Small businesses in the United States are encountering significant obstacles that threaten their sustainability. Healthcare costs have escalated, with premiums for small firms increasing from $20,236 in 2019 to $25,167 in 2024 (https://www.kff.org/report-section/ehbs-2024-section-1-cost-of-health-insurance/). Additionally, the average annual family premium for workers at small firms was $7,529 in 2023 (https://www.commonwealthfund.org/publications/issue-briefs/2024/dec/trends-employer-health-insurance-costs-2014-2023). These rising costs are compounded by high deductibles, averaging $5,074 annually for small firm employees (https://www.commonwealthfund.org/publications/issue-briefs/2024/dec/trends-employer-health-insurance-costs-2014-2023).
Concurrently, small businesses are burdened by substantial swipe fees. In 2024, U.S. businesses paid a record $187.2 billion in credit card and debit card swipe fees (https://nrf.com/advocacy/policy-issues/swipe-fees). These fees, often ranging from 2% to 4% per transaction, significantly impact small enterprises (https://www.smallbusinessrising.net/swipe-fees-campaign).
The subscription economy is also on the rise, with the U.S. subscription economy valued at approximately $207.70 billion in 2024 and projected to grow to $232.21 billion by 2025 (https://market.us/report/subscription-economy-market/). This shift toward subscription-based models is altering consumer behavior and posing challenges for traditional small businesses.
These factors collectively suggest that small businesses are not merely facing incidental challenges but are being systematically marginalized in an evolving economic landscape.
