businesses know which states have their interests in mind. 

“Democrats’ pursuit of expanding government and raising taxes has been nothing short of a disaster for small businesses facing a relentless wave of obstacles in their fight to return to normal after the pandemic,” said RSLC Deputy Communications Director Mason Di Palma. “Small business owners in Democrat-led states are increasingly asking themselves why they are struggling when their counterparts in Republican states are enjoying lower taxes, business friendly regulations, and increasing profits. Republican-led states will continue to welcome with open arms small businesses fleeing blue states in search of a home where the American dream is alive and well.” 

BACKGROUND 

Several recent surveys of small business owners show that inflation is a major concern.  

• A survey of 1,000 small business owners found that:
  • 88% of business owners say inflation is currently impacting their business
  • 76% say supply chain issues are impacting their business
  • 31% are confident the national economy will improve, down from 50% in 2021
• A similar survey of small business owners discovered that:
  • 72% of small businesses are increasing prices due to inflation to keep their doors open
  • 35%, said they’ve reported lower profits due to increased costs of materials 

The data is backed up by the small business owners in Democrat-led states who are sounding the alarm about the challenges they are facing.  

• Colorado small business owner Heidi Ganahl recently wrote an op-ed in the Denver Gazette pleading with state leaders to stop mimicking the failed policies of Joe Biden that have pushed the 653,000 small businesses in the Centennial State to the brink.
  • “Small businesses need a big break right now, and temporary breaks from fees won’t cut it. Colorado has dropped from the 11th most business-friendly state to the 29th, and that is largely due to concern about where our policies are headed, especially when it comes to rising costs and increasing regulations.”
     
• Maryland small business owner Kim Shanhan echoed similar concerns in The Daily Record.
  • “Shanahan said her biggest cause of worry is uncertainty: Will inflation or fuel costs rise even more? Will supply chain issues improve? Is the country headed for a recession similar to the one in 2008?” 

Small business owners, however, are getting relief in Republican-led states, 18 of them cut taxes in the last two years. Four of these states (Idaho, Iowa, Missouri, Utah) took direct action to deliver relief to businesses.

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