As the world continues to become more globalized, the opportunities for small business owners are extraordinary. Exporting for the small to medium enterprise (SME) is not only the trend and undisputed reality of globalization, but has become necessary for ensuring survival and success. Although other options exist for reaching foreign markets such as investing abroad and manufacturing while hopping over tariffs, exporting is by far the most attainable for the SME. Despite the resources necessary for export in terms of financial, managerial, and organizational, exporting is accessible both to the large firm and ever increasingly to the small alike (Majocchi, Bacchiocchi, & Mayrhofer, 2005). Although it is disputed whether the size of the firm will determine success for export, one thing is virtually undisputed that experience is a crucial variable influencing a firm’s ability to export. This is where GSCS can assist to get behind the power curve while training internal expertise. Research demonstrates that a positive relationship exists between export intensity and firm size by number of employees meaning the larger the size of the firm the more resources it has, it can (obviously) export with greater intensity. However, when comparing firm size by volume of sales, the relationship was negative. The numbers also suggest that firm age, meaning experience, is a major player (Majocchi, Bacchiocchi, & Mayrhofer, 2005). With these realities, the small firm should not shy away from exporting, but instead should realize the implications of acquiring the necessary resources. This research as well as the sheer number of small businesses that are already entering global markets compared to large firms indicates that it can be done and even done more often for the small firm and that it is not entirely impossible when compared to large firms.
According to the Small Business Administration
When small businesses look to export, they can increase sales and profit, reduce dependency on domestic markets, and stabilize seasonal fluctuations. After all:
Given the firm data of the benefits of exporting, small businesses should look to begin and start planning at an early stage.
Global Strategy Consulting Services is glad to assist with the initial steps of exporting, our FREE global scan will give your company a clear idea of 15-25 markets that your company could begin looking at. We use trade statistics, export data, and your product information to give you a printout of exports entering other markets with the same or similar products as yours for the last 5 years with a percentage of increase or decrease with the last two years. (Contact us for your FREE global scan!)
Our market analysis will go much deeper on specific countries and with a flat rate of $1000.00 this becomes a very cheap way to gain a lot of knowledge about your top market choices. We will also give you a free 1 hour consultation to assist in the steps necessary prior to the market analysis.
Our “Go Global” Cruise will give you powerful insights on exactly how to start your internationalization initiative with decisive action steps.
What are you waiting for, contact us and let’s get started today!
Delehanty, P. (2015, December 1). Small Business Key Players in International Trade. Retrieved from www.sba.gov: https://www.sba.gov/sites/default/files/advocacy/Issue-Brief-11-Small-Biz-Key-Players-International-Trade.pdf
Majocchi, A., Bacchiocchi, E., & Mayrhofer, U. (2005). Firm Size, Business Experience and Export Intensity in SMEs: A Logitudinal Approach to Complex Relationships. International Business Review, 719-738.
SBA. (n.d.). Explore Exporting. Retrieved Jan 12, 2017, from www.sba.gov: https://www.sba.gov/managing-business/exporting/explore-exporting
Kirk Galster, M.S, M.B.A. is an international business services professional. With his extensive experience and background in International Studies, Law, International Business, and Economics he is a great asset to any international management team.