As 2013 comes to a close, business owners have 2014 to look forward to. There are some unanswered questions as to what 2014 is going to bring US business owners. The economy is still in trouble, there’s the debt, and the abysmal handling of Obamacare is weighing on their minds. Many business owners are cautious going into 2014 and this is for good reason. There will be a number of business challenges in 2014 to overcome for your business to continue growing.
Business Challenges in 2014
Economy
The recent US shutdown showed Americans how dysfunctional Washington still is and these problems could creep up again in February when there may be another showdown in Washington over the debt. The uncertainty of the economy is over everyone’s head and the ballooning debt isn’t helping things. There may not be any substantial growth in 2014 if things continue along the current path and there could be a contraction due to recent issues with the debt. In the 1st and the 2nd quarters of 2013, the US economy grew only 1.1 percent and then again by 2.5 percent in the second quarter. Growth maybe 1.5 in the 3rd quarter, but this may be cut back due to the shutdown that stalled the economy for some time. The fiscal uncertainty is a real problem going into 2014 and some experts say 2014 could bring a recession unless things are ironed out.
Obamacare
Well, it’s actually called the “Patient Protection and Affordable Care Act.” The entire Obamacare fiasco has impacted the economy and the entire website for Obamacare doesn’t even work properly. There are rising healthcare costs for many businesses due to this new system and some are having a tough time affording these new insurance costs. For a new business, this is even more problematic. Until the entire system can be worked out it presents problems for businesses going into 2014. Many businesses are replacing full-time workers with part-time workers and many of these businesses say the system makes it harder for them to hire new workers.
Debt
The debt in America is also playing a role in the feeling of businesses going into 2014. The fact that the US government doesn’t seem able to fix the problem or lessen its impacts, is causing concern for these businesses and how they move forward into the future. The debt reduces investor confidence and inflation is slowly creeping up which reduces the buying power of consumers. There’s also the specter of another crisis such as the recent government shutdown or another debt crisis such as the recent debt ceiling problem. All these issues reduce the overall confidence of businesses and their customers. There’s a lot of uncertainty going into the 2013 Christmas season and if there’s a bad outcome, this could carry over into 2014 for many businesses.
Business challenges in 2014 won’t be hard to find and until these are addressed the US economy and growth could be in jeopardy.
If the national debt remains high for a long period of time, it can lead to a decline in investor confidence and an increase in interest rates, or it may cause the Federal Reserve to create large amounts of money, which can result in inflation. Both outcomes can have a negative impact on the business climate. This article applies to both new entrepreneurs and those who already have a business. Either way, be prepared to overcome these obstacles!