Choice Of Export Markets By Small‐And Mid‐Sized Firms

U.S. exports, which recently have been increasing, are still dominated by large firms. According to one study, only 10 percent of the total U.S. export business is conducted by small companies, in spite of the vast export opportunities that exist. That same study further reports that of those small firms that do export, only 6 to 7 percent of their sales are derived from overseas, as compared to 10 to 15 percent for their counterparts from Japan and Germany. This situation is especially disappointing because small‐ and mid‐sized businesses possess the very attributes that: (1) substantially contribute to the U.S. economy by generating the largest number of new jobs; and (2) portend success in the global markets because these firms produce a wide variety of goods and services, often of exceptional quality. Additionally, small‐ and mid‐sized firms have a high degree of flexibility that allow them to profitably penetrate small markets and small niches in large markets, using strategies that are difficult for large companies to implement.