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Current Political Chaos Crushes Small Businesses

Two facts are indisputable: first - that small businesses by their nature are considered extremely risky as to their chance for success, and second – the current US political climate is chaotic at best, although stagnant and toxic may be a more accurate description. There is such a lack of effective leadership representing the American people in total currently vs. a fractured approach tied to political affiliation and totally beholden to corporate / cause money such as the drug industry and the NRA. Our politics has even become racist leadership that is frightening.

What is most troubling to CI Works is the impact of this uncertainty is having on small businesses and effectively exaggerating their risk profiles. This is not a formula for success. Uncertainty inhibits both investors’ and consumers’ willingness to make decisions and commit large sums of money. Large companies face the roller coaster of the stock market where valuations suffer, but consumers continue to need to eat and buy the products they use creating demand for the standbys. The impacts of tariffs being passed through to consumers in price inflation is furthering the uncertainty. ‘Trump’ branded products could show some leadership and eat the added costs from tariffs from their profits and set an example for other companies. That aside, roller coasters eventually just level out. The time

frame for leveling is often unknown except that it will eventually happen.

Small businesses however are operating in very short and time critical windows of existence where a roller coaster can’t be waited out – they will be dead. The political uncertainty is causing pause amongst their investors – that could be funding their existence and growth potential, extending the purchasing cycle time to close due to caution regarding injecting any type of additional nuance in their supply chain on top of the chaos, and we all know that banks won’t lend to this segment due to a very protective regulatory environment that does not protect consumers – it protects banks.

What is needed is for the current chaos to end, lack of decision making and lack of leadership due to political fractures must be eliminated, and the return to the normal levels of risk related to the existence of small businesses in order for them to have a chance to survive.


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