It was an extremely close call. The world waited up throughout the night and watched state after state teetering between the red and blue. Some reeling from the news, the dust of Trump’s presidency is beginning to settle, ready for him to officially take up post in January.

With clear allegiances in some areas more than others, we can surmise that pharmaceuticals, corporate banks and transportation are just some of the industries that will benefit from the Republican billionaire’s presidency.

With an estimated 28 million SMEs in America, the economy is supported by local and small enterprises, but how will entrepreneurs be affected by the change in term?

Interestingly, the state with the largest SME quotient, California, was vehemently in favour of Clinton, so much so that there has been talk of a Calexit from the US. Does this signify the rift between small business and the Trump presidency?

Trump has stated he has an agenda of lowering taxes and simplifying the tax code, which should have the effect of relieving small businesses of excessive regulation and red tape: all positives for small business owners.

What are the possible implications of a Trump presidency and how can small businesses protect themselves in times of such great economic instability?

How will the US dollar be affected?

Markets went haywire around the time of the election, with volatility noted by financial experts, brokers and financial service providers such as ETX Capital in some of the safest currencies such as Japanese Yen and Swiss Francs.

The dollar immediately plummeted and has since bounced back, with some predictions that it’ll reach parity with the Euro. Ultimately, the future of the dollar remains unpredictable, despite many claims supporting the idea of Trump’s election being either beneficial or threatening to the currency.

Trump wants the US to rely less on energy sources in the Middle East

In the short term, there is bound to be further ambiguity in the forecast of the dollar’s place, with global currency being as unstable as it is.

The medium to long term future of the dollar may be affected in one of two ways, dependent on Trump’s international relations and the success of the decisions surrounding the economy. Essentially it is still too early to predict, and SMBs should be considering how they can protect themselves in light of the uncertainty.

#1 Economic independence

With the recent discovery of the Wolfcamp Shale site in Texas making big news in the US this month, there is indubitably a question about the development of a more energy self-sufficient and independent America in years to come. No decision has been formalised yet regarding the extraction of oil from Wolfcamp, but Trump has already announced his intention to ban Saudi oil.

A stronger and independent US economy will be good news for small businesses, in theory. With more money being kept in circulation within the country, more should be spent on small, local business.

However, the severing of ties with Saudi Arabia could mark the beginning of independence moves. Ostracising other countries will ultimately be a red flag for those SMEs who focus on overseas trading and may be seeking foreign investment. Many SMEs and SMBs currently outsource certain elements.

Trump intends to give entrepreneurs incentives to keep their workforce within the US. Either way, the message is for small businesses to keep their eyes on international markets and relations.

#2 Minimum Wage Increase

In the run up to the election, Trump relied heavily on the promise of an increased minimum wage, in order to try and secure votes. This is something which should be addressed, and theoretically leads to equality. However, as a businessman, Trump must be aware of the impact this has on small businesses, who are often struggling with finding wages at all.

That said, the implementation of a higher minimum would improve the economy in general due to giving everyone more spending power, thus ploughing money into the local economy.

It's goodbye to all that

The future of wages in the US is still unclear, as protests rage across the country for doubling the current wage. In any case, a change to the country’s minimum wage will impact on employers and should be monitored as part of business growth plans.

#3 Cutting Obamacare

Entrepreneurs have found Obamacare a contributing factor into giving them the freedom to cut loose from the corporate world and set up on their own.

With 54% of the country’s economy coming from the SMB world, there is no question that entrepreneurs and small businesses are vital to the economy. Trump’s plan to repeal Obamacare could drive some individuals back to depending on employers for healthcare, meaning there may be a decrease in entrepreneurship.

The financial hit caused by rescinding Obamacare may also cause entrepreneurs to exercise caution on creating more jobs. Currently 99.7% of new jobs are provided by SMBs, which could drop once the affordable healthcare plan has been removed.

#4 Taxes

It’s not all doom and gloom, however. As a businessman himself, Trump has experienced entrepreneurship and knows exactly which challenges are faced by small business owners. Opposing corporate tax inversion, he plans to simplify taxes, which will remove liability for individual rates.

This should benefit small businesses from individuals freelancing, to family run SMBs. Despite the large number of small businesses in America and their contribution to the economy, most are operating with just 1 to 3 employees. This means taxation can be attributed to their personal tax returns, and deductions for wages can be leveraged.

Essentially, there are always challenges for small businesses and the full effects of Trump’s presidency on the economy and entrepreneurship still remain to be seen. Entrepreneurs in some sectors will benefit more than others and with judicious choices, everyone can benefit by keeping a close eye on markets.