Is Now a Good Time for Prospective Entrepreneurs in the United States?
Ever since the election of Donald Trump as president of the United States, the economy has entered unknown territory, with many seeing him as a volatile wildcard who could cause an upheaval of the political and economic status quo. If you’re an entrepreneur or the owner of a small business, you may be wondering what all of this means for you and your future.We explore some of the ramifications here.
The Dollar
Those trading in dollars on the forex marketmayhave noticed the fairly bumpy ride which the dollar has had since the US elections in November. Once the results were in, the dollar shot up in value, perhaps as a result of Trump’s promises to invest in the economy.
By January, however, the dollar looked set to be on the back foot asuncertainty crept into the markets. These unpredictable fluctuations in the dollar’s value may not bode well for entrepreneurs, who could be at a disadvantage because of not knowing the value of the dollar.
New Business Tax Rate
The Trump Administration has also just proposed a cut of the business tax rate from 35% to 15%, which would be unprecedented and undoubtedly cause massive changes to the economic structure in the United States. It remains to be seen whether something of this proportion will pass through Congress unchanged.
Moreover, the proposed tax reform would apply only to C corporations, meaning that smaller businesses, who conduct most of their activity as pass-through entities, may not benefit directly. The cut could, however, encourage growth and allow for greater savings in the long run.
Starting a New Business
Starting a new business is a challenge in itself, and with Trump’s proposed tax reforms, entrepreneurs would be forgiven for being a little nervous about the future. If the current administration is willing to propose such radical and unprecedented economic changes, it is hard to see what is around the corner for those wanting to run a small business.
This may lead entrepreneurs to be more cautious with their investments. Some will decide to wait until the economic waters have settled before planning new ventures.
It is certainly a challenging time for entrepreneurs in America. With the uncertainty that Trump has brought to both politics and economic affairs, many may want to wait until Trump’s direction becomes clearer before throwing their money into something as inherently risky as a small business.
Dream Big and Beat the Odds
That being said, many entrepreneurs thrive on a certain level of risk, so the fluctuating economy may draw in those who are willing to take a bigger chance with new business ventures. Besides, there are always those who, because of their spirit and their drive, will thrive regardless of the conditions in which they find themselves.
As business leader and management expert Peter Drucker once said, “The best way to predict the future is to create it.”
