When U.S. President Donald Trump was elected in 2016, small business optimism reached record highs. Small entrepreneurs are confident that Trump’s policy agenda can provide them with more opportunities and help them improve their profitability.
Trump has several programs and initiatives that will benefit small businesses. But their completion is no longer certain now that the impeachment inquiry has started.
An example is the United States-Mexico-Canada Agreement (USMCA) which could improve the exporting opportunities for small and medium enterprises (SMEs). It is the first U.S. trade agreement with a focus on SMEs. USMCA would remove potential barriers that discourage SMEs from engaging in international trade such as the requirement to open an office in the target export country. It also has a provision for improving investment opportunities for SMEs. With the ongoing impeachment, its ratification cannot be expected anytime soon.
Another example is Trump’s infrastructure reform. The U.S. has recently been given a D+ grade by the American Society of Civil Engineers in its recent infrastructure report card. The poor condition of roads and bridges are affecting America’s economic growth. SMEs will benefit from this reform in two ways. One is through federal contracting and subcontracting for infrastructure-related work. Another benefit comes from safer and highly functioning roads, bridges, ports, railways and airways.
Small businesses, unlike larger companies, do not have the resources to weather the effects of the impeachment and a polarized government. Congress should consider the negative effects of their political fights on small businesses that serve as the engine of the U.S. economy.