Posted at 7:15 AM
Created on July 10, 2013
Why Consider Exporting?
Access. Today, improvements in trade finance, the Internet, and trade agreements have dramatically increased access to markets worldwide.
Demand. More than 70 percent of the world’s purchasing power is located outside of the United States. Your competitors are increasing their global market share, and you can too.
Profitability. Exporting can be profitable for businesses of all sizes. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms.
Competitive Advantage. The United States is known throughout the world for high quality, innovative goods and services, customer service, and sound business practices.
Risk Mitigation. Most companies that export have an easier time riding out fluctuations in the U.S. economy and are more likely to stay in business.
The Economic Impact of Exporting
U.S. exports of goods and services totaled $2.2 trillion in 2012. Exports are a growing and substantial part of the U.S. economy, accounting for 13.9 percent of our nation’s GDP.
In 2012, 9.8 million U.S. jobs were supported by U.S. manufactured exports.
According to a study published by the Institute for International Economics, U.S. companies that export not only grow faster, but are nearly 8.5 percent less likely to go out of business than non-exporting companies.
Minority-Owned Companies Have Vast Export Potential
Minority businesses have a competitive advantage in global trade based on their cultural ties, language skills and nimbleness. The 2007 Survey of Business Owners reveals that among firms with export sales representing 20 percent or more of their overall receipts, minority-owned businesses are twice as likely to export compared to non-minority firms.
In addition, minority firms are more than three times as likely to have businesses generating 100 percent of all their sales in exports compared to non-minority respondent firms. This finding is quite substantial because it can support the Administration’s goal of doubling the nation’s exportsby the end of 2014. Minority businesses can play an important role in meeting that goal through exports.
The Minority Business Development Agency is committed to working with U.S. companies to help American-made goods and services succeed in the global market.