Rising energy costs are hurting Wisconsin small business owners’ ability to create jobs and grow
MADISON, WI (Feb. 27, 2026) – The National Federation of Independent Business (NFIB), Wisconsin’s leading small business advocacy organization, released its new Small Business Energy Survey. The report is based on a nationwide survey of small business owners, providing insight into the types of energy used and how energy costs impact business operations.
“Anyone running a small business in Wisconsin will tell you that rising energy costs are hurting their ability to operate and grow,” said NFIB Wisconsin State Director Luke Bacher. “Earlier this month, we heard talk in Madison of more investments in energy alternatives; however, shouldn’t we instead look for ways to help our small businesses that are burdened with high utility bills and regulations? Our Main Streets are the backbone of our economy. Wisconsin cannot succeed if our small business community isn’t thriving.”
“Small businesses are highly exposed to energy cost increases, have limited flexibility to reduce costs, and experience direct operational and financial impacts as a result,” said Holly Wade, Executive Director of NFIB’s Research Center. “As owners work to absorb the impact of energy costs into their business, it can often limit their ability to hire, retain talent, and grow.”
The survey shows that small businesses are deeply impacted by energy use and its costs. Owners use a variety of energy sources in operating their businesses, all of which tend to present at least moderate challenges. The data highlights the complexities that small business owners face when managing cost increases and reliability issues for electricity, which is the most common energy source.
Key Findings Include:
- Across all major energy sources, about 80% of small business owners reported that energy costs significantly (very or moderately) impact the business.
- Small businesses owners have few good ways to manage increased energy costs. Lower profits (58%) and higher prices (52%) are the most common ways small business owners are absorbing increased energy prices.
- Energy costs related to heating and cooling are the most common primary energy cost, followed by operating equipment and/or processes, and in third place, vehicles.
- Two-thirds of small business owners report that energy efficiency is at least somewhat important when replacing vehicles. However, adoption of electric and hybrid vehicles remains very limited.
- In addition to investing in more fuel-efficient vehicles, many owners adjust business operations to curb fuel costs.
- Examples of this include utilizing fewer vehicles (or less frequently), rescheduling or changing driving routes, more frequent maintenance, and negotiating with fuel suppliers.
Methodology
This survey was conducted with a random sample of 20,000 NFIB members from NFIB’s membership database of around 300,000 small business owners. The survey was conducted by email from Nov. 3 – Nov. 14, 2025. NFIB collected 775 responses.
To download NFIB’s Small Business Energy Survey, click here.
