The 45th American President

With November 8th drawing closer and closer, Americans will soon find out who will be the next president of the United States. In a race where few people can agree on anything, many will agree that these last few months have been more memorable than any race we’ve seen before.

The candidates themselves have managed to polarize a nation, with a large group saying they feel they don’t have a candidate worthy of their vote. It seems that the elections have become all about the candidates which goes against the principles of democracy. The elections are meant to be about the voter and their right to choose who is allowed to represent their collective voice. Especially as small business owners do more for the US economy than the campaigns Mrs. Clinton and Mr. Trump have been running to promote their agenda.

An article by Fast Company discussed the fact that most small business owners do not currently feel that either candidate has a proper understanding of how government policy impacts small business. In the article it goes on to say that 78% of small business owners would vote for the candidate who would most benefit small businesses. For that purpose we would like to take a look at the policies which directly affect small businesses, so you can have an easier time making your president work for you.

Note: In an effort to remove political bias, this article was written by a Canadian.

Mrs. Clinton

Hillary has been making a point of mentioning small businesses as a part of her platform. She lists it on her website as one of many issues she intends to tackle. Her main points regarding small businesses are as follows:

Funding Boosts: Hillary states that she would look to ease access to financing by trying to take regulation burdens off community banks, as well as boosting funding via programs where there is a shortage of small businesses.

Cutting Bureaucracy: Again, Hillary says she would look to reduce the amount of governmental runaround required for starting and maintain a new business.

Tax Relief: Tax reworks have been in every discussion of every politician looking for a ticket to the oval office for as long as I can remember. Hillary says she would simplify the tax process to save small businesses money and time spent on complying with government regulations.

New Markets: This one is an interesting one, because both candidates are actually not nearly as neo-liberal as Obama is. This is made evident with the TPP plan Obama came up with, which both candidates opposed (despite Donald saying Hillary is for it). On the one hand the TPP threatens some domestic industries, but on the larger scale it is in fact the most progressive plan in recent history that could possibly further the average Americans reach to new markets. On the website Hillary lists her plan for new markets as building new ports, airports, bridges etc. as a way to increase reach. (Favorable trade tariffs would likely be a more sure solution to expanding into new markets)

Making Sure Small Businesses Get Paid: Hillary gets into a more political stance with this one, saying big enterprises, like those of Donald Trump, should be held to task when they don’t pay small businesses. She intends to make a plan for cracking down on big businesses who withhold payments from small businesses. This one seems a bit political because there are already rules in place to protect any businesses from having due payment withheld from them. (The more sustainable solution would be to provide quality legal assistance to small businesses who take big corporations to task, as they are usually buried under legal fees)

Small Business Owner Support: Here Hillary says she will work to provide incubators, mentoring and training for 50,000 entrepreneurs and small business owners across the country. I think 50,000 is a small number since there are closer to 30 million small businesses in the United States alone, but this seems to be a real commitment. This solution of hers really would be a great way to help small businesses in America.

Mr. Trump

Donald is seen by many as a real-estate tycoon and very much involved in his own big business activities. As such, many of his points have a subtext of promoting better conditions for small business. Certainly as a whole his policies (which seem a bit protectionist) would increase local jobs, but would Americans still be competitive when it comes to exporting globally? Unlikely. With the exception of Canada, most of the richer countries who might be able to afford American products (factor in the strong American currency and relatively high minimum wage) are closer to Eastern European and Asian countries. That means not only are the alternatives to American products cheaper, but shipping costs would likely be more favorable as well.

Tax Reform: Donald writes on his website that he is looking to make an overall tax reduction that would benefit both small businesses and big businesses alike. He would like to see no more that 15% paid in income tax. Again, I can’t remember a presidential candidate who did not make some kind of tax promise.

Eliminating Carried Interest Deduction: This is an interesting point regarding small business as Donald is taking away a loophole system that benefits himself and other big business enterprises. This is a good show of commitment to smaller businesses who typically do not get to benefit from these systems.

Regulation Reform: Donald presents a blanket statement here, similar to Hillary, essentially promising to cut down the bureaucratic process as a whole. Again, these promises don’t really dive into depth but as a whole would benefit small business. (It would be nice for either candidate to talk about the specific bureaucratic obstacles small businesses face that they would like to eliminate)

Trade Reform: Donald has written up a 7 point plan which is very much a rant against China. To start, he’s not entirely wrong. China has been known to devalue its own currency and employs very aggressive economic tactics. The only issue is this, what about the small business who thrives on selling branded memorabilia on their ecommerce store? If you are selling cups with your logo on it and you have high margins, chances are you are getting your cups from China. So who does it really help to alienate China as a trade partner? To be honest, I’m not sure.

These are the main points from either candidate that have an impact on the small business owner. So what are our takeaways?

Mrs. Clinton:

Let’s start with what I do like, and that is her plan for supporting small business owners. I don’t like that it is only a program for 50,000 small businesses and entrepreneurs. It includes entrepreneurs (leaving her wiggle room to support larger enterprise entrepreneurs), but the fact that she actually put some facts and numbers on paper is a good start.

What I don’t like is her plan to make sure small businesses don’t get stiffed by bigger businesses. It seems like a political deflection to hurt support for Trump rather than an actual plan to uphold the law. People are meant to get paid for work done as per their agreements. The laws already exist, it’s an issue more with the legal system and burial by legal fees than anything else. If she would have advocated a program that supplies proper support to small enterprises that need it, this point would be a win. However, it’s not actually about small business, it’s about undermining her opponent so it’s a point I really don’t like.

Mr. Trump:

Starting with the positive, the plan to eliminate Carried Interest Deduction. I like that Donald has highlighted a part of the economic system in America where big business gets an advantage over small business, and he plans to destroy it. Will it level the playing field completely? No, but it is a good start and shows real commitment. If you want to really level the playing field for small businesses, try affordable and easy to use marketing tools for digital marketing.

What scares me and should also definitely scare you is Donald’s stance on China. It seems like no matter what happens, he is hell bent on ostracising the Chinese completely from current trade relations. The reason it is scary for small business is simple. Even though it will create more jobs, it will also rid American entrepreneurs of suppliers that help drive their businesses.

In conclusion, neither candidate really stands out as the champion of small business owners. That being said, the main policy to avoid for small business growth is protectionism. Before you start to think that closing your gates to create new jobs is the way to go read this article about protectionism.

For the above reasons, it can be beneficial to be as independent and self-sufficient as possible within the chosen industry of your small business. Whether cutting down on marketing expenses and doing it yourself, or networking to get good deals with local suppliers, being self-sufficient certainly protects you from whatever laws and measures are put in place that may have an impact on your finances and the success of your small business.

Good luck voting and don’t vote for the candidate, vote for yourself. You are what makes America great, not one politician or another.