Former President Donald Trump and Vice President Kamala Harris recently engaged in a debate that was heavy on personal attacks and light on substantial discussion of the issues that are most important to American voters. Despite polling indicating that the economy is a top concern for voters, small businesses, which employ nearly half of the American workforce and contribute significantly to the nation’s GDP, were overlooked during the debate. Inflation, which has become a persistent issue with rising costs affecting the profitability and long-term viability of small businesses, was also not adequately addressed.
Both Trump and Harris lacked specific plans for addressing economic challenges such as inflation and the negative impact it has had on small businesses since the start of the pandemic. Small business owners have faced shortages, rising fuel costs, and increasing minimum wages, all of which have taken a toll on their earnings. There was also no mention of expanding access to capital for women-owned and minority-owned businesses, which are critical for driving economic growth and stability.
Harris proposed a $50,000 tax deduction to incentivize startup activity, but many small business owners are struggling to turn a profit due to higher costs and may not benefit from such a deduction. What small businesses need most is resilience and longevity, which can be fostered through government policies that lower taxes and reduce regulations. The lack of specifics on how the tax incentive program would work and the implementation timeline were also concerning for business owners.
Government must work more efficiently for small businesses, as evidenced by delays in processing Employee Retention Tax Credits (ERTC) that have left many business owners waiting for over a year to receive their claims. This bureaucratic failure must be addressed by the next administration, regardless of the election outcome. Technology-led public-private partnerships that streamline processes and improve access to funding for small businesses should be a focus for future government initiatives.
Under the Trump administration, small businesses benefited from reduced regulations and a strong economy with low inflation. It is likely that Trump would reinstate policies that supported small business growth, such as tax cuts and fewer regulations. Harris, on the other hand, should have highlighted the record of small business creation and expansion of lending programs during the current Biden-Harris administration. Both candidates share a desire to help small businesses, with Trump’s business background and Harris’s advocacy for women and minority entrepreneurs.
The next U.S. president must prioritize spurring small business growth while addressing inflation to ensure the success and longevity of small businesses. A combination of monetary policy and reduced government spending will be key in bringing down inflation and supporting small business growth. The government must focus on modernizing processes, improving access to capital, and reducing bureaucratic delays to create a more supportive environment for small businesses in the future.
