President Trump’s recent decisions, including revoking civil rights-era policies and reshaping intellectual property laws, signal a transformative shift that will affect small businesses across the U.S. His administration’s recent focus on dismantling diversity, equity, and inclusion (DEI) programs while emphasizing stronger intellectual property (IP) protections brings both opportunities and challenges for small businesses.
Here’s a breakdown of how these changes might impact entrepreneurs and small companies.
Changes to Equal Employment Opportunity Protections
One of President Trump’s significant actions this week was revoking Executive Order 11246, an important civil rights-era policy. Initially signed by President Lyndon B. Johnson in 1965, this executive order prohibited federal contractors from discrimination based on race, religion, sex, and other protected characteristics while requiring affirmative action to ensure equal opportunity. Under Trump’s new directive, federal contractors will no longer be held accountable for diversity efforts or affirmative action in hiring practices.
For small businesses, this decision represents a potential shift in expectations for diversity programs. While businesses outside the federal contracting sector won’t be directly affected, Trump’s focus on eradicating DEI initiatives could pave the way for similar actions in the private sector. Companies should review their DEI programs to ensure compliance with federal civil rights laws and consider consulting with legal experts to navigate the evolving landscape.
The Future of Intellectual Property Laws
Intellectual property (IP) law has long been a key focus for Trump, especially regarding international trade and IP enforcement. His administration has been particularly aggressive in combating counterfeit goods and ensuring that American companies, especially small businesses, are protected from unfair competition, particularly from China. As Trump returns to office, it’s expected that IP protections will be even stronger, which could lead to more stringent tariffs, import controls, and penalties for IP violations.
Small businesses reliant on international suppliers may face higher costs due to new tariffs on imported goods. To mitigate potential supply chain disruptions, businesses should consider diversifying suppliers or exploring domestic manufacturing options.
Moreover, Trump’s reappointment of Coke Stewart as acting director of the U.S. Patent and Trademark Office (USPTO) could signal a shift in patent policies that favor American inventors.
Small businesses and entrepreneurs with patented innovations should stay alert for potential changes to patent law that might offer stronger protections or reduce the cost and complexity of patent disputes.
In line with his pro-business stance, Trump’s administration has advocated for deregulation, which could extend to IP filings. Reducing administrative barriers and registration fees could make it easier and more affordable for small businesses to protect their intellectual property. By lowering IP-related costs, Trump’s policies might open new avenues for entrepreneurs to safeguard their ideas, innovations, and branding, providing a more accessible environment for growth.
On the other hand, as the digital landscape continues to grow, Trump’s policies could focus on tightening IP regulations in the digital sphere. For small businesses involved in e-commerce or digital content creation, this could mean stronger protections against online infringement and counterfeit products. Small businesses should bolster their digital IP strategies by registering trademarks and copyrights and monitoring online platforms for potential violations.
In conclusion, President Trump’s return to office could bring a combination of opportunities and obstacles for small businesses. While stronger IP protections and deregulation may create a more favorable environment for growth, businesses will need to stay informed and adaptable as policies continue to evolve. By carefully monitoring changes in both DEI and IP landscapes, entrepreneurs can position themselves to thrive amid these new challenges.
