Demystifying Global Trade: Why Export?

As a business owner, finding the best opportunities at the right time is critical. Staying profitable, growth, and building a sustainable business are a few of the important elements of owning a business. Exporting complements all those activities and if you aren’t already exporting, here are a few findings that might encourage you consider it. Follow along as we demystify global trade!

1. Small businesses that export outperform those that do not: New data from a 2023 SBA business survey found that the number of exporting small businesses was 1.3 million—5x greater than previous Federal Government estimates.

   In Oklahoma, SME’s account for 84% of exporters!
   
   

2. Businesses that export create more jobs, pay higher wages, and have faster sales growth: According to the International Trade Administration, thousands of U.S. companies boost their bottom lines and competitiveness by meeting global demand for innovative, quality, made-in-USA products and services.

3. 95% of the world’s consumers are located outside of the U.S.: There is a world of opportunity (literally) if you sell your product or service overseas! You have the opportunity to increase your demand and expand your customer base.

   
   

4. Diversify and mitigate your risk through exports: We’ve all heard the phrase, “Never put all of your eggs in one basket!” Well, this is true for business too. Everyone remembers COVID. Some countries’ economies bounced back quicker than others. Companies with a portion of their sales as exports were helped by those revenues when the home market was sluggish. 

     

5. SBA Export Financing programs and EXIM  Export Credit Insurance can help secure  your cashflow and ensure you get paid. The U.S. government wants more businesses to export. They created the SBA export financing programs and the Export-Import Bank to help businesses finance exports, improve their cash flow, and ensure against nonpayment!

   
   

If you’re looking to expand your business, exporting may be a good option. There are a few factors to consider, such as whether your product or service will sell in another country. However, the key takeaway is that exporting can have many positive effects on a business’s performance. If you’re not sure how to get started or want to grow your existing exports, contact us today or register for advising below!

 

Sources:

1. https://www.sba.gov/sites/default/files/2023-02/SBA%20Total%20Addressable%20Market%20Study%20FINAL-508%20%281%29.pdf
2. https://www.trade.gov/why-export

Register for Advising: https://business.oksbdc.org/reg.aspx?mode=counsel&center=64090&subloc=0

 

As part of OSU’s land grant mission, the Wes Watkins Center for International Trade Development (CITD) in Stillwater, OK serves as the extension function for OSU Global. At the CITD we focus on two areas: research and business advising. We conduct international trade business advising under the Small Business Development Center (SBDC) model, providing high-quality, confidential advising, typically at no cost to businesses in Oklahoma. We serve businesses across all industries, at all stages in their export journey, from those who are considering, new, or experienced exporters.

Need help with international trade?

Click the button below to take advantage of the ITC services.  ITC advisors will schedule an appointment to discuss how your small business can start the export process or expand to new global markets.

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