SMEs - NEI – SBA – STEP: Lots of acronyms, but how do they help US exporters?

Around the world, small and medium enterprises (SMEs) are considered by their respective economies to be the engines of growth, innovation and jobs.  This is especially true in the United States.  It has been just over two years since the Obama Administration announced the National Export Initiative (NEI) to increase American jobs by 1.) increasing the number of companies exporting and 2.) expanding the number of markets that US exporters sell their products and services.  While reading about the progress of the NEI, four interesting facts about US exporters caught my eye: 

1. In the United States, SMEs account for almost 97% of companies that export, yet only represent about 30% of the total export value of US goods.
2. More than two-thirds of US exporters have fewer than 20 employees.  
3. Potential new customers for US companies are likely located overseas as 95% of the world's consumers live outside of the United States.
4. The majority of US exporters – 58% -- ship their products to only one market and mainly to our northern neighbor, Canada.

If US SMEs are to be engaged in the world market and sell to overseas customers, most need some kind of assistance in the form of market leads and information, access to new customers, financing, and removal of trade barriers, to name a few. As part of the NEI, the Small Business Administration (SBA) has established State Trade and Export Promotion (STEP) grants for individual states to help expand both the number of small business exporters and the value of exports for those small businesses that already export.  Of the $90 million set aside for the STEP program, $30 million has already been allocated to states and their exporters.  Another $30 million is up for grabs by states and should be allocated in September 2012. Some states have allocated their funds towards workshops and educating new exporters.  However, several states allow for industry to apply directly for funds to support export planning and implementation initiatives such as trade show participation, Gold Key missions, and translation of marketing materials. 
To learn how your company can apply for STEP grant funds to support export activities, TradeMoves recommends you check out the Small Business Administration’s STEP grant fact sheet and contact your state's STEP grant administrator via the map of grants by state.  It may be free money for your business to help expand sales overseas. 
 
​Shawn Marie Jarosz
​SJarosz@TradeMoves.net
240.242.8108