For America’s 35M small businesses, tariff uncertainty hits especially hard
Peter Boumgarden, Washington University in St. Louis and Dilawar Syed, The University of Texas at Austin Imagine it’s April 2025 and you’re the owner of a small but fast-growing e-commerce business. Historically, you’ve sourced products from China, but the president just announced tariffs of 145% on these goods. Do you set up operations in Thailand – requiring new investment and a lot of work – or wait until there’s more clarity on trade? What if waiting too long means you miss your chance to pull it off? This isn’t a hypothetical – it’s a real dilemma faced by a real business owner who spoke with one of us over coffee this past spring. And she’s not alone. As of 2023, of those U.S. companies that import goods, more than 97% of them were small businesses. For these companies, tariff uncertainty isn’t just frustrating – it’s paralyzing. As a family business researcher and former deputy administrator of the U.S. Small Business Administration and entrepreneur, we hear from a lot of small-business owners grappling with these challenges. And what they tell us is that tariff uncertainty is stressing their time, resources and attention. The data backs up our anecdotal experience: More than 70% of small-business owners say constant shifts in trade policy create a “whiplash effect” that makes it difficult to plan, a recent national survey showed. Unlike larger organizations with teams of analysts to inform their decision-making, small-business owners are often on their own. In an all-hands-on-deck operation, every hour spent focusing on trade policy news or filling out additional paperwork means precious time away from day-to-day, core operations. That means rapid trade policy shifts leave small businesses especially at a disadvantage.
Planning for stability in an uncertain landscape
Critics and supporters alike can agree: The Trump administration has taken an unpredictable approach to trade policy, promising and delaying new tariffs again and again. Consider its so-called “reciprocal” tariffs. Back in April, Trump pledged a baseline 10% tariff on imports from nearly everywhere, with extra hikes on many countries. Not long afterward, it hit pause on its plans for 90 days. That period just ended, and the administration followed up with a new executive order on July 31 naming different tariff rates for about 70 countries. The one constant has been change.Bloomberg TV covers the administration’s “surprise announcements” on trade the day before a key self-imposed deadline. This approach has upended long-standing trade relationships in a matter of days or weeks. And regardless of the outcomes, the uncertainty itself is especially disruptive to small businesses. One recent survey of 4,000 small-business owners found that the biggest challenge of tariff policies is the sheer uncertainty they cause. This isn’t just a problem for small-business owners themselves. These companies employ nearly half of working Americans and play an essential role in the U.S. economy. That may partly explain why Americans overwhelmingly support small businesses, viewing them as positive for society and a key path for achieving the American dream. If you’re skeptical, just look at the growing number of MBA graduates who are turning down offers at big companies to buy and run small businesses. But this consensus doesn’t always translate into policies that help small businesses thrive. In fact, because small businesses often operate on thinner margins and have less capacity to absorb disruptions, any policy shift is likely to be more difficult for them to weather than it would be for a larger firm with deeper pockets. The ongoing tariff saga is just the most recent example.
