Welcome to the Small Business Run Down. Each day, we bring you stories that impact small business owners and their workforce.
Hurray! We made it through another week. Before you head out the door for the weekend, check out these stories on the way that small businesses are the brunt of increased tariffs, the benefits of home-based businesses, and the toll that impeachment might take on the small biz community.
Big retailers pass the cost of tariffs on to small biz suppliers
As the trade war with China continues, small businesses continue to struggle under the weight of tariffs — and big retailers aren’t helping matters. Companies like Bed, Bath and Beyond, Target and TJX Brands have reportedly told their suppliers to eat the cost of the tariffs or to sell their goods to different buyers. While business is good, the loss in profit is impeding many companies from investing in technology or marketing.
The Number: 25%. Some small businesses have seen the price of their goods jump by as much as 25%.
The Quote: “We’re just holding on until we can figure this out.”
The many benefits of home-based businesses
For entrepreneurs who are just starting out, sometimes the choice comes down to either paying rent for the business or paying rent for a place to live. One solution? A home-based business. When Dr. Antonio Boncordo graduated from dental school, the nearly $150,000 in debt he carried forced him to live with his parents while he got his practice up and running. Working out of a home office has many benefits, however. More small business owners are choosing to forego a separate location in favor of the convenience and cost-effectiveness of working out of their private home.
The Number: 50%. Roughly half of all small businesses are operated out of private homes.
The Quote: “With the loans coming out and whatnot, we’ve got to look at this point at how to make water from a rock.”
Former head of SBA discusses toll of impeachment on U.S. small biz community
According to the former administrator of the U.S. Small Business Administration, politicians should stop and consider the toll that a prolonged impeachment battle will take on the small business community. In particular, Congress has delayed ratifying the U.S.-Mexico-Canada Agreement, a replacement for NAFTA that would increase investment opportunities for US small businesses.
The Number: 98%. Small businesses are responsible for nearly 98% of exports.
The Quote: “Small business owners aren’t the loudest voices on social media. But they are the engine of our economy, and they expect more from their elected officials than endless political fights.”