eTrade Readiness Index by EIU – My interview on catalyzing cross-border ecommerce

I was recently interviewed about the reforms needed for fueling cross-border eCommerce for the new “The G20 e-Trade Readiness Index“, and Economist Intelligence Unit report, commissioned by eBay Inc.

The report is based on a quantitative index ranking of countries on the degree to which they encourage—through policy, regulation and infrastructure—cross-border trade using the Internet. The index comprises more than 40 indicators across five thematic categories: investment climate, Internet environment, international trading environment, regulatory and legal framework, and the environment for e-payments. The categories within the index are weighted according to our assumptions of their relative importance in facilitating cross-border trade using the Internet, especially for small and
medium-sized enterprises (SMEs).

Read more here

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How Big Data Streamlines Globalization

At 3:30am one May morning in 2011 in California, Tony Prophet, senior vice president for operations at Hewlett-Packard, was awakened and told that an earthquake and tsunami had struck Japan, a vital supplier of parts and equipment for major industries like computers, electronics and automobiles. Soon after, Prophet had set up a virtual situation room, so managers in Japan, Taiwan and the United States could rescue HP’s global supply chain, which at $65 billion per year feeds its huge manufacturing engine churning out two personal computers a second, two printers a second and one data-center computer every 15 seconds. HP managed, but not everyone fared as well: General Motors truck plant in Louisiana temporarily shut for lack of Japanese-made parts, and Toyota and Sony suspended production on several plants. Korean shipbuilders, European cell phone companies, and U.S. solar panel makers too were hit.

Such Acts of God resulting in glitches and losses are often unpredictable. But even the predictable patterns in the global economy have long gone unpredicted. Companies, especially small ones, lack insight into consumer whims in China, price levels in Brazil, quality of suppliers in Malaysia, or demand trends in Europe They have driven in the fog, a risky endeavor. But now a crystal ball is within reach: Big Data.

By 2020, there will be 44 times more data in the world than there was in 2009. Big data is not only numbers on Excel files – it is continuous stream of information that can be leveraged to predict the future. And it can be used to make efficiently: in the Internet of Everything, Big Data flows from one smart machine to another.

Big Data can help fix supply chains before they break. Manufacturers that collect and connect street-level data on buying habits and social media chatter with their internal data on operations, manufacturing, financial, and logistics can mitigate the infamous “bullwhip effect”, in which changes in customer behaviors magnify across the global supply chain all the way to raw material purchases. Bullwhip effect has long left companies with obsolete inventories when demand unexpectedly falls, and lost sales when demand suddenly spikes. In a recent study of 4,689 public U.S. companies in 1974-2008, two-thirds had felt bullwhip effects, typically due to over optimistic sales forecasts. Each quarter, upstream orders exceeded downstream demand by $20 million. When the Eurozone crisis expanded, Chinese exporters to Europe got stuck with excess inventories, going out of business and sending workers back to their villages.

In the era of Friedman’s Flat World (yes, I am writing a book on globalization and think we need an updated one as even Facebook and Twitter never made it in his), companies always struggled to finding reliable, high-quality and low-cost suppliers from East Asia and Easter Europe. Now, platforms separate wheat from chaff.  For example, ImportGenius uses 100 million ocean freight records, previously sitting idle in government databanks, to help U.S. manufacturers and retail chains to see which suppliers are used by such stalwarts as JC Penney and Boeing. New York firm Panjiva holds detailed records on 10 million suppliers in 190 countries to help clients understand what their competitors are buying and which suppliers they’re using. In short, companies can now see not only their own supply chain, but everyone else’s, and make better choices.

Another Flat World challenge for companies was getting pricing right in foreign markets. Now, Big Data gives a bird’s eye view for companies to see competitors’ prices in their target markets in real-time – and adjust prices in real-time to drive demand. For example, a price-monitoring platform Dynamite Data crawls more than 1,300 merchants and 11 million buy pages around the world, generating real-time price data on countless of verticals such as cars in China and widescreen HD monitors in the United States. San Francisco startup Premise uses an army of part-time laborers to take daily pictures of the prices of thousands of food and other consumer products that are not online, but in open air markets and supermarkets in developing world, such as in India. Translated online, these data not only help companies price their products to the bottom of the pyramid; they alarm in real-time governments, still stuck on using backward-looking monthly consumer price indices, about impending inflationary hikes and food crises.