Slow, steady policies help small-business owners
Given these realities, we recommend the final negotiated changes to trade policy be rolled out slowly. Although that wouldn’t prevent businesses from facing supply chain disruptions, it would at least give them time to consider alternate suppliers or prepare in other ways. From the perspective of a small-business owner, having that space to plan can make a real difference. Similarly, if policymakers want to bring more manufacturing back to the U.S., tariffs alone can accomplish only so much. Small manufacturers need to hire people, and with unemployment at just over 4%, there’s already a shortage of workers qualified for increasingly high-skilled manufacturing roles. Making reshoring a true long-term policy objective would require creating pathways for legal immigration and investing significantly in job training. And if the path toward reshoring is more about automation than labor, then preparing small-business owners for the changes ahead and helping them fund growth strategically will be crucial. Small businesses would benefit from more government-backed funding and training. The Small Business Administration is uniquely positioned to support small firms as they adjust their supply chains and manufacturing – it could offer affordable financing for imports and exports, restructure existing loans that small businesses have had to take on, and offer technical support and education on new regulations and paperwork. Unfortunately, the SBA has slashed 43% of its workforce and closed offices in major cities including Atlanta, Chicago, Denver, New Orleans and Los Angeles. We think this is a step in the wrong direction. Universities also have an important role to play in supporting small businesses. Research shows that teaching core management skills can improve key business outcomes, such as profitability and growth. We recommend business and trade schools increase their focus on small firms and the unique challenges they face. Whether through executive programs for small-business owners or student consulting projects, universities have a significant opportunity to lean into supporting Main Street entrepreneurs. Thirty-five million small businesses are the engine of the U.S. economy. They are the job creators in cities and towns across this country. They are the heartbeat of American communities. As the nation undergoes rapid and profound policy shifts, we encourage leaders in government and academia to take action to ensure that Main Streets across America not only endure but thrive. The authors would like to thank Gretchen Abraham and Matt Sonneborn for their support.Peter Boumgarden, Professor of Family Enterprise, Washington University in St. Louis and Dilawar Syed, Associate Professor of Instruction, Department of Business, Government and Society, The University of Texas at Austin This article is republished from The Conversation under a Creative Commons license. Read the original article.
Small Business Saturday is a celebration of the vibrant shopping opportunities within our own communities. This annual event, held on the Saturday after Thanksgiving, encourages us to support local businesses that contribute to our economy and employ a significant portion of the workforce. By shopping at small businesses, we not only find unique and high-quality gifts but also nurture our neighborhoods, tax base, schools, and infrastructure. These businesses take pride in their craftsmanship, offering handcrafted items that make for thoughtful presents. So, when shopping this holiday season, remember to explore local stores, ask for assistance, and discover hidden gems while supporting your community.
Helping Kids Make Money Lessons Real in a Digital Age
(Family Features) In today’s world, it’s rare for kids to hand over a few crumpled dollar bills for a purchase. Most transactions happen online or with a tap of a card, which can make money feel less tangible to the next generation. However, that shift doesn’t mean financial lessons have to get lost – it just means they should be taught differently. From budgeting for a favorite purchase to learning about investing, the digital landscape provides ample opportunities to help kids build smart habits. Teach Real-World Money Management with Digital Tools One way to start is with a kid-friendly debit card connected to an app. These accounts allow children to manage their own spending while parents monitor activity. Being able to check balances in real time – and seeing the impact of a purchase immediately – helps kids understand budgeting in a hands-on way. When the balance gets low, the lesson is clear. Parents can also use digital purchases as teachable moments. A $10 virtual item in a game might sound appealing, but comparing it to something tangible, like a trip to the movies or a special snack, can help kids think about trade-offs and decide what’s worth the money. Use Saving Goals and Compound Interest to Encourage Smart Habits Saving is another concept technology can make more tangible. Setting a goal such as a new bike, a sports jersey or a piece of tech becomes more engaging when children can track their progress visually. Some apps even offer interest on savings, giving kids a first glimpse of how money can grow over time. As children grow into teens, their curiosity about money often expands into investing. This can be an ideal time to open a custodial brokerage account and explore concepts like diversification, risk and long-term strategy. Purchasing fractional shares of companies they recognize can make the learning process relatable. Teach Credit, Debt and Security Early It’s also important to cover topics like credit, debt and security before kids start managing money on their own. Teens should understand how borrowing works, why paying bills on time matters and how to protect themselves from identity theft. In some cases, freezing a minor’s credit until they are older can be a smart precaution. Keep the Conversation Going Above all, money lessons should be an ongoing conversation. Asking kids what they’re hearing from friends, teachers or online sources can lead to meaningful discussions and create teachable moments. The tools may have changed, but the goal remains the same: helping kids develop the skills and confidence to manage money wisely. By meeting them where they are in the digital world, parents can make financial lessons real, relevant and lasting. Visit schwabmoneywise.com for more ideas on how to help kids start saving, investing and more with videos, quizzes and articles designed especially for teens. Photo courtesy of Shutterstock SOURCE:Charles Schwab
(Family Features) Businesses that run efficiently often find continued, long-term success. However, running a small business comes with a multitude of challenges that can hinder productivity.
