Republicans Must Court Small Businesses to Win 2026 Midterms

Republicans need to court America's small businesses to win the 2026 midterms.

The White House launched National Small Business Week this week to mark their role in the economy and jobs. Small business owners will decide the November outcomes.

The U.S. has more than 36.8 million small businesses, defined as companies with 500 or fewer employees.

These businesses employ 46% of the private sector workforce, or more than 62 million jobs. Over 96% have fewer than 10 employees, including grocery stores, laundromats, doctors, lawyers and accountants. They created 20.7 million jobs from 1996 to 2024.

Companies with 5-9 employees hold more patents per employee than any other group. About 98% of U.S. manufacturers have fewer than 500 employees, per nonprofit SCORE.

Small business owners face heavy tax burdens. Federal, state and local taxes take 20-30% of their earned income, according to the Tax Foundation. Twenty-five percent spend more than $10,000 yearly on tax and regulatory compliance. Owners average 200 to 300 hours a year on such tasks, equal to 32 full business days.

Trump's tax law brought major gains. It raised the Section 179 expensing cap to $2.5 million and restored 100% bonus depreciation for equipment. The law made permanent the 20% Qualified Business Income deduction for pass-through entities. Democratic repeal of these as part of a 'tax the rich' push would hit small businesses hard.

A Stanford study found business owners 18 percentage points more likely to vote Republican than non-owners. Their experiences shape political views. High taxes push them to Republicans. Relief from taxes, regulations and shoplifters draws support.

The study showed doctors who own practices 2.5 to 5 points more likely to register Republican and 3.5 to 6 points more likely to donate to GOP candidates. The professor who led it said, 'This is a really important group in the economy that no one is looking at.'

Small businesses employ nearly half the workforce and drove two-thirds of job growth over 25 years. Hispanics start one in four new businesses. Republicans can build on Hispanic gains by reaching owners.

GOP steps before November include an information campaign on Trump tax benefits and Democratic threats in the Congress starting January 2027. The party should affirm support for small business traditions and startup culture across demographics.