Wisconsin’s Small Business Leaders Warn of a Holiday Crisis

The holiday season is about to kick into high gear, and Wisconsin’s small business leaders are hoping shoppers remember the power of keeping their dollars local. Owners, ranging from family-owned storefronts on Main Street to neighborhood makers and independent restaurants, say support isn’t just appreciated. It’s essential. Shawn Phetteplace, campaign director for Main Street Alliance, joins Earl Ingram, host of What’s Going on with Earl Ingram, to talk about the crisis facing small businesses right now. Main Street Alliance represents more than 30,000 small business owners across the country, and Phetteplace calls their message consistent but urgent. The current policy landscape is creating the most hostile environment for small businesses in modern U.S. history.

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Listen to the entire discussion here:

[podcast src="https://civicmedia.us/shows/whats-going-on/2025/11/20/small-business-101"]

Phetteplace points to rapid action taken by the Trump administration, including a federal funding freeze, widespread government layoffs, and the hollowing out of the Small Business Administration. He also says cuts to health care coverage, rising insurance premiums, and continuing tariffs are squeezing many entrepreneurs who have already been operating on very thin margins.

“We have members who’ve already gone out of business because of the tariffs,” Phetteplace explains. “Others may shut down if these health-care cuts aren’t rolled back.” 

He highlights one recent example from Eau Claire. A married couple earning $80,000 a year faces a $32,000 increase in health-care premiums due to the recent policy changes.

Small businesses, though long considered the backbone of communities, are feeling the strain. 99% of all businesses are considered small businesses in Wisconsin. Nationally, 88,000 small-business jobs have been lost in just the past three months. And the surge in new business formations since 2020 means millions of those new entrepreneurs — 289 in 2024 — may now be at risk as a downturn looms. The collapse of even a handful of small businesses can reshape an entire community, especially in rural areas. 

“It’s like a tsunami we can see coming,” Ingram adds. “When Main Street suffers, the whole community suffers.”

Phetteplace agrees. He emphasizes the urgent need for people to support their neighborhood shops – especially right now. Small Business Saturday is this weekend. The national day is dedicated to supporting local entrepreneurs during the holiday season. And with many business owners absorbing tariff costs, fighting rising inflation, and navigating sharp increases in health-care premiums, this year’s Small Business Saturday could be an important lifeline.

“Buy gift cards. Visit local restaurants. Shop at the stores that invest in your community,” Phetteplace says. “When you spend money at a small business, you’re keeping your dollars local. You are not sending them to corporate shareholders across the country.”

He adds as SNAP reductions and health-care cuts ripple through communities, supporting food pantries and mutual-aid efforts is equally important.

Phetteplace remains firm that despite the challenges the public still has power. 

“The people hold the cards,” he says. “If we come together and demand better policy, we can protect our small businesses and the communities they anchor.”

RESOURCES:

Find information for the Small Business Development Center in Wisconsin here.

Learn more about Small Business Saturday here.