Between hiring employees, managing payroll, handling customer relations, delivering products, meeting with staff and other tasks, it’s important to take steps to help your business work smarter, not harder, while maintaining productivity. More efficient workdays mean more projects or tasks can be completed, giving you an advantage in a competitive marketplace.
To help improve productivity and create a more efficient work environment, consider these tips from the experts at Pitney Bowes, a global shipping and mailing company that has worked for more than 100 years to provide technology, logistics, financial services and solutions that help enterprises thrive and small business owners operate right from their homes including the PitneyShip Cube, which simplifies shipping packages and e-commerce orders while saving time and space.
Set Goals Setting goals for your operation is vital to building a productive business and ensuring your employees understand your vision and how they can actively contribute to the company’s success. Whether you’re a startup or an established business with multiple employees, set realistic, well-defined goals that are in line with your business strategy, like investing in office tools and solutions that can help you discover efficiencies. Periodically revisit those goals to ensure you’re on track to meet them and make any adjustments as necessary. For example, working from home may provide an opportunity to save on rent and enable you to allocate those savings toward upgraded office equipment.
Delegate Less Critical Responsibilities Remember, you can’t do it all by yourself. In the same way it’s important to prioritize your list of tasks, delegation is key to improving productivity. Passing on some of the work, such as designing email templates, writing blog posts, creating white papers and more, to your employees allows you to maximize your limited time. Think through additional ways for others to lessen the load, like using a cloud-based shipping solution to streamline the process and ensure alignment in task sharing. Even if you’re a solo entrepreneur, look at what tasks you may be able to outsource to a third-party vendor to free up some of your time.
Simplify Shipping If your business sells a product, shipping may be a time-consuming, expensive part of your operation. Leave the post office behind and save valuable time with an option like the PitneyShip Cube, an all-in-one, Wi-Fi-enabled thermal shipping label printer with a built-in scale. It includes companion software and can integrate with your current online store to automatically import order details then easily print the shipping labels and postage. You can weigh packages, compare discounted shipping rates and automatically share tracking notifications via email.
“One of the biggest barriers for small businesses are shipping costs,” said Shemin Nurmohamed, president, sending technology solutions, Pitney Bowes. “Our goal is to allow clients to take advantage of what larger shippers get in terms of discounts while saving them the critical time they need to work on their core businesses. With the PitneyShip Cube, the first shipping label printer of its kind with a built-in scale and companion software, users are able to ship faster and smarter. This product is ideal for both e-commerce and office shippers looking to save time and space by streamlining their processes and eliminating unnecessary equipment. Plus, it can save users money as it provides a discount of 3 cents on First Class stamps, up to 89% on USPS Priority Mail and up to 82% off UPS standard rates.”
By completing all the necessary tasks beforehand, you’ll skip the post office line and allow yourself to focus on more profitable endeavors. You can also track parcels throughout their shipping journey with data that can be shared with customers for a smooth shipping experience.
Streamline Software A quick and easy way to increase productivity and efficiency is taking advantage of technology like software as a service platforms. Particularly true in this age of hybrid and remote workers, cloud-based communications software can keep your team members on the same page, regardless of their location, to help your company keep up with important information such as ever-changing carrier rates to quickly identify the best shipping and fulfillment options. With available platforms that combine team messaging, video conferencing, task management, file sharing and storage, it can be simple to stay connected with your employees. Additional cloud-based software for everything from payroll to word processing and graphic design is also readily available to help further streamline your business’s technology. Knowledge is power and combining all this information in one place can give you greater control over your organization as a whole.
Learn from Your Customers When looking for ways to improve, start by asking your customers for honest feedback. Creating customer satisfaction surveys provides you with a fresh perspective while giving customers a voice so they can feel valued. Plus, it can help you build a rapport with customers as they know their voices are heard while you discover what’s working, what isn’t and ways you can improve the business.
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Find more solutions for improving your productivity and efficiency in the workplace at pitneybowes.com.
