The facts about..
OPPORTUNITIES IN EXPORTING << Return to Table of Contents
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.
SMALL BUSINESS AND EXPORTING
World trade is increasingly important to the strength of our economy
and to the growth of U.S. companies. Exporting creates jobs and provides
small firms with growth, new markets and additional profits. Every
billion earned in U.S. export dollars generates about 25,000 jobs.
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 businesses
can and 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.
THE ADVANTAGES OF EXPORTING
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-
 Increased
growth
Increased
profits
Additional
markets
Extended
product/service life cycles
Increased
numbers of customers
Tax
advantages
Added
product/service lines
Improved
competitiveness
Favorable
publicity and recognition.
EXPLORING NEW MARKETS
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:
Analyze
the capabilities of your small business;
Know
the export potential of your product/service;
Identify
foreign markets that are right for you;
Study
market-entry strategies and export procedures; and
Learn
how to process exports.
WHERE TO FIND ASSISTANCE
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
counseling
Workshops
and training conferences
Publications
Financial
assistance
SBA ASSISTANCE
EXPORT
WORKING CAPITAL PROGRAM:
The EWCP provides short-term, transaction-specific transaction-specific
financing. The SBA guarantees up to $750,000 or 75 percent of the
loan amount, whichever is less. Exporters may use this program
for pre-export financing of labor and materials, sales, and/or
standby letters of credit used as performance bonds or payment
guarantees to foreign buyers.
THE
INTERNATIONAL TRADE LOAN PROGRAM
US
EXPORT ASSISTANCE CENTERS
EXPORT
LEGAL ASSISTANCE NETWORK
SBATLAS
For more information call (800) 8-ASK-SBA
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