Small businesses in the U.S. are facing big challenges. Health insurance costs keep rising. Premiums for firms with fewer than 50 employees went from $20,236 in 2019 to $25,167 in 2024 (https://www.kff.org/report-section/ehbs-2024-section-1-cost-of-health-insurance/). The average family premium was $7,529 in 2023 (https://www.commonwealthfund.org/publications/issue-briefs/2024/dec/trends-employer-health-insurance-costs-2014-2023). Deductibles are high too, averaging $5,074 a year per employee (https://www.commonwealthfund.org/publications/issue-briefs/2024/dec/trends-employer-health-insurance-costs-2014-2023).
Credit card fees are also a problem. In 2024, U.S. businesses paid $187.2 billion in swipe fees (https://nrf.com/advocacy/policy-issues/swipe-fees). Small businesses often pay 2% to 4% per transaction, which reduces profits (https://www.smallbusinessrising.net/swipe-fees-campaign).
The subscription economy is growing fast. It was $207.7 billion in 2024 and could reach $232.2 billion in 2025 (https://market.us/report/subscription-economy-market/). Subscriptions are convenient for customers, but they can hurt small businesses that rely on regular sales.
These trends show small businesses are being pushed aside. Higher costs, fees, and new consumer habits favor bigger companies.
