TRADEMOVES LLC
  • Home
  • About Us
    • Meet Our Team
    • TradeMoves Alumni
    • Client Testimonials
  • Customized Solutions
    • Case Studies
  • TradeMoves' Insights
    • TradeMoves' Blog
  • Careers

New Insights on Challenges of Exporting for U.S. SMEs

5/16/2023

 
May is World Trade Month AND Small Business Month!

U.S. small and medium sized businesses (SMEs) generate 44 percent of U.S. economic activity [1] and are responsible for 14 to 22 percent of U.S. exports [2]. Empowering SMEs to grow exports has been an important point of emphasis in the Biden Administration. Secretary of Commerce Gina Raimondo cites the Administration’s goal to double the number of SME exporters assisted per year to 60,000 [3]. Increased support from U.S. export-focused institutions including Export-Import (EXIM) Bank, the Small Business Administration (SBA), and the U.S. Department of Commerce will help U.S. exporters better compete in global markets.​

According to Census Bureau data, of the approximately 1.8 to 2.3 million U.S. SMEs that could export their goods or services, approximately 240,000 exported in 2020 [4]. On 29 March, Virginia’s Small Business Development Center highlighted this issue at the NASBITE conference with a panel of industry experts moderated by Doug Palmer of Politico:  ​
Picture
TradeMoves' founder, Shawn Jarosz, with fellow panelists at the NASBITE conference in March 2023.
  • Bill Cummins, State Director of Alabama SBDC Network and export finance consultant at the University of Alabama,
  • Dan Crocker, Director of the Dean Rusk International Studies Program at Davidson College, and
  • Shawn Marie Jarosz, TradeMoves’ founder and Chief Trade Strategist.

​The panel discussed two recently published surveys on small business engagement in exporting conducted by EXIM, the National Small Business Association and SBA; challenges and opportunities for SMEs; innovative ideas to enhance export assistance; and how best to promote U.S. SME participation in global markets.
Challenges cited in the surveys include the limited scope of exporting businesses eligible for export financing, minimal access to financing for those exporters who do qualify, lack of digital marketing used to spread helpful information and expand relationships, and the biggest barrier -- general lack of knowledge on export mechanics and simply where to start. More training programs, export education resources, and better awareness and marketing for training and resources currently available to SMEs are needed to increase the number of U.S. SMEs exporting. At the market level, panelists and participants noted that exporters continue to raise concerns over reduced number of Commercial Service officers available to assist U.S. exporters, and that the proliferation of standards and requirements that are often disparate and not harmonized are making cross-border trade a daunting endeavor for even experienced exporters. The panel also discussed the shift in U.S. trade policy priorities over the past several years with national security as a driver on economic and trade policy as well the view of China as an increasing economic threat.  

The National Association of District Export Councils has called for modernizing and increasing trade-specialized staff at the U.S. and Foreign Commercial Services, as well as promoting public-private partnerships focused on export strategy [5]. New and ongoing support for SMEs’ export initiatives and promotion of government-provided resources is critical for the United States as it strives to strengthen U.S. domestic industry and U.S. presence in emerging markets around the world. SMEs that export grow faster, add more jobs, and pay higher wages [6]. These qualities encourage the empowerment of American workers, as well as strengthen the United States’ position in global markets.

To learn more, please read “U.S. exporters plead for more help” from Doug Palmer at Politico.  We appreciate the increased awareness Politico raises on challenges of exporting for SMEs in the United States.

Isabella Gabriele
[email protected]

[1] “How Small Business Drive the American Economy.” 25 March 2022. Forbes.
[2] “Project to Address the Total Addressable Market for Small Business Exporters.” SBA.
[3] Ibid.
[4] Ibid.
[5] “The U.S. & Foreign Commercial Service: A Necessary Tool to Increase U.S. Exports and Support the Biden-Harris ‘Build Back Better’ Strategy.” NADEC.
[6] “Small Business.” United States Trade Representative.

Comments are closed.
    The TradeMoves blog allows our team to share and connect with our followers. We hope to continue sharing our insight and providing helpful tips. 
    View my profile on LinkedIn

    Categories

    Import-Export Advice

    Trade Policy Updates

    SME Exporters in the Know

    Women in Trade Interviews​

    ​
    TradeMoves' Updates

    ​All

Home

About Us

Customized Solutions

Meet Our Team
TradeMoves Alumni
Client Testimonials
Careers

Global Intelligence & Insights
Smart Trade Tools
Sourcing & Supply Chain Strategies
Case Studies

TradeMoves' Insights

COVID-19 Resources
TradeMoves' Blog

Contact Us

Please contact us at:
[email protected]

Picture
Picture
Picture
Picture
© COPYRIGHT 2016. ALL RIGHTS RESERVED.
  • Home
  • About Us
    • Meet Our Team
    • TradeMoves Alumni
    • Client Testimonials
  • Customized Solutions
    • Case Studies
  • TradeMoves' Insights
    • TradeMoves' Blog
  • Careers