The 2025 Revival of Small Business
Travel agencies, retail shops, SaaS software startups, and real estate brokers are small businesses and they haven’t been represented well in the last 4 years.
And small business provides most of GDP and income/jobs for most Americans. They employ 61 million people or 45.9% of the entire U.S. workforce [1].
When SMBs are crushed, the country suffers. This last 4 years has been torture for you and others, and President Trump’s win today is a win for Americans, and for the US best, loyal trading partners. It’s not good for China, but China had its inflated run bolstered by US hedge funds and multinational corporations. That time has passed, and it’s the US’s turn in rebuilding itself into the amazing country it once was.
The previous two recessions generated painful times for everyone, but mostly for small businesses. It’s important to understand how high rates, high taxes, and unfair regulations have hurt your business — which is everything to you, what you have fully invested in. It’s not a tax write-off, but is everything you have to support your family.
Center Square’s survey revealed the real concerns. It queried 80,000 small business owners with fewer than 500 employees nationwide, including those in the retail, hospitality, service and restaurant industries. Nearly half of businesses surveyed said they “definitely” (22.4%) or “probably” (26.2%) won’t survive another 4-year term of a [Democrat] presidency.”
When asked, “What (if any) changes would you consider making to your business plans in preparation for a second Biden term?,” small business owners said they couldn’t make it. One said, “Actively look at selling out to a larger competitor.” Another said, “Close my businesses.” Still another, “Cross my fingers? I don’t even want to consider that.”
Lower interest rates could help the new Trump administration, but there are no financial experts who believe interest rates are about to fall a lot. Definitely, a change in government is needed to stop the sources of inflation and enable US small business investors to resume investing in American businesses.
When Will the Pain Stop — When you Make it Stop
From travel agencies to Realtors to digital marketing providers, the high interest rate, high inflation, and high tax economies have brought a lot of pain. Opportunity has dried up and ROI is low. However, we could be on the precipice of something great beginning in 2025. This is beyond the stock market. It’s about people and businesses right across the US who are the essence of the United States of America. Without them and you, the US continues as a satellite office for foreign operators.
And the suffering of small business means most of the spirit, passion and work ethic of small business owners and their employees and contractors is lost. You’ve lost more than you realize. There’s never been so many people spinning their wheels for nothing. I’m in that category for too long too. It took great perseverance and optimism to wait for the defeat of the Woke Democrats. Canadians want the US we used to know and admire.
Small biz just can’t get traction no matter what we do. AI isn’t going to change the outcome but a new President would bring everything back to health.
A New President, A New Outcome for SMB’s
With the re-election of President Trump however, we’ll see much lower interest rates, pro business focus, and lower energy costs. And the lower taxes projected would give small business people more funds to grow their business and market themselves.
Here’s the full list of real benefits the President Trump trade would generate:
- lower income and related taxes such as real estate taxes
- reduced regulations on US companies
- lower energy costs (gasoline, diesel, fuel, cost of plastics and manufacturing and ingredients for fertilizers to grow food)
- greater energy exports (growing GDP)
- saves money which is freed up for investing in new business projects (with less risk)
- lower interest rates lower costs for home buyers, small business owners, and improve access to needed credit, and ultimately renters through increased building and lower rents — lower-income people spend money locally
- lower inflation (high inflation comes from excessive Gov sending, high FED rates plus restricted material supply)
- pro-US business focus supporting American companies
- manufacturing repatriation to support American manufacturing success
- eliminating taxes on tips, overtime and social security benefits
- import tariffs on countries that don’t reciprocate fairly in trade
- lower regulations free up construction and reduce development time/costs
It’s easy to see that when costs fall, consumers and businesses have more money to spend. High interest rates trying to counter excessive government spending, pushes money out of the private sector and then into the bond market — all bad things for small business.
A rising discretionary income always points to an expanding economy. That’s very positive for small business and it bolsters a strong stock market forecast too.
Lower costs and rising consumer spending should make the next 4 years much better, but as you read in the above list, the President and government dictate whether it will happen.
Forget that the stock market wants a Trump win. Small business will thrive again with his Presidency. Then we can start spinning our wheels and find real customers in the next 5 years.
Find more insights on the stock market, travel market, software market and real estate market — exciting sectors to be involved in the next 5 years.
Let’s start doing business again!
