International Trade
• Thirteen (13) percent of small-business owners report that they have had foreign sales in the past three years. This figure jumps to 39 percent when the sample is comprised solely of manufacturers.
• Foreign sales constitute a modest percentage of total sales among those who do sell outside the country. Seventy-one (71) percent of all small exporters have foreign sales comprising 5 percent or less of their total sales. Sixty-one (61) percent of exporting manufacturers have foreign sales comprising 5 percent or less of total sales.
• Most small manufacturers’ sales to customers outside the U.S. have held steady over the past three years. Those who have experienced a change have more often seen an increase in sales than a decrease.
• Canada is the number-one destination for small manufacturers’ goods. Thirty-two (32) percent exports primarily to Canada, followed by 14 percent to Asia, 13 percent to Mexico, and 12 percent to the British Isles.
• The number of countries each small exporting firm sells to varies widely. Nineteen (19) percent sells to one country, while 25 percent sells to over six. Forty-nine (49) percent sell to customers in two to five different countries.
• Most exporters simply take orders from abroad rather than vigorously marketing their products or services. Just 12 percent of exporting manufacturers regularly market outside the U.S. Eighteen (18) percent markets intermittently.
• Firm size matters. Manufacturers with 20 or more employees are more likely to regularly market and sell outside the U.S. than manufacturers with 10 to 19 employees, followed by the smallest firms (1-9 employees).
• Small-business owners’ greatest consideration in keeping business domestic is the belief that opportunities are better in the U.S. than they are abroad. Sixty-eight (68) percent responds that sales opportunities in the U.S. influenced their decision to keep sales domestic.
• The most frequent problem limiting small manufacturers from increasing foreign sales is difficulty locating sales prospects. Respondents also worry that they cannot find a reliable foreign representative to help.
• Few exporting manufacturers rely upon government programs for export sales assistance. Nine (9) percent have turned to the International Trade Administration (ITA) at the U.S. Department of Commerce for help. Just 4 percent has relied upon the Small Business Administration (SBA). Ten (10) percent has looked to another public source designed to promote exports.
• Less than one-quarter (24%) of manufacturers purchased goods or services directly from vendors outside the United States in the last three years. Thirteen (13) percent of all small-business owners made purchases directly from vendors outside the U.S.
