Export Market – Lucrative Business Development Strategy

International export markets represent a bright spark for U.S. economy

Reports from the National Export Initiative highlight continued growth of exports from the U.S. resulting in positive economic impact and sector job creation.

Thumbs up to international trade. Export market contributes to economic development and recovery.

Exports from the U.S. have increased for small-to-medium sized businesses with the help of training, support, and access to capital to fund business infrastructure (or re-tooling), job creation, shipping and delivery, and the ability to compete on a global scale.

The export.gov site assembles a multitude of resources available from a wide range of federal agencies. The goal is to provide a single source of assistance to firms attempting to evolve international sales strategies.

A comprehensive report to the President by the Export Promotion Cabinet on the National Export Initiative (NEI) highlighted the efforts multiple federal agencies are already making to support U.S. exports and emphasizes the next steps that must be taken to meet the administration’s five-year goal of doubling U.S. exports and supporting millions of jobs.

Export Markets Play Role in Economic Recovery

While the domestic economy in the United States (U.S.) has experienced downturns over an extended period, the export market continues to grow rapidly. In September President Obama hailed the export trade as one of the most significant “bright spots’ of the U.S. economy. Since the President took office in 2009, the export market has grown from $1.84 trillion to $2.2 trillion and the President continues to push to double U.S. export figures by 2015.

A number of factors have played a significant role in the rising importance of export as part of the overall economic makeup of the U.S., including lower production costs at domestic facilities, increasing demand for US products across the globe, especially in markets such as China.

The focus on the export market is playing a key role in the economic recovery, supporting U.S. jobs and small to medium businesses. As part of the federal government support there are a range of initiatives to help U.S. firms develop new export markets and grow their business. These newest supportive efforts foster economic development. In the form of training, development and financial assistance, they are particularly designed for those businesses that find it hardest to break into the export market, generally small-to-medium sized firms.

Training, Support and Development

So what help is available to facilitate a move into overseas trade?

The United States Commercial Service (USCS), a section of the U.S. Department of Commerce, is one such organization offering training and support to SMB firms who want to develop business overseas. USCS provides assistance in high quality market research, help with exhibiting in overseas trade shows, counseling and advocacy support along with a range of training programs on basic exporting issues, including documentation and export control matters.

There is a widespread network of offices located across the U.S. and access is also available to staff located in U.S. embassies in more than 80 countries.

Another immediate, do-it-yourself resource is the U.S. Small Business Administration’s (SBA) Export Business Planner. It is a free, customizable tool for small business owners who are exploring exporting. Using the planner, you can work through the critical processes of export readiness and planning via a ready-made, easily accessible document that can be updated and referenced time and again as your export business grows. The quick video introduces the planner and its features.

One Stop Resource

A relatively new initiative is the export.gov. The export.gov site assembles a multitude of resources available from a wide range of federal agencies. The goal is to provide a single source of assistance to firms attempting to evolve their businesses to engage in international sales strategies.

Success in international trade, across the global marketplace can be a vital way in which even small firms can not only survive the recession but grow their business. The export.gov initiative offers readily available access to support, advice, trade leads and access to training, whatever the size of firm you run.

The Export-Import Bank

Of major interest to the smallest of operations is the Export-Import Bank of the United States (better known as the Ex-Im Bank). A government agency, the bank is responsible for supporting the export of goods and services originating in the U.S. The organization offers a range of loans, insurance and guarantee programs that are designed to grow the export sector of U.S. international trade and thereby support small business development and domestic job creation.

The Ex-Im Bank is particularly focused on supporting the smaller end of the small to medium sector and has a range of specific projects aimed at businesses run by different groups. This includes the women and minority-owned businesses initiative which provides guidance and support for these groups in achieving their export goals and qualifying for support from the Ex-Im Bank.

Another initiative is the Green Business effort which supports U.S.-based manufacturers of environmental goods, services, and green technologies such as solar or green energy — a rapidly growing sector with strong market potential in developing countries across the globe but particularly on the African continent.

The organization also offers a range of free seminars, advice and trainings needed by small businesses exporting environment-related products — including those around regulatory and compliance topics such as environment assessment reports.

In 1995, Ex-Im Bank became the first official Export Credit Agency (ECA) to adopt a set of Environmental and Social Due Diligence Procedures and Guidelines (ESPG).

Over the following years, Ex-Im has worked with stakeholders to ensure that the EPG is implemented in a way that balances the environmental stewardship that Congress sought with Ex-Im’s mission of fostering U.S. exports.

Export Growth

Small and medium businesses participate in export market and international trade.
Training includes retooling, environmental assessment, even shipping in containers overseas.
Image via Morgue File, public domain

The advantages of developing an export branch to your firm are numerous. Apart from gaining access to a far bigger market for your products, export markets can help firms to survive downturns in the domestic market, including seasonal drops in trade. Although this latter aspect can be more significant for some products and services, seasonal trends affect nearly all firms at some level.

Small firms, even those manufacturing simple products (like ISOstainless.com, for example) can find valuable overseas partners and markets opening up (literally) a whole new world of profitable connections. With all firms now operating in a global marketplace the opportunities for growth, business development and (importantly) survival in these difficult economic times that export can offer, can make all the difference to firms of any size.

While growth may seem the hardest business objective to achieve in the current global climate, the export market for U.S. firms offers real possibilities for expansion and developing new ways of working.

Additional Resources

• List of countries by exports via Wikipedia
• SBA’s Export Business Planner, downloadable tool.
• Outline of items typically included in an Environmental and Social Impact Assessment Reports for international projects from Ex-Im Bank

Your Thoughts?

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Sam Mulder is a freelance writer who specializes in business development and international markets.

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