Trade wars may or may not hurt the global economy, but the small business sector has a lot of potential to benefit. For decades, global trade has dominated the market. Cheap manufactured products have saturated store shelves. That could change, thanks to the trade wars.
The trade wars make it easier for small business owners to gain the market share they deserve. Small businesses that sell handmade items ranging from Cuckoo Forest’s Black Forest Cuckoo clocks to customized switch plates now have the opportunity to have their products front and center.
Consumers are rediscovering the fine quality and craftsmanship that goes into handmade items, in particular. They have always desired unique items, but been unable to get them from big box retailers with prices too low to resist. Now, consumers are again noticing the availability of unique items at prices that are fair to the ones putting their own sweat equity into making them.
Even small businesses that don’t sell handmade items stand to gain from the trade wars. With less influx of manufactured products from overseas, both the government and banks are starting to increase their support of the small business enterprise. Small business loans may become easier to get approved for. Taxes on small business entities may become easier to handle.
For anyone who’s ever considered starting a small business, there hasn’t been a better time to do so than right now. There’s a perfect storm of dissatisfaction with the status quo of having our markets overrun with cheap, manufactured products that look like a million other products. Combine that with the rate of inflation that leaves less discretionary funds for families to spend. Then add in the charm and uniqueness of handmade items, or items that are not mass produced.
Finally, consumers are flocking to local small businesses because they are tired of seeing their dollars benefiting a corporate giant overseas. They recognize that when they support local small business owners, their consumer dollars stay in the community. The money funds schools, local charities and support services like local fire departments and after school programs.
Small businesses of all kinds definitely have a lot to gain from the trade wars. If they continue, we may see the economy growing in the most robust and positive way that it’s ever grown in decades.