By Joshua Kirshbaum, Co-Founder of Impact Ventures International
https://www.impactventuresint.com/weare/team/joshua-kirshbaum

As the co-founder of Impact Ventures International, I work alongside changemakers, entrepreneurs, and nonprofit leaders who are building sustainable futures. One thing I hear all the time from small business owners is, “I try not to get caught up in the news — it doesn’t really affect my world.”

But the truth is, in today’s interconnected economy, world news isn’t just background noise — it’s a live signal that can either reinforce or shake your business’s stability.

Whether you’re running a coffee shop in Detroit or a digital marketing firm in Denver, what happens on the international stage impacts your bottom line — sometimes overnight. In this blog, I want to unpack how that’s true, highlight current events you should be watching, and offer practical strategies to turn uncertainty into sustainable growth.

The Myth of Local Isolation

There was a time when “support local” meant businesses could operate in silos, untouched by global headlines. But that time has passed.

Today, you might source ingredients from Brazil, tech from China, software from Europe, and freelancers from South Africa. And even if you don’t? Your customers do. Your utilities, supplies, interest rates, and even foot traffic are influenced by things happening far beyond your city or state.

Global economic stability — or lack thereof — directly affects consumer confidence, pricing, and business operations.

🔍 Have you ever experienced a sudden price hike in your supplies or delays you couldn’t explain — only to later realize it was caused by an overseas issue?

A cyberattack on a port in the Middle East can cause your packaging costs to spike. A heatwave in India can delay cotton production, raising the cost of your branded t-shirts. World news, in short, isn’t far away — it’s a ripple that reaches your door.

4 Current Events That Are Shaping Local Business Today

Let’s get specific. Here are some key headlines from the last year — and how they’re showing up in real-time for small business owners.

1. Red Sea Shipping Crisis: The New Supply Chain Stress Test

As tensions rose in the Red Sea due to regional conflict, major shipping routes were disrupted. Global logistics giants began rerouting cargo around the Cape of Good Hope, adding weeks to delivery timelines and significantly increasing shipping costs.

What this means for small businesses:

• Longer delays for imported goods
• Increased inventory costs
• Need for clearer communication with customers about delays

Actionable Step: Diversify your suppliers or consider reshoring options. Building supply chain redundancy is no longer a luxury — it’s a sustainability strategy.

🌍 Where do your most critical supplies or tools actually come from? Do you know your Plan B if that source is disrupted?

2. The Ukraine Conflict and Global Energy Prices

Energy markets are volatile. The war in Ukraine sent shockwaves through oil and gas supply chains. Even businesses that don’t rely directly on oil have felt the squeeze — especially during colder months when heating costs surge.

Impact on small businesses:

• Higher utilities = tighter margins
• Transportation and logistics costs increase
• Consumer spending may shrink as household budgets tighten

Tip: Energy audits and efficiency upgrades can protect against volatility. Look into green grants or local sustainability programs.

🔋 Have you considered how much your energy usage fluctuates — and whether your space is optimized for cost efficiency?

3. AI Regulations in the EU and US: Big Tech, Small Biz Consequences

With AI tools now central to everything from marketing to inventory tracking, regulations are tightening. The EU’s AI Act, for instance, sets a precedent for how automation is managed ethically and transparently.

Why small businesses should care:

• Your CRM or ad tools may change features due to compliance
• Transparency in how AI makes decisions (e.g., pricing, targeting) could become legally required
• Opportunity to lead with trust: businesses that disclose how they use AI will gain loyalty

Actionable Step: Stay informed on tools you use (like Mailchimp, Canva, or Meta Ads) and understand what AI/automation is doing on your behalf.

🤖 Are you already using AI in your marketing, analytics, or customer service? If so — do your customers know? Would transparency build trust?

4. Inflation & Interest Rate Hikes: The Fed’s Local Footprint

In response to rising global inflation, the Federal Reserve increased interest rates to cool the economy. That move has massive downstream effects.

