SmallBusiness.com Guide to U.S. Exporting and Trade – SmallBusiness.com https://smallbusiness.com Small business information, insight and resources | SmallBusiness.com Sat, 19 Mar 2016 00:52:28 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.2 How U.S. Small Businesses Are Becoming a Growing Force in Global Trade https://smallbusiness.com/trade/small-business-global-trade/ Fri, 18 Mar 2016 17:38:16 +0000 http://smallbusiness.com/?p=19550 Here is something amazing about the role of small business in a part of the economy most people may have never considered. As explained in McKinsey’s Digital Globalization: The new era of global flows, the most rapidly growing segment of U.S. exporting companies are businesses with less that 50 employees.

Quote:

“… the share of exports by large multinational corporations dropped from 84 percent in 1977 to 50 percent in 2013. Companies with fewer than 500 employees accounted for 97.8 percent of all identified US exporters and 97.2 percent of all identified US importers in 2011. The number of US exporting entities with fewer than 50 employees, in particular, has grown more rapidly than firms with 50 to 500 employees.”

“But wait,” you may be thinking: “That doesn’t sound quite right.” That’s because the dominant narrative in the general media — especially during this election period — suggests that U.S. trade is something we have been been clobbered in and that we have shipped all the U.S. jobs overseas.

But the analysis by McKinsey suggests something else is happening, something counter to the prevailing narrative: In reality, small businesses worldwide are becoming “micro-multinationals” by using digital platforms such as eBay, Amazon, Facebook, and Alibaba to connect with customers and suppliers in other countries.

Global customers are increasingly buying things from companies not located in their home countries. And here’s the good news for U.S. small businesses: much of that purchasing is being made from small U.S. businesses.

GlobalDataFlow5

Here’s another surprise. The growth in small businesses trading internationally is also benefitting the self-employed, as they are beginning to be more and more globalized. This is echoed in data from the MBO partners State of Independence studies. These show over 2 million U.S. independent workers are exporters of services or goods.

For those who don’t want to wade through McKinsey’s 128 page report or even their 28 page summary, these two articles provide a good overview:

 

Photo: Think Stock
]]> U.S. Trade & Export Resources for Small Businesses https://smallbusiness.com/make-sell/four-trade-resources-for-small-business/ Wed, 20 Jan 2016 12:00:35 +0000 http://smallbusiness.com/?p=9355

According to the Small Business Administration, nearly 96% of the world’s consumers live outside of the United States, and two-thirds of the world’s purchasing power is in countries other than the U.S. In other words, if you’re not yet exporting, you’re potentially missing out on a lot. Even if you’re not sure where to start–or do know, but need some more guidance–fear not: Your business may be small by definition, but with the help of these resources, you can be well on the way to international success.

Export.gov

Export.gov pulls together resources from across the U.S. Government to assist American businesses in planning their international sales strategies and succeed in today’s global marketplace.

About Export.gov

Export Basics

Foods and Agricultural Products

Free Trade Agreements

International Finance

International Logistics

Licenses & Regulations

Trade Problems and Foreign Trade Barriers

 USTDA Consultant Database

The U.S. Trade and Development Agency (USTDA) maintains a database of companies and individuals who provide fee-based consulting services to small businesses interested in importing and exporting. Best of all: Almost all contracts with USTDA are reserved for small businesses, specifically small businesses dedicated to technical experts qualified in the areas of energy and power; project finance; health; manufacturing; mining; natural resources; telecommunications and information technology; transportation; and water and the environment.

Export Assistance Centers

There are assistance centers across the United States that were set up exclusively to help small businesses  with exporting topics. United States Exporting Assistance Centers (USEACs) are staffed by professionals from the SBA, the U.S. Department of Commerce, the U.S. Export-Import Bank and other public and private organizations. USEACs can help you understand the global marketplace and get you organized to join in and succeed. Some USEACs also have SBA representatives who are available to help you with your SBA export financing needs.

Export Business Planner

The SBA Export Business Planner (PDF) is a downloadable tool that provides you with an introduction to exporting and helps you determine your export readiness. It then walks you through training and counseling information; marketing plan and financial materials; transportation and documentation details and more. The Planner also provides practical worksheets, templates and forms, in addition to a glossary of industry terms and even more helpful resources.

(Photo: ThinkStock.com)

]]> Eight Myths About U.S. Small Business Exporting https://smallbusiness.com/selling/small-business-exporting-facts/ Mon, 01 Jun 2015 13:28:52 +0000 http://smallbusiness.com/?p=14806 Small businesses across the U.S. have discovered that exporting products and services provides an opportunity they had not considered before. In the coming weeks, we will be exploring some of those opportunities and how to access them. A good place to start is dispelling some of the myths about small business and exporting that many small businesses may have. From the SBA, here are a few of the common misperceptions about small business and exporting:

Myth #1: Exporting is only for large companies.

Fact: Small firms account for 97 percent of all exporters.

Myth #2: Only tangible products, not services, can be exported.

Fact: Service exports are a fast-growing and profitable endeavor. In fact, U.S. service exports more than doubled between 1990 and 2000, increasing from $148 billion to $299 billion. By 2010, U.S. service exports reached $543 billion annually.

Myth #3: It’s difficult to get financing for exporting.

Fact: The U.S. government offers many opportunities for business financing and loans. (Among several other exporting resources, the SBA has specialists in assisting small businesses to secure financing.)

Myth #4: Small businesses don’t need to export when the domestic market for their product is strong.

Fact: Your overseas-based competition is almost certainly looking at the U.S. market also. Meeting your competition in their market will lead to a global competitive advantage for you.

Myth #5: A small business owner needs to be fluent in a foreign language to export.

Fact: The U.S. Department of Commerce’s Foreign and Commercial Service can provide translators for small businesses. In addition, many small businesses have found that English is spoken in many countries around the world.

Myth #6: Only experienced exporters should accept payment in foreign currencies.

Fact: Only quoting in U.S. dollars makes U.S. exporters less competitive. There are many tools, strategies and government programs to help you, as a new exporter, manage foreign risk.

Myth #7: Licensing requirements for exporting are not worth the effort.

Fact: Most products do not need an export license. Exporters simply write “NLR” for “no license required” on the Shipper’s Export Declaration. (An export license is needed only when exporting certain restricted commodities, like high-tech goods or defense-related items, or when shipping to a country currently under a U.S. trade embargo or other trade restrictions.)

Myth #8: Companies interested in exporting have to “go it alone” to learn how.

Fact: There are a vast array of services available, from financing to training to one-on-one counseling.

Photo: ThinkStock

(via: SBA.gov, page 11)

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