What to Expect: Small Business Under The New Adminstration
With the new administration taking control, many small businesses are patiently waiting and hoping for positive actions to be taken, supporting small business. Under the previous administration, the White House boasted many accomplishments for small business including stating, "15 million private-sector jobs created since early 2010 and access to more government contracts for women and minority business owners.
Despite whatever progress the former administration stated, there were some critics that had different views. Issues that were mentioned and that are a continued concern for small businesses are listing below. Much of these issues were ones Trump campaigned about with a promise to improve these for small business.
Regulations & Taxes:
Trump made many promises to big and small businesses that suffer from steep regulations. One of his main message for businesses was a proposed a "moratorium on all new regulations." This would please small businesses owners immensely as many feel regulations are real concern. During his campaign, he said he'd not propose any new financial regulations until the economy shows “significant growth." He also has plans to repeal the 2010 Dodd-Frank Act as well as the Estate Tax.. A recent poll from Manta, surveyed small businesses finding that many believe “Trump Administration Will Have Positive Impact on Business.” According to the survey, over 69% of small business surveyed believed “Trump will follow through on his promises of deregulation and corporate tax reform.” In a recent CNBC article, Todd McCracken, president and CEO of the National Small Business Association, said "Eighty-three percent of small-business owners are incorporated such that they pay business taxes on their individual tax returns, so to ensure that all entrepreneurs see a reduction in taxes, Trump needs to lower individual income taxes, too."
Small Business have had a difficult time offering employers health insurance. Since insurance premiums are so high, many small businesses can barely afford their own coverage let alone any employees they hire. Many, in fact, prefer to higher contract employers so they can opt-out of providing the various kinds of benefits that employees expect. With Trump's commitment to change elements of Obamacare, some businesses have an optimistic outlook on Trump's plans to improve healthcare. Whether or not those changes can make an impact for small businesses is still questionable.
Another recent article talked about the economic upturn that small businesses felt in November and December of 2016 and how many small businesses feel optimistic after the election and for the upcoming years. “The National Federation of Independent Business Index of Small Business Optimism jumped by 7.4 points to 105.8, its highest level since 2004.”
With all the divided opinions and expectations of the new administration, it’s difficult to predict what types of progress they will have and if it will positively impact small business. Since Trump comes from a business background many small businesses are hoping that his time in DC will be a productive one. The best advice that many experts have to weather any type of storm is to make sure your business is prepared for any changes within the hot trending topics.