What's Holding Back Small Businesses?

The biggest single problem facing Americaâ??s small businesses isnâ??t taxes or overregulation. Itâ??s low demand, according to a new report released by the National Federation of Independent Business.

Thirty-one percent of small businesses surveyed by the N.F.I.B. said that â??poor salesâ? are their companyâ??s â??single most important problem.â? The other options included were competition from large businesses, insurance costs and availability, financing and interest rates, government requirements and red tape, inflation, quality of labor, cost of labor and â??other.â?

Hereâ??s a chart breaking down what percent of small businesses cited each of these problems as their biggest challenge, going back to 1986:

Much of the debate about how to spur growth and encourage hiring has focused on making the tax picture temporarily more business-friendly. But as you can see, the portion of small businesses citing taxes as their superlative problem has remained about the same â?? mostly in the 17-22 percent range, say â?? for about a decade.

Additionally, lending help for small businesses is another key stimulative policy in play, and meanwhile financial and interest rate concerns are a comparably negligible concern.

By contrast, the share of companies saying the poor sales is their main challenge has about doubled since the downturn began.

Exactly how to address soft demand, though, is even more complicated and contentious than supply-side policies like cutting taxes or providing interest-free loans.

The impact of the 2010 census on employment seems to contradict the Keynesian view that government hiring has a multiplier effect, an economist writes.

More companies say their main problem is poor demand, not high taxes.

President Obamaâ??s nominee as chairman of the Council of Economic Advisers combines sophisticated economics research with a keen appreciation of public policy, an economist writes.

A new report on global wealth finds that, for once, the poor are getting richer faster than the richer are getting richer.

Economic upturn is no way to describe the current state of affairs, an economist writes, because unemployment remains so high.

The health care overhaul is unlikely to endanger brokers, but their role in bringing together providers and the insured will continue to raise potential conflicts, an economist writes.

President Obama should push harder for medium-term deficit reduction and comprehensive tax reform, an economist writes.

Military spending was not what ended the Great Depression, and now only gets in the way of expanded private-sector employment, an economist writes.

There are certain engineering jobs that cannot be outsourced â?? and not because the talent doesnâ??t exist, or is more expensive abroad, but because the employer may be prohibited from doing so.

California, Florida and Michigan â?? all with terrible unemployment problems â?? may be victims of their past success, an economist writes.

Catherine Rampell is the economics editor at nytimes.com.

David Leonhardt writes the Economic Scene column, which appears in The Times on Wednesdays.

Motoko Rich is an economics reporter for The New York Times.

Michael Powell is an economics reporter for The New York Times.

Steven Greenhouse writes about labor and workplace issues for The New York Times.

Liz Alderman writes about European economics, finance and business from Paris.

Sewell Chan writes about economic issues from Washington D.C.

Jack Ewing writes about European economics and business from Frankfurt.

Economists offer readers insights about the dismal science.

Economics doesnâ??t have to be complicated. It is the study of our lives "â? our jobs, our homes, our families and the little decisions we face every day. Here at Economix, David Leonhardt, Catherine Rampell and other contributors will analyze the news and use economics as a framework for thinking about the world. We welcome feedback, at economix@nytimes.com.

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Apture allows readers to dig deeper into a subject without ever leaving the blog post. When you click on any link marked by the icons , , or , you will be able to view video, reference materials, images and other related media. Please e-mail your feedback and thoughts on this feature to apture@nyt.com.

An accounting of the governmentâ??s rescue package.

Three economists explain what worked and what didn't.

A map of unemployment rates across the United States, now through January.

Faces, numbers and stories from behind the downturn.

A series about the surge in consumer debt and the lenders who made it possible.

A series exploring the origins of the financial crisis, from Washington to Wall Street.

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