Big Data makes it easier also to find new markets. Most companies, even corporations, still focus on countries as the key units in their business and marketing decisions, even though there are huge variations within countries – compare the glitzy cities in Eastern China with ones in the Western provinces. According to McKinsey, by 2025, 600 cities will drive 65 percent of global economic growth. But now the lens can be even sharper, zooming into “micromarkets”, or regional pockets of growth that don’t correspond to cities or Zipcodes, but rather to areas like Easternmost part of Mexico-U.S. border or Northwest of South Africa. Big Data will rename future markets – and they won’t be called China, Brazil or France.

Big Data empowers small business: whereas before small businesses would need to invest in costly hardware and software, now they can use cloud computing, open-source software, and software as a service to access and leverage large-scale data. Small businesses that sell online can also impute data in Google Analytics API to establish relationships between their website traffic and real-world, on-the-ground sales and shipments.

For the first time, all parts of doing global business are visible and transparent to companies of any size: any company can access data on suppliers and their credibility and prices; competitors and their process; customers and their preferences; and potential new markets and product needs. This lowers the oldest and most elusive obstacles to globalization – companies’ “information costs” to figure out foreign demand patterns and prices, and “search costs” to find customers and partners.

Of course, even the greatest data does not sing on its own: its usefulness for business insight hinges on how it is analyzed. Already companies war over the rare world-class statisticians who know what Big Data can do, can identify relevant data and wade through the complexity, and, critically, understand the business in order to ask the right questions and answer questions in the right way. In the battle of infonomics, the gap will widen not between data haves and have nots, but between analyst haves and have nots.

Granted, for specific projects with clear questions, analytical horsepower can be rented: a 50-employee online car dealer Carvana used crowdsourcing firm Kaggle to offer $1,000-$5,000 prizes to attract a hundred data modelers to establish the likelihood that particular cars found at auctions would turn out to be lemons.

A thornier challenge is governments’ growing interest in curbing companies’ access to data and its transfer across borders. Cross-border data flows are a big deal: they are key for companies that manufacture and export to access digital support services – such as logistics, retail distribution, finance or professional services – and digital goods at competitive prices, and these services depend on secure and efficient access to data. The transatlantic data flow arena is already highly contested: Europeans, incensed by the Snowden scandal, have tightened consumer data privacy rules, which complicates U.S. companies’ customer service in Europe – right when companies are hoarding information on prospective customers as a key source of competitive advantage. As advocates of free data flows go head-to-head with proponents of data localization, law suits and angry government action follow.

Another fundamental problem for transporting data is that some emerging markets like Brazil, China, Indonesia, Nigeria, Malaysia, and Vietnam have or are planning laws to force companies place servers as a condition for market access. Usually used as a job-creation program for locals to man server hubs, this too complicates doing business: for example, for companies to establish an extra server center in Brazil just to meet the law could cost as much as $40 million. According to a recent analysis by European think-tank ECIPE, this is self-defeating: server localization laws could cost 0.2-1.7 percent of national GDPs. Equally bad, many companies have servers in one country, customers in another, and operate out of a third one.

Yet there is no clarity in international law on data protectionism, or on which country can control or stop the data traveling between these three points. Policymakers need to urgently focus on this issue – it is inherently international, and at its worst, it can balkanize the global digital economy before it starts.

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Why Is ExIm Bank Having Such Hard Time with Reauthorization?

The U.S. Export-Import Bank (ExIm Bank) is in the throes of its toughest experience yet.

Congress is heatedly debating whether to reauthorize the ExIm Bank’s charter, and if it doesn’t act by September 30th, the agency will no longer be able to extend new loan guarantees to U.S. exporters. The Bank and its supporters have said that a failure to reauthorize the 80-year-old institution will hurt exports and cause companies to cut jobs.

The many critics argue the bank picks winners and losers, is used by large corporations that could have access to affordable bank lending – in Washington, ExIm has long been talked about as “Boeing’s Bank”. Tea Party is of course overall fed up with federal programs and spearheads also ExIm opposition.

These battles are not new: the agency is notoriously politicized in Washington and repeatedly struggles to secure Congressional re-authorization. Yet never before has the fight been so bloody.

I think ExIm Bank should be allowed to keep going, for four reasons.

