The U.S. is great launching pad
for startup companies, but experts say it is a mistake to only focus on the
domestic market. But most small businesses are reluctant to look overseas for a
number of reasons, including concerns such as financing exports, language barriers,
shipping costs, and cultural differences.
"If I'm a U.S. small
business, why would I want to target only 5% of the market and not also embrace
the rest?" asked David Ickert, former chair of the Small Business
Exporters Association (SBEA).
Out of the 6 million U.S. small
businesses that have employees, only 5% are currently exporting goods and
services, according to Dennis Chrisbaum, director of international trade
finance with the Small Business Administration.
That's just under 300,000 small
businesses that are taking advantage of other markets. A recent industry report
said the government hopes to help 50,000 more small businesses export by 2017.
Air Tractor, based in Olney,
Texas, makes aircrafts for agricultural aerial surveillance and field spraying,
and has been exporting for 15 years. The firm's decision to export has paid off
immensely over the years, with 50 percent of its total sales coming from
outside the U.S.
More importantly, the growth
allowed the small-town business to keep hiring at home, which is crucial
because it employs about 9% of the town's 3,000 residents.
A recent SBEA survey showed more
small business owners are open to overseas business. From 2010 to 2013, there
was a 20% uptick in the number of firms interested in finding overseas
customers for their products and services.
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