Fed Survey Reveals Declining Revenue and Growth for U.S. Small Businesses in 2024

The 2024 Small Business Credit Survey shows rising costs, uneven cash flow, and operational challenges hindering recovery efforts.

For the first time since 2021, more small businesses reported revenue declines than increases, with 41% seeing income shrink in 2024.
Only 19% of small businesses were classified as 'growing' in 2024, a drop from 22% in prior years and far below pre-pandemic levels.
Reaching customers and growing sales emerged as the top operational challenge, cited by 57% of firms, up from 53% in 2023.
Rising costs of goods, services, and wages were the most common financial concern, affecting 75% of businesses in 2024.
Supply chain issues eased, with only 29% of firms reporting challenges, but labor costs and uneven cash flow remain significant obstacles.