  • First, all other major economies have export credit agencies much like ExIm aimed at helping their companies get an edge in world trade. By now, ExIm’s annual support to U.S. firms pales before that of China, for example. Without the ExIm Bank, many U.S. companies are immediately placed at a disadvantage in international markets.
  • Second, ExIm has not lost any taxpayer monies: it is not exactly a federal agency that is draining the budget and expanding the deficit.
  • Third, ExIm helps U.S. SMEs export. In our view it does a worthy job in this area, but it also has a great deal to improve, to enhance customer service to accommodate today’s realities of doing global business – something we at TradeUp work every day to bridge.
  • Fourth, ExIm Bank’s financing to large companies helps small ones: as a large company like Boeing sells a plane overseas, many U.S. small businesses benefit as suppliers of parts and services to Boeing.

Let’s drill down one aspect of ExIm’s work, with SMEs in the U.S. in the past decade, and what some of the challenges are. Go here to my blog post at TradeUp.

 

 

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Why are companies that sell on e-commerce platforms so globalized?

My new blog at TradeUp blog: http://www.tradeupfund.com/blog/why-are-e-commerce-sellers-so-globalized

As one explores international trade data, a stunning fact emerges: only 1 percent of America’s 30 million companies export. The remaining 99 percent sell only in the U.S domestic market. The explanation simple: especially small and mid-size U.S. companies have been lulled by the vast domestic market: why go through the pain of reaching foreign customers if your Ohio company already sits in a market with a quarter of the world’s spending power and can “export” to New York, Illinois, and Texas? 

Yet the United States is not an exception: only a minority of companies in any one country export – only 6 percent of Mexican companies, 10 percent of French companies, and 25 percent of Swedish companies. This is because exporting is expensive. Researching markets, finding foreign customers and partners, localizing products and services to meet foreign tastes and standards, marketing and sales, international distribution and shipping, and managing regulatory paperwork all entail costs and test a small business CEO’s mental bandwidth. Exporting has traditionally been only for exceptional businesses able to shoulder its costs and stomach the risks.

Ecommerce is turning these facts on their head. In the United States and elsewhere, 97 percent of companies selling online on eBay and other platforms export. These “e-exporters” regularly reach an average of 19 foreign markets, a stark contrast to offline exporters that typically export to just 1-2 countries, usually Mexico and/or Canada. And unlike offline exporters that typically do not last in the export game, online exporters have staying power: of even the very smallest companies, 54 percent remain active exporters after five years. Of the larger ones, 71 percent do. These patterns are very similar around the world. In Chile, Latin America’s star trader, 100 percent of companies that sell on eBay also export, on average to 28 different markets. 

 
The reason for the stunning difference between online and offline exporters is that the Internet kills distance in international trade. Trade economists have long used as their workhorse the gravity model, where trade between countries is a function of their GDPs and distance: large countries that are close to each other trade much more than small countries that are distant. France and Germany have mammoth $210 billion in trade; Sweden and Peru have less than $500,000. Distance is a big drag on trade: every 1 percent increase in distance implies a 0.7 percent less trade. German trade with Brazil, which is almost the same economic size as France but 6,000 miles farther, is only 13 percent of Germany’s trade with France.

Yet when economists analyze online trade, the distance effect vanishes: it has no meaningful explanatory power. This does not mean that shipping costs do not rise with distance; they do. What it shows is how dramatically online platforms expand the buyer’s visibility of sellers far away: the seller’s products are clearly visible and easy to explore across oceans. Online platforms’ star ratings systems, customer reviews, and payment tools such as Paypal gives the buyer a sense of trust, the lubricant of trade that in the offline economy takes several transactions between buyer and seller to build. Now the buyer can ride on the views of his peers about the seller, rather than on more indirect information such as the seller’s country image. Imagine a Korean wine importer looking for Argentine wines: now she will be able to screen and compare wineries online and order cases without ever paying a visit to the other side of the Pacific, and base her purchasing decision on information about the exporter’s reputation, rather than on the messy country profile. 

These patterns also mean that trade in the digital economy is pulled more than pushed: sellers are found, and made into exporters, by foreign buyers, rather than sellers going out and finding buyers, as is the case in offline trade. Empirically, online exporters are often “passive exporters” – companies that post their goods online and are serendipitously discovered by foreign online shoppers. Though wallflowers, these companies are much more globalized than their offline exporter peers, yet incur none of the same costs of pushing products on customers – networking, attending trade missions, renting booths at foreign trade shows, and traveling overseas to wine and dine foreign prospects. Of course, many are waging on the battlegrounds of mobile marketing, geotargeting, and social media advertisement. 

