Why You Should Export
|As global markets continue to grow, smart business strategy includes defining and selecting international business opportunities. Read why in the January edition of Kansas City Small Business magazine.
Why Consider Exporting?
- Nearly 95 percent of the world's consumers live outside of the United States. So if a U.S. business is only selling domestically, it's reaching just a small share of potential customers.
- Exporting enables companies to diversify their portfolios and to weather changes in the domestic economy.
- Exporting helps small companies grow and become more competitive in all their markets.
- Free trade agreements have opened up markets in Australia, Chile, Singapore, Jordan, Israel, Canada, Mexico and Central America, creating more opportunities for U.S. businesses.
The Economic Impact of Exporting
- About one of every five factory jobs - or 20 percent of all jobs in America's manufacturing sector - depend on exports. Workers in jobs supported by merchandise exports typically receive wages higher than the national average.
- In the past 25-plus years, U.S. exports increased five-fold from $224 billion to more than $1.3 trillion in 2008.
- Small businesses create 70 percent of the new jobs in America.
The Number of Exporters is Growing
- Because nearly two-thirds of small- and medium-sized exporters only sell to one foreign market, many of these firms could boost exports by expanding the number of countries they sell to.
- More than two-thirds of exporters have fewer than 20 employees.
- Small- and medium-sized firms account for the vast majority of growth in new exporters.
- Small- and medium-sized companies account for almost 97 percent of U.S. exporters, but still represent only about 30 percent of the total export value of U.S. goods.