NON OIL EXPORT WORKSHOP PARTICIPANTS` COMMENTS - 3 VIDEO CLIPS
|
Post by Trade Coach on Apr 8, 2017 22:04:35 GMT 1
Exporting isn’t just for the big multinationals anymore. The expansion of e-commerce and evolving global value chains are opening up new export opportunities for small and midsize enterprises (SMEs), according to a 2016 World Trade Organization report.
But SME participation in trade isn’t as strong as it could be. In developed countries, on average, firms with fewer than 250 employees account for 34% of exports, according to the WTO’s 2016 World Trade Report. The bulk of this trade comes in the form of services, such as accounting, the WTO reported.
One of the reasons small and midsize manufacturers may hesitate to enter the export market is the inherent risk that new markets bring.
“A lot of middle- and small-sized companies (in the U.S.) they just avoid international,” says Mark Robinson, senior vice president of global operations, UPS Capital. “They just say, ‘There’s a lot for me to deal with here; I’m just going to keep selling in the U.S.A.’ And in the U.S. market, it’s easy to file lawsuits and collect if you need to collect. Because the U.S. market is so big, many small- and middle-size companies wait a long time before they stick their toe in the water on the international side.”
The result: Many SMEs miss a significant opportunity for major growth. During the initial stages, smaller firms typically have a lower chance of surviving as exporters, but they grow more quickly than large firms if they do survive, according to the WTO report.
The benefits of exporting are evident. So how can SMEs enter the export market with more confidence? Trade experts suggest SMEs protect themselves with various insurance policies and export strategies.
Source: www.industryweek.com/trade/why-exporting-doesn-t-have-be-risky-business
|
|