But there are many more reasons why a small business should start. The number of small-and medium-sized exporters more than doubled between 1992 and 2007, and nearly three-quarters of exporters have fewer than 20 employees. 5. Take advantage of relatively lower costs of transportation. , Erwin Z While globalization has created opportunities for small businesses to sell their goods and services in new markets, not enough small businesses … , Harri Daniel , Comments Off on Benefits Of Exporting For Small Businesses, Benefits of Exporting For Small Businesses. Regardless of the risks, the benefits of exporting for small business are many as illustrated further below. 13. Posted in Business. 8. Please help us improve. Located in 109 cities across the United States and U.S. Embassies and Consulates in more than 75 countries, the U.S. Commercial Service's global network of trade professionals can help open doors around the world. Besides the aforementioned advantages, exporting has certain drawbacks also. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms. 2. The profitability of small firms increases by 26% when they are given the opportunity to export … That's where the U.S. Commercial Service comes in. First, companies say they do not know how to get started. A key benefit associated with exporting for small business is the likely increase of profits and sale. With an expanded market, sales of products will definitely increase if … Exporting benefits small and medium-sized enterprises (SMEs) and their owners by increasing profits. This post was originally published in April 2012 and has been updated to include current information, links and formatting. 2. , Comment Closed, March 20, 2016 Because of this, it is going to have a better probability for successful long term development. Government statistics indicate that only about one percent of all U.S. companies are involved in exporting. Exporting provides small business an expanded market and this increases the sale of items. 4. 7. Increase the scope of your business making you more competitive domestically. , Comment Closed, February 15, 2016 , Erwin Z Exporting is one way that small businesses can use to gain global market share. Reduce your total reliance on a single domestic market. This is brought by international trade and is largely influenced by both the success and quality of the company’s product. Small businesses do engage in exporting, in spite of what many people think. Benefits Of 9. For a small company or start-up business, expanding further afield and exporting goods worldwide can increase your demand which in turn helps you to re-invest in your business, secure jobs and grow your brand on a global scale. Right now is the perfect time for your small company to explore the benefits and merits of exporting. 4. 14. Small firms now account for most of the new exporters in America. Many smaller businesses are so busy running their day-to-day operations that they don't consider their export potential. , Erwin Z, 1 Comment, March 5, 2016 Take advantage of the ongoing reduction in trade barriers thanks to recent trade agreements. Oftentimes, companies think exporting is too burdensome, or they are not aware of export and financing services offered by the U.S. government. 3. Despite the risks involved, which are actually part and parcel of any business, exporting brings a number of benefits to small businesses. As many U.S. firms seek new opportunities, they find conducting international business offers unique challenges. Take advantage of improvements in trade finance, the internet, and trade agreements that have dramatically increased access to worldwide markets. It's absolutely free! The U.S. Department of Commerce emphasizes that 97% of all U.S. exporters are small businesses. A recent study published by the Institute for International Economics concludes that U.S. companies that export not only grow faster, but are nearly 8.5% less likely to go out of business than non-exporting companies. Obviously, when an organization starts trading internationally, it joins the worldwide market. hbspt.cta._relativeUrls=true;hbspt.cta.load(361415, '845ddbca-e212-4bdc-8a9a-bee29b3adc9c', {}); 1. Benefits Of everything that matters, July 28, 2011 Such knowledge may be utilized for the development of better products that can then be sold more efficiently. , Erwin Z, Comment Closed, March 1, 2016 But while 98 percent of exporters in the U.S. are small- or medium-sized businesses, that still only accounts for about 1 percent of domestic companies.In order to pump up the number of small businesses involved in exporting… Global market share Despite the risks involved, which are actually part and parcel of any business, exporting brings a number of benefits to small businesses. Exporting provides small business an expanded market and this increases the sale of items. Over time, the profits will also increase as the small businesses will now delight in an … By entering SBA and Visa's "2013 Export Video Contest," you'll get the chance to educate other small businesses about the benefits of exporting and the government programs that can help -- and you … This reduction is caused by the increase of raw materials and other supplies required for a larger target market. Take advantage of current favorable exchange rates that make U.S. goods and services even more of a bargain to foreign buyers. In reality, such small businesses have lots to gain from exporting. hbspt.cta._relativeUrls=true;hbspt.cta.load(361415, 'f98f2df1-3a01-4129-8e6c-a0f3740a5ace', {}); If you are still leery about exporting, there is good news. The next major benefit of exporting for any small business is the reduced expense of manufacturing. Small businesses might need to incur extra administrative costs for effective exporting. Whether you're looking to make your first export sale or expand to additional international markets, the U.S. Commercial Service offers the trade counseling, market intelligence, business matchmaking, and commercial diplomacy you need to connect with lucrative business opportunities. 6. , Erwin Z, Comment Closed, March 10, 2016 Take advantage of relatively lower costs of transportation. Furthermore, exporting can help small businesses diversify their risks such that they do not suffer huge loses because of either economic downfall or market changes. Gain new knowledge Despite the risks involved, which are actually part and parcel of any business, exporting brings a number of benefits to small businesses. Reduces manufacturing expenses , Erwin Z, Comment Closed. The Small Business Administration (SBA) provides counseling, training and financing support to small businesses to allow them to take advantage of export opportunities. Reduce available excess inventory or excess production capacity and staffing due to the struggling domestic economy. By trading internationally, even small businesses are able to grow, creating more job opportunities and economic growth. If exporting is beneficial to the growth and profit of a company, then why don't more small companies actually export?