According to a recent survey taken by the Hong Kong Shanghai Banking Corp., 40 percent of small businesses worldwide want to be trading internationally by 2013. Firms both large and small are daunted by the linguistic and logistical challenges involved in international trade, so the prospect of going global has remained a pipe dream for many. The United States lags behind other developed countries in exports – estimates suggest that less than 1 percent of all 30 million U.S. companies export goods overseas. Small businesses make up more than 70 percent of U.S. exporters, and their goods represent approximately 14 percent of the value of all goods exported. In the international arena, small businesses have some advantages that the big guys don’t have – including the flexibility and willingness to embrace new technology to reach and service customers.
Is global business right for you? The decision to launch a global marketing effort needs careful thought. It must be compatible with your overall business plan and your growth strategy. Here are some basic issues and questions to consider.
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Retail businesses might want to take a look at Export Now, a new e-commerce venture designed specifically to help U.S. businesses access consumer markets in China. Founded by a former U.S. ambassador and under secretary of Commerce for International Trade, this e-commerce solution for small businesses distributes subscribers’ goods via its online store and Taobao.com, China’s largest business-to-consumer platform.
Closer to home, the administration is supporting export efforts. Thanks to President Obama’s National Export Initiative, the International Trade Administration at the Commerce Department has more funding for export programs. The president also has called on the Export-Import Bank of the United States to increase available financing for small businesses by 50 percent. In addition to helping business owners find capital, the Small Business Administration provides training and expert counseling to small firms. Public sector agencies have also ramped up efforts to simplify the requirements business owners must meet and will help businesses identify overseas markets and customers.