Voice of Main Street: Entrepreneurs worry about impact of tariffs, other disruptive acts, prefer small business friendly policies

As a new Congress and administration have come into power and dramatically changed a number of federal policies, it’s important that policymakers take the views of entrepreneurs into account. One major change on the minds of small business owners is the president’s announcement of proposed 25% tariffs on imports from Canada and Mexico and recently enacted 10% tariffs on Chinese imports. The administration has also begun to increase mass deportations, leading to workplace raids by U.S. Immigration and Customs Enforcement agents. These policies are poised to have a dramatic impact on small businesses’ bottom lines, as well as much needed workers, the supply chain and our economy as a whole.

This report is the first in Small Business Majority’s new quarterly Voice of Main Street opinion poll series, which assesses the challenges and opportunities that entrepreneurs in our network are facing. The report reveals that small businesses are worried about various proposals and actions from the new administration. In particular, a large majority is concerned about the negative impact of tariffs on their business (53%) and the U.S. economy (77%). Business owners are also concerned about the negative impact of mass deportation policies on their business or their suppliers’ businesses (37%) and on the U.S. economy (69%). 

Instead of pursuing policies that could devastate small businesses and the economy, small business owners want the new administration and Congress to focus on policies that would actually help their businesses better succeed. Entrepreneurs say that their top policy priorities include tax incentives targeted to small businesses, ensuring fair competition, leveling the playing field with larger companies, increased access to small-dollar business loans, and increased access to affordable healthcare options. Federal policymakers must take small business owners’ policy priorities into account and enact policies that benefit America’s innovators and job creators.

Key findings:

• More than half (53%) of small businesses are concerned about tariffs negatively impacting their business, and nearly 8 in 10 (77%) are concerned about tariffs negatively impacting the U.S. economy.

• More than one-third (37%) of entrepreneurs are concerned about mass deportation policies negatively affecting their business or their suppliers’ businesses, while 69% are concerned about the negative impact on the U.S. economy as a whole.

• Increased tax credits that lower healthcare premiums for the Affordable Care Act (ACA) marketplaces are set to expire at the end of 2025. Nearly 7 in 10 small business owners (69%) support extending the premium tax credits.
• Small businesses have several top priorities for the new Congress and administration in 2025, including tax relief or incentives for small businesses (88%), addressing fair competition and leveling the playing field with larger companies (76%), increasing access to low, interest small-dollar loans under $100,000 and/or grants (68%) and increasing access to affordable healthcare options for themselves and their employees (66%). 
• Over the past three months, business revenues have decreased for a plurality (42%) of entrepreneurs. Revenues stayed the same for around one-third (34%) and increased for around one-quarter (24%) of small businesses.
• This comes as business expenses have increased over the past three months for 62% of small businesses. Costs stayed the same for 29% of small businesses and decreased for only 9%.
• A majority of (58%) entrepreneurs remain optimistic about their business prospects over the next six months, while 18% are pessimistic and 21% feel neutral. This marks a decline in optimism from previous surveys. Moreover, almost two times as many entrepreneurs report a decline in business revenues versus an increase.