Customer service too is dramatically more efficient for online companies: when customers have access to their own personal accounts online, they do not need to be calling companies at all. And no banks are needed to secure payments when everyone can pay on PayPal or Bitcoin. 

Ecommerce platforms are the modern day version of migrant networks, such as the Chinese Diaspora, that economists have long known boost international trade by providing buyers product information, accelerating buyers’ search of suppliers, and enforcing contracts. 

Cross-border ecommerce is on track to grow at 10-15 percent rates annually, double the rates of overall world trade, to make up some 10 percent of global trade by 2017. China is the big prize: according to the Boston Consulting Group, in 2015, China will have 700 million netizens, almost twice as many Internet users as the United States and Japan combined. The next prize are the other 4 billion to-be Internet users that are going to log on by 2025. Anything can be sold to anyone anywhere: garage sales will be global. 

Everyone gains. What is unfolding is the highest expression of the New Trade Theory that earned Paul Krugman a Nobel Prize in economics in 2008: gains from trade expand as countries sell an ever-greater variety of goods at a lower cost. This insight will be ring even truer in the ecommerce economy as cross-border ecommerce will satisfy preferences that consumers did not necessarily even know they had. 

Ecommerce also accelerates international development. For example, India’s recent opening to investment by foreign ecommerce companies including Amazon, Walmart, and eBay is bound to boost domestic consumption, empower small merchants across the country, and eliminate costly middlemen in the supply chains. 

Getting online now is a great globalization strategy for any aspiring or current exporters. We here at TradeUp are highly supportive of companies that set up their own e-stores and place products on ecommerce platforms from Amazon to Alibaba. Here are good guides for preparing your business for ecommerce by UPS and by the government: http://www.forbes.com/sites/ups/2013/07/16/how-to-build-an-export-friendly-e-commerce-site/ and http://export.gov/missouri/static/E-Commerce%20Guide_Latest_eg_us_mo_032053.pdf. 

We also believe that policymakers need to raise their game and remove obstacles to e-exporters, especially prevalent the developing world, such as curbs on Internet freedoms, high fees and tariffs on cross-border online sales, and complex customs regulations that complicate shipments of small parcels, the hallmark of the online economy. The wide digital divides between the larger emerging markets and many less advanced parts of Africa, South Asia, Latin America, and Eastern Europe too await bridging. But the online opportunity is real and can be exploited right now, while governments mull over rules.

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My Interview about TradeUp on About.com – Small is Big in the International Economy

From: http://importexport.about.com/od/Financing/fl/Does-Size-Matter-For-Global-Scale.htm

Founder and CEO of Nextrade Group LLC, Kati Suominen, has deep expertise in international trade (importing and exporting), economics and finance. In the interview below we discuss her latest venture, TradeUp LLC, why she started it, how companies can get on board and whether size matters for global scale.

Laurel Delaney:  What is TradeUp?

 Kati Suominen: TradeUp (tradeupfund.com) is a new equity crowdfunding platform for globalizing companies. Companies can raise $100,000 to $20 million in debt or equity through us. We enable globalizing companies to connect and transact with a range of accredited investors (angels, superangels, VCs, PE funds, family offices, strategic investors, lenders, etc.).

TradeUp exclusively serves globalizing companies—companies that already export or have international presence or that have a very clear and specific internationalization plan and/or orders from overseas. From research we know that globalizing companies are an excellent investment target—they are consistently shown to outperform the broader market. Yet globalizing companies also tend to have accentuated capital needs. We help bridge this gap by helping high-performing companies access capital.

TradeUp is not a fund—we do not invest in companies or allocate capital. Rather, we provide a platform for companies to gain visibility and access to investors in one single place. Companies are still their own salesmen and women. Think of us as eBay for financing: If eBay is a site for companies to promote their products and sell them to customers, TradeUp is a site for companies to promote their fundraising and sell securities or issue debt to investors.

We know that fundraising is a tough, full-time job for companies and going door to door for capital is time-consuming. We help companies access investors in one single place and accelerate their fundraising.

While we are not a broker, we do have broker deal services available for companies through North Capital Private Securities, a leading broker-dealer in the equity crowdfunding space.

LD:  What’s required for companies to work with TradeUp?

KS:  Companies working with us need to already have international sales or be planning to go global. They typically have at least $500,000 in revenue. For now, we work primarily with U.S. companies and with foreign companies expanding into the U.S. market. Typically, companies on our platform are already in business—some have been as long as 25 years—and have a great team and a proven product.

