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Developing markets for your business |
By: Gregory Walters, Director of Small Business Affairs, Office of the U.S. Trade Representative |
11/09/2004 |
On
November 4,
2004,
the U.S. Small Business Administration’s Office of Advocacy released a study
titled, “Costs of Developing a Foreign Market for a Small Business: The Market & Non-Market Barriers to
Exporting by Small Firms.” This
study investigated the issues that impair or impede
U.S. small businesses from entering
into foreign markets. The complete
study can be found at http://www.sba.gov/advo/research/rs241tot.pdf.
The
study concluded that most small firms enter the international marketplace as a
reactionary response to potential customers. As a result, out of pocket costs of
export didn’t inhibit exports, but rather psychological, personal and
opportunity costs were greater barriers.
In other words, most small businesses saw exporting as taking away from
there domestic sales rather than adding to them. But for those companies who did wish to
take advantage of the international market place, the large fixed costs of
starting exporting were so high that they served as an impediment to
exporting.
By
aggressively opening markets abroad, the Bush Administration is committed to
assisting U.S. small businesses proactively
pursue export opportunities.
Through the U.S. Department of Commerce, the federal government offers a
first step to exporting at www.export.gov. Additionally, by calling
1-800-USA-TRADE, any U.S. company can talk to a live
federal international trade specialist.
The U.S. Small Business Administration offers counseling through its
representatives in the U.S. Export Assistance Centers throughout the
country. Information for their
locations can be found at www.sba.gov/oit. For small businesses that are looking to
expand their international strategies, the Department of Commerce Foreign
Commercial service offers several programs through www.buyusa.com.
U.S. small businesses looking for
assistance in financing international transactions can look for resources from
the Small Business Administration and the Export-Import Bank of the
United
States, www.exim.gov. If your small business is interested in
transaction insurance or setting up overseas facilities, the Overseas Private
Investment Corporation can assist through its small business programs, www.opic.gov.
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