How Small Businesses Respond to Uncertainties

small business uncertainty

 

 

 

The companies within industries that are most impacted are:

1.   Companies that rely on imported goods from specific countries will be directly impacted. 

These include many retailers, the fashion industry and manufacturers which are dependent on parts or components of the products they produce.

2.   Companies that do not import but rely on highly trained technicians will be impacted with increased labor costs if immigration policies are more restrictive.

This would include companies in Silicone Valley who compete for those skilled IT and engineering.

3.   Companies may benefit from tax reforms. If the corporate tax rate is restructured and/or money parked offshore can be repatriated.

It has reported that the top five US tech have $2.1 trillion dollars in profits parked overseas this represents just over one-fifth of all dollars overseas. 

4.  Companies may benefit from reduced regulations.

Many regulations are necessary and most are costly. Included in this group are manufacturers.  

Will the changes affect the currency markets and how will that relate to their sales?

These are unknowns that the most respected economists write about without any certainty.

Uncertainties result in restraint. I anticipate that money will be chasing deals: a reversal from the norm. But the risk factors for both the borrower and the lender will be increased because nothing can be predicted with certainty.

Related articles:

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Seven Business Challenges In A Divided America

Healthcare Challenges and Remedies for Small Business Owners

6 Keys to Managing Data in a Global World

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About the author

Marjorie Weber

Marjorie Weber has been educating entrepreneurs and guiding them in their search for capital for the past 16 years: combining business training programs with one-on-one mentoring. She was Chair of SCORE Miami Dade from 2010 to 2014 and is currently a financial advisor for SBDC/FIU. She also serves as an advisor to the Goldman Sachs 10,000 Small Business Program and the SBA Emerging Leaders Program and provides training for Veterans seeking an entrepreneurial path upon retirement from the service. She has been facilitating workshops under the auspices of Miami Bayside Foundation for the past 3 years. She commenced her career as a real estate investment banker in New York and Miami.She uses these long term relationships to assist her clients in accessing capital. She knows both the process and the people and has assisted in providing financing for hundreds of businesses in Miami Dade.