Author: Kirsten Barker

Impact of US Tariffs on Small Business

Donald Trump’s push to expand tariffs—taxes on imported goods—could significantly impact small businesses by increasing the cost of raw materials and components, especially for those reliant on global supply chains. This would raise production expenses, squeeze profit margins, and potentially force small businesses to increase prices or reduce operations. Uncertainty surrounding trade policy may also deter business investment and disrupt consumer confidence, creating a more volatile environment for small enterprises. To read more about the impact of tariffs, check out this article in The Guardian.

Insights from the 2024-25 GEM (Global Entrepreneurship Monitor) Report

Entrepreneurial activity in the U.S. has bounced back to a historic high, with a diverse group—including veterans, immigrants, and underrepresented communities—actively launching businesses, though many are doing so out of necessity rather than opportunity.

Digital tools, AI, and sustainability are becoming increasingly important, especially among younger entrepreneurs, and women are making international strides despite persistent confidence gaps. Black and Hispanic individuals show especially high optimism and motivation for entrepreneurship, highlighting the need for targeted support to fuel inclusive economic growth.

To read more details from this report, see this link.

Why 2025 Is a Great Time to Start a Small Business

2025 is shaping up to be a great year for small businesses. With AI, automation, and digital tools leveling the playing field, small businesses can innovate faster than big corporations. There’s more support than ever—grants, training programs, and online platforms make entrepreneurship accessible. (To see our list of grants and opportunities for small businesses, check out this link)

Consumers are also prioritizing values like sustainability, giving small businesses an edge in building authentic connections. Plus, remote work is expanding opportunities, making it easier to find talent and reduce costs. If you’ve been thinking about starting a business, now might be the perfect time! To read more about this, see this article in Kiplinger.

Women of Courage: Speaking Truth, Driving Change

Bravery inspires us most, particularly when women use their platforms to speak truth to power and unite for change, following in the footsteps of past activists like the suffragists, whose courage set a blueprint for today’s movements. Women such as Alexandria Ocasio-Cortez, Rachel Maddow, Jane Fonda, Nicole Kidman, Rep. Jasmine Crockett, and the ‘Meno-Posse’ continue this legacy by holding leaders accountable, advocating for justice, and reshaping conversations on politics, media, and social issues. Read more about these stories at this link to The Story Exchange.

Factors That Can Make or Break Your Small Business Growth

Starting a business is thrilling, but success depends on more than just a great idea—it requires strategic planning to navigate potential obstacles like shifting consumer trends, economic conditions, and workforce availability. Factors such as business costs, digital infrastructure, local competition, access to funding, and regulatory policies can significantly impact growth and sustainability. By researching these elements in advance, entrepreneurs can make informed decisions that position their businesses for long-term success in the right location. To read more about this, check out this article in BNO News.

Why Women-Led Startups Outperform but Still Get Less Funding

Women entrepreneurs often face biased investor questioning, with men receiving promotion-oriented questions and women receiving prevention-oriented ones, contributing to female-led startups receiving only 2% of funding despite outperforming male-led counterparts.

Addressing this gap requires promoting women to decision-making roles in investment firms, raising awareness of unconscious biases, redefining success metrics, integrating women into existing networks, offering mentorship programs, and encouraging young women to pursue careers in investment to foster a more inclusive and balanced entrepreneurial ecosystem.

To read more on this topic, check out this article in Reuters entitled “Comment: Women entrepreneurs don’t need more confidence. They need more capital”

Breaking out of the Side Hustle Mindset

Many women start side hustles for flexibility and financial security, but staying in a side hustle mindset limits growth, income, and long-term success. To build real wealth, women must shift from seeing their businesses as extra income to treating them as scalable ventures by setting ambitious revenue goals, investing in marketing, and creating systems that allow for expansion.

To read more on this, see this article in Forbes entitled “Beyond The Side Hustle: Why You Must Think Bigger About Your Business” (note: Forbes has a paywall but you get 4 free articles if you don’t have a subscription)

How Small Business Is Using AI

Small businesses are increasingly adopting generative AI to improve efficiency, streamline operations, and enhance hiring, with about a third experimenting with it and a quarter already seeing benefits.

AI helps small businesses compete with larger corporations by automating tasks, improving communication, and freeing up time for strategic growth. Examples include using AI for grant writing, training videos, brand strategy, and contract management. While challenges like data security remain, business owners are carefully integrating AI to enhance productivity and workforce engagement. See this piece posted on CNBC for more details!

Things To Consider Before Diving Into The Restaurant Business

Investing in a restaurant requires careful planning and due diligence. Experts emphasize that restaurant investments take time to become profitable—typically at least two years—and should be viewed as part of a broader financial strategy, potentially involving property acquisition. Choosing the right investment structure, such as an LLC, can help manage tax implications and liability risks. Success in the industry depends heavily on the right team, as motivated staff contribute significantly to a restaurant’s stability. Investors should also consider the restaurant’s customer base and local market conditions, ensuring there is demand and differentiation from competitors. Reviewing financials is crucial—messy or unrealistic projections signal risk. Lastly, scalability matters, with the best opportunities often involving experienced operators who have already built a successful location and are looking to expand. To read more about this, see this article from US News and World Report entitled “6 Facts To Know Before Investing in a Restaurant”.

Small Business and Entrepreneurship in the US After COVID

According to this report issued by the US Department of the Treasury in September 2024, small businesses are thriving in the post-pandemic economy and playing an even bigger role in job creation than before. Since 2019, they’ve generated over 70% of net new jobs, with entrepreneurship surging—averaging 430,000 new business applications per month in 2024, a 50% increase from 2019. Business optimism is on the rise as inflation concerns ease, and more small business owners expect revenue growth in the coming year. Importantly, entrepreneurship is becoming more diverse, with record numbers of women and minority business owners entering the space.

However, challenges remain, particularly in securing credit, as lending conditions remain tight. Despite these hurdles, the data suggests that now is an especially good time to start and grow a small business in the U.S., with strong policy support and a resilient economic outlook.