Governor JB Pritzker has been touring the nation, positioning himself as a champion for small businesses. His recent speeches highlight economic growth in Illinois and paint a picture of prosperity under his leadership. But a closer look at his actual policy record tells a different story – one that many small business owners in Illinois know all too well.
I’ve spent the last decade covering state-level economic policies, and the disconnect between Pritzker’s rhetoric and reality stands out as particularly striking. Last week, I spoke with Maria Castellanos, who runs a family restaurant in Chicago’s west side. “The governor talks about helping businesses like mine, but our taxes and compliance costs keep going up,” she told me. Her sentiment echoes across the state.
Since taking office, Pritzker has signed legislation increasing the minimum wage to $15 per hour. While this benefits workers, many small businesses have struggled to absorb these costs. According to data from the Illinois Policy Institute, approximately 21,900 small businesses closed in Illinois during Pritzker’s first term, a number that exceeds neighboring states by significant margins.
The tax burden on Illinois businesses ranks among the highest in the Midwest. Pritzker campaigned on and continues to advocate for a progressive tax system, which many business owners fear would eventually increase their tax obligations. The Illinois Chamber of Commerce has repeatedly expressed concerns that such policies create uncertainty in the business environment.
“When businesses don’t know what tax rates they’ll face in the coming years, they hold back on investments and hiring,” explained James Thompson, an economics professor at Northwestern University. “This uncertainty affects small businesses disproportionately since they have fewer resources to adapt.”
The regulatory landscape in Illinois has grown more complex under Pritzker’s administration. New reporting requirements and compliance regulations create additional burdens for small operations without dedicated legal and HR departments. A survey by the National Federation of Independent Business found that 67% of Illinois small business owners reported spending more time on government paperwork than three years ago.
I witnessed this firsthand while interviewing Tom Ramirez, a hardware store owner in Peoria. During our conversation, he had to excuse himself twice to take calls from his accountant about new reporting requirements. “I’d rather be serving customers or training employees, but instead I’m drowning in paperwork,” he sighed.
The pandemic response in Illinois presented both challenges and opportunities for Pritzker’s administration. While the governor did allocate significant relief funds to small businesses, the distribution was often criticized as slow and inequitable. Data from the Illinois Department of Commerce shows that only 40% of eligible small businesses received state assistance during the height of the pandemic.
Pritzker’s energy policies have also raised concerns among small business advocates. His push for aggressive climate goals, while important for environmental reasons, has contributed to higher energy costs in the state. According to the U.S. Energy Information Administration, Illinois businesses pay electricity rates approximately 12% higher than the national average, affecting everything from manufacturing to retail.
When I raised these concerns at a recent press conference, Pritzker pointed to the state’s $500 million Back to Business grant program as evidence of his commitment to small businesses. However, analysis by the Better Government Association found that the program’s benefits were concentrated among larger businesses with better access to application assistance.
The governor’s supporters highlight positive aspects of his economic record. Illinois has seen job growth in certain sectors, particularly technology and logistics. The state’s unemployment rate has declined during his tenure, though it remains higher than most neighboring states. And Illinois did attract several high-profile business relocations, including expansions by companies like Google and Kimberly-Clark.
Todd Maisch, president of the Illinois Chamber of Commerce, offers a nuanced perspective: “There have been targeted investments in business development that show promise, but these are often overshadowed by broader policies that increase the cost