LD:  What does TradeUp do for companies, investors, lenders and service providers?

KS:  TradeUp helps globalizing companies expand their visibility and investor networks and accelerate the path to funding. We are completely non-exclusive—companies can on board our site, yet continue raising funds through all other means as well.

For investors and lenders, TradeUp aggregates proven, prescreened and outperforming companies with mitigated downside risk and clear path to liquidity.

For banks, we offer an efficient way to access new clients and secure complementary capital to service existing globalizing clients (e.g., via TradeUp, access sub-debt to complement senior debt) or service future clients (e.g., refer a small business to TradeUp today that will be your client tomorrow).

In addition, TradeUp also enables service providers of all kind—government trade agencies, export consultants, trade lawyers, shippers, etc.—to build a profile on our site and cater their services to globalizing companies.

LD:  Why did you start TradeUp?

KS:  We started TradeUp with a very specific purpose: help globalizing companies access capital so they can reach their full potential in international markets. We are passionate about this mission: we get to help businesses expand, create jobs, and contribute to economic growth and recovery. We also have a clear business motives to start TradeUp, also discussed in our new White Papers and blog.

The first is the growth in the market. As the global economy rebounds, record numbers of small and mid-size companies around the world are seeking growth through exports. There is enormous latent capacity, just in the United States: so far only 300,000 of America’s 30 million small and medium-sized enterprises (SMEs) export.

The second reason for us to start TradeUp is the consistently impressive performance of globalizing companies vis-à-vis the broader market. Leading academic research across multiple rigorous studies on practically every continent has found that exporters outperform firms that do not engage in international trade.

Third, these outperforming companies face a major financing gap. Even though globalizing companies outperform, they also see obtaining financing as the main hurdle to doing trade. For example, in a 2010 U.S. International Trade Commission survey of more than 2,350 companies, U.S. small-business manufacturers rated access to financing as the No. 1 hurdle to trade, out of 19 hurdles, while businesses in service sectors rated access to capital as the third hurdle to trade, well above such challenges as high tariffs, locating foreign sales prospects, identifying foreign partners and establishing affiliates in foreign markets.

Similar patterns play out everywhere in the world: Capital is the No. 1 constraint for companies to grow internationally.

At TradeUp, our purpose is to bridge the financing gap facing globalizing companies by leveraging the power of equity crowdfunding. We simply put two and two together. Everyone wins. Companies can access critical gap capital to export and expand in international markets; savvy lenders and investors around the world access prescreened assets with superior growth prospects and pent-up demand for capital; and economies gain through export-led economic recovery, growth and competitiveness.

LD:  Any other thoughts or ideas you’d like to share?

Today anyone can gain from trade, and not only as a consumer, but also as an exporter, mini-multinational producer and global designer. Technologies from digitization to ecommerce and 3D printing are radically lowering the costs of doing international business. Now for the first time, small size can be synonymous with global scale. In fact, no longer do companies need scale to trade; they need trade to scale. Small businesses have another advantage: They tend to have agility, speed and creativity, the success drivers in 21st century global marketplace of rapidly changing consumer fads, niche markets and out-of the-woods competitors. We believe small is big in the global digital economy. At the same time, companies still need capital for going global—and that’s where TradeUp can help.

For more information on Kati, visit http://www.tradeupfund.com/our-team.html. For more information on TradeUp visit:  http://www.tradeupfund.com.

(Full disclosure: I serve as a partner and on Kati’s board of directors at TradeUp.)

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Emerging U.S. Export Engine: Trends in Small Business Exports

The Census Bureau has released new data on the profile of U.S. exporters. Business data has its lags, and these latest data are preliminary estimates for 2012. What they reveal is the critical importance of small and mid-size enterprises (SMEs), companies with fewer than 500 employees, in U.S. exports. SMEs make up 98 percent of U.S. exporters and record 35 percent of U.S. exports. Through my companies TradeUp and Nextrade Group, I wanted to offer a distilled review of these trends (below); for more insight, read our updated TradeUp White Paper.

SMEs: 98% of U.S. exporters and record 35% of U.S. exports

SMEs are the backbone of the U.S. economy, and make up 98 percent of the 304,867 U.S. exporters (figure 1). Just like in other economies, overall U.S. trade is still driven by large companies and multinationals, but SMEs have in the past few years gained ground and now make up over a third of U.S. exports (figure 2).  Overall, U.S. SMEs are still focused on serving the domestic market only: merely 5 percent of the 6 million employment-providing SMEs export (and only about 1 percent of all 29 million SMEs). However, there is variation across sectors: for example, almost 40 percent of computer and electronic product manufacturers and of electrical equipment and appliance manufacturers export.

