SBOs are under the gun over China mandate, plus NC small business health act becomes law and women are changing American business
Welcome to the Small Business Run Down. Each day, we bring you stories and trends that impact small business owners and their workforce.
It’s the beginning of a new week, and many small businesses are still considering the ramifications pulling out of China. Plus, a new piece of small business legislation went into effect in NC over the weekend and the rise of the “Sheconomy.”
President’s order to exit China not feasible for many SBOs
The prospect of moving business out of China has many US small business owners concerned about their future. For companies that lack the resources to easily identify new suppliers and manufacturers in other countries, pulling up stakes and leaving China could be devastating for business. Many of these companies already report shrinking profit margins as they absorb the cost of increased tariffs on Chinese-made goods.
The Number: $75 billion. In response to President Trump’s tariffs, the Chinese government announced tariffs of their own on $75 billion worth of American imports.
The Quote: “It’s not as easy as a tweet to find alternatives. And time spent finding alternatives is time spent not growing the business.”
NC small biz healthcare bill becomes law without governor’s signature
In an unusual political move, the governor of North Carolina allowed the Small Business Health Care Act became law on Sunday night without vetoing it — or signing it. While the bill had bipartisan support in the North Carolina legislature, Gov. Cooper was concerned that the legislation would leave some people with more expensive policies that provide less actual coverage. He also believes that the bill is illegal and will ultimately be challenged in court.
The Number: 32. Though sponsored by a Republican, the bill passed the bill passed the NC Senate by a vote of 32 to 9.
The Quote: “People have a right to be frustrated with the cost of private health insurance plans, but even though there is significant bipartisan support for this legislation, my concerns about the legality of these cheaper plans and their potential negative effects on health care prevent me from signing the bill.”
Changes in US demographics give rise to “Sheconomy”
Savvy SBOs take note: single working women are poised to create a “Sheconomy.” As women wait longer to get married and have children — or choose to do neither — they are changing spending patterns across the country. Single working women outspend the average household and tend to focus their purchasing power on footwear and apparel. They also spend significantly more time exercising than their married counterparts.
The Number: 77.5 million. Recent census data indicates that the number of single women in the US will rise from 67 to 77.5 million.
The Quote: Based solely on our estimate that growth in the singles population will outpace the population as a whole, annual expenditures driven by women should grow disproportionately to other spending cohorts