For small businesses:

• Higher borrowing costs (loans, lines of credit)
• Tighter consumer budgets = less discretionary spending
• Opportunity to build brand loyalty through pricing transparency

What you can do: Build flexibility into pricing models and consider offering payment plans or value bundles.

💸 Are your customers feeling the pinch — and if so, how have you adjusted your offers or messaging to stay accessible and sustainable?

What Smart Local Businesses Do in Response

Understanding world news isn’t about becoming an economist. It’s about learning how to anticipate, adapt, and act with clarity. Here are four things proactive small business owners do:

1. Build a Watchlist

Keep tabs on:

• Major trade routes (Suez, Red Sea, Panama Canal)
• Federal Reserve announcements
• Energy and tech regulation updates
• Emerging AI legislation

Tools like Google Alerts, newsletters, or a curated LinkedIn feed can make this manageable.

🗞️ Where do you currently get your business news? Are you confident in your sources — and do you feel equipped to filter the noise from the signal?

2. Automate and Adapt

Automation isn’t about replacing people. It’s about streamlining workflows so you have more bandwidth to think, plan, and pivot. AI tools can help with customer service, marketing, forecasting, and even competitor tracking — just make sure to balance automation with transparency and ethical use.

📈 What’s one repetitive task you or your team are still doing manually that automation could simplify this month?

3. Strengthen Local Relationships

In times of instability, your most resilient asset is your network. Invest in partnerships, join a local chamber or circular economy initiative, and communicate with customers regularly. When people know your values and see your efforts, they’re more likely to stay loyal — even when prices shift.

🧩 Who are your go-to collaborators, suppliers, or neighbors you could lean on in a pinch? How might you deepen those connections this year?

4. Lead with Sustainability

Consumers increasingly want to support businesses that are planet- and people-conscious. From sourcing to packaging to energy use, global volatility makes it more important than ever to bake sustainability into your operations.

🌱 What’s one small shift your business could make toward sustainability that wouldn’t cost you more — but might earn you more trust?

Don’t Fall into These Traps

1. Tuning Out the Noise Entirely

Avoiding the news won’t protect you from its effects. Build a rhythm that works — weekly updates, a 10-minute podcast, or just subscribing to a newsletter that simplifies the chaos.

2. Overreacting to Every Headline

Not every news event requires a pivot. Use frameworks or advisors to determine when and how a shift affects you.

🧠 Who do you turn to for perspective before making a business shift based on big news? Is there someone in your circle who helps you zoom out?

3. Neglecting Contingency Planning

Hope isn’t a strategy. Take time each quarter to review your risk areas: what are your backup options for shipping, hiring, and capital?

A Local-Global Business Mindset

The best small businesses today aren’t just reacting — they’re building forward. That requires what I call a “local-global lens.” It’s the ability to run your business with intention on your block while understanding the global forces that shape your customers, your costs, and your future.

At Impact Ventures, we work with nonprofits and social entrepreneurs who are navigating similar tensions. We see how fiscal sponsorship, resource-sharing, and community-centered sustainability can help small orgs weather storms and lead boldly.

If you’re part of a co-op, nonprofit, or informal business structure, now’s the time to formalize your foundation and fortify your systems. Lean into fiscal sponsors or umbrella networks. The world is changing fast — resilience starts with preparation.

In Closing: Stay Curious, Stay Ready

We live in a world where a war in Eastern Europe, a cargo ship in the Suez, or a bill in Brussels can impact your Tuesday sales. That’s not meant to scare you — it’s meant to empower you.

As a small business owner, you are uniquely positioned to pivot faster, build deeper relationships, and make more sustainable choices than big institutions. But you can’t do that with your head in the sand.

Stay curious. Watch the news with a lens that matters. Act locally, but think globally. That’s how you future-proof your business — and your impact.

If you’re building something rooted in sustainability and resilience, I’d love to hear from you.

💬 How have recent global events changed the way you run your business — or how you want to?
Drop a comment, send a message, or share your story. Let’s keep this conversation going.