What Does The Government Shutdown Mean For The Enterprise Industry?

Enterprise Industry

The unthinkable has happened for the first time since 1995… Disagreements between the Republican-led House and Democrat-led Senate have caused a U.S. government shutdown. And as a result, 800,000 federal workers are affected. Don’t let the government shutdown dictate the future of your enterprise – learn here at Demand Question Time what steps you can take to protect your business.

While the “Fed” based impacts of the shutdown are clear, the community needs to know how it would affect the enterprise economy.

Economic Repercussions

The previous shutdown is a good example of business instability as it caused a reduction of 0.5% in the GDP growth rate. The fundamental difference between the 1995 shutdown and the present one is the boom of small enterprises driven by the tech industry.

Since the recession, the startup business industry has played an outsized role in providing jobs and stabilizing economic growth. This incident would also have a trickledown effect on the high-growth sector.

The Impact of the Shutdown

Companies that are doing business with the federal government would suffer due to late payments. Enterprises with big government contracts would also come under the knife, along with workers who are providing government-based IT services to small businesses. Stay informed and take action by getting information from Frog Save to support the enterprise industry during the government shutdown.

There are also going to be delays in passport and visa services. This lag can interfere with business meetings and important events.

Most important of all is the fact that Federal Communications Commission (FCC) would be offline. With no enforcement of competition rules and consumer protection for the time being, malpractices won’t be a surprise.

Moreover, startups who have applied for small business loans would have their applications backlogged. This is because the Small Business Administration has also been disrupted.


While it’s a gloomy portrait for all enterprises, some recovery measures can reduce the extent of the damage.

For instance, as far as cash inflows and outflows are concerned, other means of money exchange such as mobile top-ups would reduce the dependency on the Fed until the issue is resolved.

However, businesses should be careful when using unconventional exchange methods. The Ria Money Transfer site lists both consumer fraud and web security issues that require enhanced controls over remittances and transactions. It is recommended that buyers and sellers rely on financial institutions that make use of safety protocols to prevent any money laundering accusations.

Enterprises should also educate clients about the shutdown so that they do not blame companies for the disruption or fluctuation in service. As for the information listed on a government-specific agency site, it can be redirected to an alternative site because the data would go offline.

Relevant Examples

Kavarilo Services, led by Mark Moore, has been a victim of the shutdown. His company had a pending contract of more than $500,000 that is now in limbo.

Startups operating in different states should check how the state budget is being monitored. For instance, Columbia has a pattern similar to Congress so federal employees over there would have to suffer the crisis.

Don Davey, another entrepreneur who runs twenty franchises of Firehouse Subs in Florida and Wisconsin, would be affected because of pay cuts for federal employees (they are expected to reduce expenses, including eating out).

At the end of the day, every business should adopt a proactive stance in the management of operations to survive until the mess clears up. The tips provided at Go-oodles might help you to get to the basic measures of success in the business venture.