Figure 1 – Number of U.S. Exporters in 2012, by Company Size and Broad Sectors 

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Source: Author on the basis of U.S. Census Bureau (2014).

Figure 2 – Value of U.S. Exports in 2012, by Company Size and Broad Sector (in $ billions)

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Source: Author on the basis of U.S. Census Bureau (2014).

 

Most SME exporters are small: almost half of U.S. exporters, or 146,296 companies, have fewer than 50 employees (figure 3). Only 2.2 percent of U.S. exporters and 3.4 percent of U.S. manufacturers exporters are large companies, or firms with more than 500 employees.

Figure 3 – Number of U.S. Exporters in 2012, by Firm Size Category

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Source: Author on the basis of U.S. Census Bureau (2014).

Particularly these smaller SME exporters are undiversfied, exporting to only 1-2 markets. Indeed, most SME exporters are still rather undiversified – some 59 percent of exporters export to just one market and 83 percent export to 1-4 markets (figure 4).

Figure 4 – % of SME Exporters in 2010, by Number of Export Destinations

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Source: Author on the basis of U.S. Census Bureau (2014).

 

SMEs Prominent also among Diversified Exporters

SME exporters make up the majority of the number of exporters, and also a rather substantial share of the highly diversified exporters. SMEs make up 44 percent of the 6,692 companies exporting to 50 or more markets (figure 5). The rest, or 66 percent, of these companies exporting to 50 markets or more are large companies (companies with over 500 employees). This is hardly surprising, given that company size correlates with export diversification. SMEs make up nearly 60 percent of U.S. firms exporting to 25-49 countries. Larger companies also play a more pronounced role in the export value (figure 6). Notably, though, SME exporters make up the bulk of exports generated by exporters that ship to 1-49 countries. It is the U.S. multinationals that ship to over 50 countries that dominate the aggregate export data.

Figure 5 – Share of SME Exporters of the Number of U.S. Exporters in 2012, by Exporter Size Categories and Number of Export Destinations

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Source: Author on the basis of U.S. Census Bureau (2014).

Figure 6 – Share of SME Exports of All U.S. Exports in 2012, by Exporter Size Categories and Number of Export Destinations

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Source: Author on the basis of U.S. Census Bureau (2014).

Tables 1-3, based on year 2000 data, illustrate these patterns further. Most U.S. exporters ship 1-2 products to 1-2 markets: 56.7 percent of exporters are of this kind. These companies make up a small share of U.S exports. However, they employ a substantial 11.5 percent of workers employed by exporting companies. In other words, although SMEs have yet to catch up with large companies’ export volume, they represent a significant share of the number of exporters and of employment offered by exporters.

Table 1 – Distribution of Exporters and Export Value by Number of Products and Export Destinations in 2000: Share of Exporting Firms

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Source: Bernard et al. (2012).

Table 2 – Distribution of Exporters and Export Value by Number of Products and Export Destinations in 2000: Share of Exports

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Source: Bernard et al. (2012).

Table 3 – Distribution of Exporters and Export Value by Number of Products and Export Destinations in 2000: Share of Employment

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Source: Bernard et al. (2012).

SMEs Export to Canada, Mexico, China, and UK

SMEs’ export destinations reflect overall U.S. trade patterns, with Canada, Mexico, and China as the leading markets by export volume. Most SME exporters are also focused on these markets, as well as on UK, Germany and Australia (figure 7). Regionally, most SME exporters are in California, Florida, New York, and Texas (figure 8, appendix table I). These states also make up the bulk of the value of U.S. SME exports. At TradeUp, we are working with SMEs across the U.S., to keep their ranks and exports growing, and help U.S. businesses to realize their full potential in international markets. We also believe these companies have the greatest shot at growing into large businesses, creating jobs, and boosting America’s economic growth and competitiveness.

Figure 7 – Number of SME Exporters and Value of Exports in 2012, by Export Destination by State

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Source: Author on the basis of U.S. Census Bureau (2014).

Figure 8 – Number of SME Exporters and Value of Exports in 2012, by State of Origin Image

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Trading Up: Being Small and Going Global – Ideas Lab

Trading Up: Being Small and Going Global – Ideas Lab.

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