Exporting can mean big profits for a small business. If you are not exploring export markets, you may be missing out on a world of opportunity.
Exporting is booming in the United States, and small businesses are beginning to realize that the world is their market. A business does not have to be big to sell in the global marketplace. Experience shows that small do export successfully. Finding your niche in the world market is similar to finding it in the U.S. market. Many of the same qualities that make small business owners successful in the United States apply to success in global markets.
Small business exporters can play a significant role in improving the U.S. balance of trade while protecting their competitiveness and improving their profits. Entering the overseas marketplace offers many benefits for small businesses, including
Thousands of small firms already compete in the global market. They account for 97 percent of companies involved in direct merchandise exporting, yet generate only about 30 percent of the dollar value of the nation's export sales. Small firms, then, represent the largest pool for potential growth in export sales.
Entering the overseas market does not have to be difficult. The same strategies applied in the U.S. market can be used to develop export markets. Selling abroad demands hard work, perseverance and a commitment of resources. It requires planning, market research and attention to detail. It may also involve changes, like new packaging and metric conversion.
The mystery can be taken out of exporting by considering some of the fundamental elements
of the export process:
Once you have decided to expand into the international marketplace, you need to know how to get started. There are many resources that provide assistance for small and medium-sized businesses seeking to export.
Federal Programs:
Small business exporters may benefit from a
variety of
services provided by the SBA and the U.S. Department of Commerce. Types of services include -
Export Working Capital Program:
The EWCP provides short-term, transaction-specific financing. The SBA guarantees up to $750,000 or 90
percent of the loan amount, whichever is less. Exporters may use this program for pre-export financing
of labor and materials, financing receivables generated from these sales, and/or standby letters of
credit used as performance bonds or payment guarantees to foreign buyers.
The International Trade Loan Program:
The ITL helps small businesses that are engaged or are preparing to engage in international trade, as
well as small businesses adversely affected by competition from imports. The SBA can guarantee up to
$1.25 million, less the amount of SBA's guaranteed portion of other loans outstanding to the borrower
under SBA's regular lending program.
U.S. Export Assistance Centers:
USEACs offer a full range of federal export programs and services under one roof. Clients receive
assistance by professionals from the SBA, the Department of Commerce, the Export-Import Bank of the
United States, and other public and private organizations.
Service Corps of Retired Executives:
SCORE, with 400 locations and 13,000 members throughout the country, offers individual counseling by
retired executives, providing you with access to years of international business experience.
Small Business Development Centers:
SBDCS, operating in cooperation with local colleges and universities, offer in-depth business counseling and training.
Export Legal Assistance Network:
Through ELAN, you can receive a free, one-time consultation from an attorney experienced in
international trade law.
The U.S. Department of Commerce:
Offers a wide range of information on export potential, international markets, trade leads and
contacts. The department also conducts trade missions and catalog exhibitions, and assists firms
participating abroad in trade shows. For more information about Commerce Department programs, consult
your telephone directory under "U.S. Government' or call (800)-USA-TRADE."
State and Local Agencies:
Your state and/or local government may offer export assistance.
Chambers of Commerce:
Some chambers actively promote exports and provide training programs, counseling, referrals, trade
missions and publications.
International Trade Associations:
Many of these associations and other private organizations offer a wide range of services. Most conduct
regular meetings with qualified speakers and provide networking opportunities with others involved in
international trade.
Export Management and Export Trading Companies:
These companies serve as export sales intermediaries and representatives for manufacturers. Services include locating foreign buyers, promoting products, making export sales, providing documentation and shipping products overseas.
Consulting Firms:
Trade consultants can provide information on domestic and foreign trade regulations and overseas markets, and can assess overseas commercial and political risk. They often specialize in product lines and/or geographical areas. Some small
law firms, accounting firms or specialized marketing firms also provide international-trade consulting services
*Last Modified: 4-30-97