Small Business: Exporting can help small businesses achieve growth

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Sam Jones is the regional administrator of the U.S. Small Business Administration.|ret||ret||tab|

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More than ever before, world trade is essential to the health of the American economy. As communications and transportation become less expensive, more small businesses are learning to export. Small businesses now account for 96.5 percent of all exporters, and account for 98 percent of the increase in exporting between 1992 and 1998. So someone is figuring out that it's not only patriotic to add a "Made in the USA" sticker and ship elsewhere, but that it's an intelligent and profitable thing to do.|ret||ret||tab|

Most small business owners know a lot about foreign competition, and we all know about imported goods since American consumers have long been buying products manufactured overseas. Americans consume goods from all over the world. And, it's easy for us to sell to people who speak our language or are close enough for us to understand their culture. But many American small business owners pull back from selling their goods or services in foreign countries when language and cultural barriers are more formidable.|ret||ret||tab|

For Americans, preparing to export to a country with an entirely different culture may seem like sailing in uncharted waters. And indeed it is a learning journey. But remember, if a company is doing well selling its products and services in the United States, research shows that the same basic strategies can usually be used successfully in an overseas market. |ret||ret||tab|

Every new foreign market entered has an entrepreneurial quality about its entrance. That said, it is no wonder small-business owners are prime candidates as exporters. It takes more hard work, more planning, new market research and attention to detail but the rewards can be great. Entering an overseas marketplace can increase company sales and profits, increase numbers of customers, allow the company new tax advantages, and make better use of company personnel.|ret||ret||tab|

All exporting demands a certain amount of change and risk. Sometimes there are changes in packaging, voltage or in metric conversion; and sometimes exporting requires a shift, change or an addition in personnel. But exporting is not mysterious or difficult if the fundamentals about the export process are understood and followed. And that's where the U.S. Small Business Administration can help.|ret||ret||tab|

SBA spearheads a program, through the U.S. Export Assistance Centers network called Export Trade Assistance Partnership, which focuses on small businesses ready to make the export commitment and gives them the assistance they need to develop export markets, acquire orders or contracts, and use export financing either exporting or in preparation for a trade mission overseas. |ret||ret||tab|

The SBA can also help with financing new or increased export business with three loan products for different export stages the International Trade loan; the Export Working Capital Program loan; and a new, more lender-friendly product called ExportExpress. |ret||ret||tab|

The International Trade loan is designed to improve the company at home by financing machinery and equipment; financing real estate; and/or to improve a competitive position which has been adversely affected by import competition. |ret||ret||tab|

The Export Working Capital Program loan can be used to get ready to export for the pre-export financing of labor and materials; financing the receivables generated from these sales; and/or standby letters of credit used as performance bonds or payment guarantees. |ret||ret||tab|

SBA Export Express can be used for participation in a foreign trade show; translation of product brochures or catalog; general lines of credit; service contracts from buyers located outside the United States; transaction-specific financing needs associated with completing actual export orders; and/or the purchase of real estate and equipment to be used in production of goods or services which will be exported. |ret||ret||tab|

So whatever new foreign market you hear playing your song, the time is now to answer the call and begin your research. Think exotic. A foreign excursion can lead to increased business and profits at home.|ret||ret||tab|

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