The year 2016 is drawing to a close and there were quite a few issues which directly or indirectly affected small businesses. Fresh graduates looking to start their own business think of a small business as the ideal platform to become a successful entrepreneur. The business scene is influenced largely by the political developments in any country and thus the president-elect Mr. Donald Trump will be responsible for key developments and defining how small businesses will flourish in the year 2017.
The optimistic mood among many investors and businesses following the elections is a surprise for many as markets took a plunge when Donald trump ratings went ahead of Hillary Clinton for the first time in late October. Although many people thought of Trump as a non-serious candidate, his business knowledge and experience cannot be challenged and there is a lot we can learn from Donald Trump. The person is a seasoned business tycoon with ventures not just in USA but around the world. So what’s in-store for small businesses as Trump as a president for the next 4 years. Let’s analyze in detail.
The Current Scenario to Start a Small Business is Ripe
The reason that many fresh graduates or young people with bright ideas go for small business as their first venture is simple; the risks are minimum and in addition you can apply for the government support or even qualify for preferential tax policy according to the concerned state law. The benefit of having a president who knows the nitty-gritty of conducting business in fierce market conditions is a big boost to current and prospective businessmen alike. Let me define you the top 3 reasons why small business owners are looking to take the advantage in the year 2017 and beyond.
- The Pledge from SoftBank of Japan to Invest $50 Billion in the USA
Masayoshi Son, the CEO of the Japanese telecom SoftBank, announced earlier this month that his company will invest $50 billion and as a result around 50,000 jobs will be created. He said that after meeting with the president-elect Mr. Donald trump. While basically this news is for the telecom sector and tech firms, but the people of USA as a whole will also benefit from it, not to mention the small businesses. Puzzled how this will happen? Read on…
The influx of 50 billion dollars will be a huge boost to the US economy with the world shying away from investing in the USA on such a large scale in the recent past. The BRICS, Far East and some emerging African nations like Nigeria are on the list of hot-shot investors and big funds. The creation of around 50,000 new jobs will be a huge opportunity for every business to cash-in. Let me give you some examples so that you can understand easily.
If a new factory is opened in any locality, there will be an immediate need for food stalls, restaurants, grocery stores, convenience stores, etc. The list is endless. So you can see how small businesses will boost in a particular community. Just imagine how they will bolster on a nationwide basis. So it’s the first positive sign that I wanted to share with you.
- The Momentum is with the Small Businesses for Some Time Now
The market crash of the 2007-8 was a major drawback for the overall business environment to flourish. Many giants like Lehman Brothers crashed and small businesses also took a hit likewise. When the economic outlook started to look better, the opportunities for small businesses also started to change and for the last 2 years straight, annual start-up activity has increased. That’s a very positive sign and looks to continue as a veteran in the business field will now be president.
Many new small businesses have opened with the women only setups and minorities also having a positive change. The promises by Mr. Trump deregulation and Tax reform has long been discussed and will certainly be in favor improving the business environment. The labor regulations will not impact small businesses like huge conglomerates and multinational firms, but will be a positive factor nonetheless.
Another tax proposal of Donald Trump of aiming to lower corporate taxes to 15% among other reforms will be crucial too. According to Jeff Winkler, founder of Origin Code Academy in San Diego, CA thinks that both the ideas of lowering taxes and less regulation are fine. As a businessman, he wants a tax regime which works in his favor and have a positive impact on the businesses as a whole. So for the time being, it’s a rosy picture ahead for most small businesses.
- Small Businesses which are Heavily Regulated
Apart from grocery stores, small convenience stores, etc. there are businesses mostly on the same scale but starkly different in nature. These include day care / child care, retirement homes / old homes and restaurants serving liquor. There are tough regulations to operate these stores and even a minor mistake from the owner or any employee can result in severe penalties or in the cancellation of the license in extreme cases.
While there are same issues concerning the above mentioned businesses like any other small-time ventures, the tough regulations mean they have to spend a lot in order to comply with laws and make sure the owners keep an eye on the day to day operations. The minimum wage issue which the Obama administration tried so hard to solve is still a mystery. And day care and old homes are following the proceedings closely.
The Obamacare is another point on which many people think that will become better in Trump’s era. But things are not clear as I write these lines and according to National Small Business Association 42 % of the small business owners are in contact with lawmakers over health-care costs.
Conclusion
The overall mood is quite upbeat from November the 8th, 2016 when the majority of the people living on this planet were in a shock. Now things have settled down and people of the USA especially business owners have realized that they must find a way to conduct business with Mr. Donald Trump at the helm of the affairs. Small businesses need some space in order to survive and hence are optimistic that they will fare better in the time to come.
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