Trump’s 2024 Victory: A Boost for Tech Entrepreneurs and the Business Channel
The 2024 US Presidential Election has concluded, and Donald Trump’s victory is being hailed as a significant moment for American businesses, particularly in the technology sector. Entrepreneurs and solution providers are celebrating what they see as a path to economic prosperity and a favourable environment for innovation, particularly in the rapidly growing field of AI-powered businesses.
As Future Tech Enterprise CEO Bob Venero put it, Trump’s win represents “a positive shot in the arm for American business and technology entrepreneurs” who are poised to drive the next wave of economic growth. But what exactly does this victory mean for businesses, particularly tech-focused solution providers who are looking to capitalise on emerging opportunities?
Let’s break down the reasons why many business leaders, particularly those in the tech industry, are optimistic about a Trump presidency and what it could mean for the future of American entrepreneurship.
How Trump’s Presidency Fuels Innovation and Growth
Bob Venero, who founded Future Tech Enterprise in his basement in 1996 and now ranks as one of the top solution providers in the country, believes that Trump’s background as a businessman uniquely qualifies him to create an environment conducive to business growth.
“Technology is the economic driver of both the national and global economy,” said Venero. “It drives billions of dollars globally, creating jobs and opportunities for the next generation of entrepreneurs.”
Venero, along with other tech entrepreneurs, sees Trump’s win as a crucial moment for businesses focused on AI and other emerging technologies. These industries are expected to shape the global economy in the coming years, and for entrepreneurs, now is the time to build the businesses of tomorrow.
Key factors that tech entrepreneurs are banking on:
- Pro-business tax policies that could reduce financial burdens on small and medium-sized businesses.
- Innovation incentives such as tax breaks for research and development that encourage cutting-edge tech advancements.
- Support for reshoring manufacturing and increasing American-made goods, which could help companies cut costs and boost profitability.
Trump’s Tax Policies: A Game Changer for Solution Providers
One of the key drivers of optimism among solution providers and tech entrepreneurs is Trump’s tax policy, which is expected to offer significant relief to small businesses and entrepreneurs.
- Corporate tax cuts: Under Trump, the corporate tax rate was reduced from 35% to 21%. Trump has suggested further reducing this to 15% for US-based manufacturers, which could benefit tech manufacturers and solution providers who rely on low-cost production to stay competitive.
- Bonus depreciation: The Tax Cuts and Jobs Act (TCJA) introduced a 100% bonus depreciation on certain capital investments, allowing businesses to immediately deduct the cost of qualifying property. This provision is set to phase out in the coming years unless Congress intervenes. Trump has advocated to extend this provision, which would help solution providers invest in the technology and infrastructure needed for AI and cloud services.
- Qualified business income (QBI) deduction: The QBI deduction allows pass-through businesses to deduct up to 20% of their income, benefiting small businesses and those structured as sole proprietorships, partnerships, or S-corporations. Trump’s plan to keep this deduction intact is seen as a boon for entrepreneurs.
For solution providers who often work on tight margins, these tax policies could provide much-needed financial breathing room, enabling them to reinvest profits into new technologies, employee expansion, and R&D.
Mixed Views on Tariffs: Opportunities vs. Challenges
However, not all of Trump’s economic policies are seen as universally positive. His stance on tariffs is a source of debate among solution providers. Trump has advocated for higher tariffs on imports, particularly from China, with the aim of encouraging U.S. manufacturing and reducing the trade deficit.
For some entrepreneurs, particularly those in the hardware space, this could result in higher costs for the components they need to run their businesses. According to a report by the Consumer Technology Association, tariffs on imports could drive up the price of tech products, such as laptops, tablets, and smartphones, by as much as 46% and 26%, respectively.
However, some solution providers are hopeful that Trump will offer tax breaks or grants to offset the higher costs caused by tariffs, particularly for businesses that rely on tech products manufactured overseas.
One CEO, speaking anonymously, noted that reshoring manufacturing during Trump’s first term had been a positive step for the industry, and they are optimistic that a second term could help rebuild U.S. manufacturing and reduce dependence on overseas suppliers.
Tax Breaks for Small Businesses: A Key Focus for Entrepreneurs
While the larger business community may be more focused on corporate tax cuts, Trump’s policies also include provisions aimed at helping small businesses. For example:
- Expanding the startup tax deduction: Trump’s proposed policies could increase the startup tax deduction from $5,000 to $50,000, which would significantly help entrepreneurs who are just starting out and need to offset their initial investment costs.
- Research and development incentives: Trump has pledged to continue offering tax breaks for businesses that invest in research and development. This could benefit tech entrepreneurs and solution providers who rely on innovation to stay competitive in the AI, cloud, and cybersecurity industries.
For entrepreneurs like Kathy Durfee, CEO of TechHouse, a small business-focused solution provider, these incentives could help level the playing field for startups and give them the financial leverage they need to grow and scale their operations.
Optimism Amid Division: The Road Ahead for Solution Providers
Despite the divisive nature of U.S. politics, many solution providers feel that Trump’s policies offer a more business-friendly environment, particularly in terms of tax relief and regulatory reforms. Even those who remain cautious about certain aspects of his economic agenda recognise the potential for growth.
Jason Wright, CEO of Avatar Managed Services, based in Houston, Texas, remains optimistic about the future of tech businesses, regardless of political shifts:
“We’re poised for growth because of the big impact technology has on productivity. Trump’s policies could provide a boost to capital markets, and businesses of all kinds will benefit from a stronger economy.”
Ultimately, the 2024 election results signal a period of uncertainty for some, but for tech entrepreneurs and solution providers, the outlook remains largely positive, particularly if tax policies, research incentives, and business-friendly regulations continue to favour the growth of innovation and entrepreneurship.
Conclusion: A New Era for Tech Entrepreneurs
Trump’s victory in the 2024 U.S. Presidential Election marks a significant moment for American businesses, especially in the technology sector. For solution providers and tech entrepreneurs, the future looks bright, with the promise of tax relief, innovation incentives, and a more favourable regulatory environment.
While there are challenges—particularly around the impact of tariffs—the overarching sense among entrepreneurs is that a Trump presidency will help foster economic growth, encourage innovation, and create opportunities for businesses to thrive in the rapidly evolving AI and tech industries.
Relevant Links for Further Reading
