Small business potential going for Global

Small businesses and entrepreneurs represent a powerful force both in the traditional and the new global e-business marketplace evidenced the following data points:-

1. There are more than 230,000 small businesses exporting in the United States alone.
2. The number of small business exporters rose 250 percent from 1987 to 2001.
3. About one of every five U.S. factory jobs depends on exports.
4. Exports mean new customers and more than 95 percent of the worlds Consumers live outside the United States.
5. Small businesses with fewer than 500 employees export roughly U.S. $182 billion a year or 29 percent of all exports.

Despite these compelling numbers, small businesses have not yet fully realized their potential for global trade. Only about 10 percent of small businesses are involved in the global marketplace. Research indicates unique reasons why businesses have a difficult time going global. They lack knowledge, resources, technology, incentives, support, brand recognition, competitive pricing and, in some cases, guts. Although these arguments are tentative, they are indeed a reality and must be taken into account when addressing how small businesses and entrepreneurs can best realize their potential in the global marketplace.

The good news is, however, that even with inherent barriers, small businesses are well positioned to overcome obstacles and seize the global frontier before them.

Here’s why:-

1. Export data analysis shows that 97 percent of U.S. companies that export Merchandise is small businesses.
2. Web based small businesses are far more likely to communicate and attempt to do business with people anywhere in the world versus those that do not have an online presence.
3. Entrepreneurs start to go global soon after start up.
4. Nearly 55 percent of business owners take their first active step toward exporting within two years.
5. The size of a company does not hinder exporting initiatives because more than two thirds of U.S. exporters have fewer than 20 employees.
6. Preparation time for entering a first foreign market is minimal, reflecting the opportunistic nature of many first time exporters.
7. Small businesses going global play an instrumental role in economic prosperity.
8. Studies show that exporting firms regularly outperform those that stay at home.
9. Most firms indicate that their product or service lends itself to international markets or customers.
10. Small businesses not only can compete on a more level playing field, but also can enter international markets with less financial risk.