Exports could be the answer to bigger profits and more growth for many small and medium sized businesses, according to President Obama and many bipartisan legislators. The National Export Initiative, launched in 2010, is a government effort to help small and medium sized companies begin exporting their goods. The President spoke of the initiative in his State of the Union Address again this year.
The initiative aims to create jobs as well as promote U.S. businesses. If U.S. companies are selling their goods to overseas markets, they can increase production and make more jobs available to U.S. workers. The goal is to boost the economy and create jobs without using additional taxpayer money.
Currently, only 1% of the 30 million small and medium sized businesses in the U.S. export their goods abroad. The Small Business Administration has increased the maximum amount small companies can borrow for export adventures.
According to Small Business America, small businesses need help identifying opportunities and managing exportation risks. They also need assistance with barriers and tariffs associated with doing business in foreign countries.
Business owners can get more information about the National Export Initiative and other government programs at Export.gov.
Trade Credit Insurance can be purchased to help cover unpaid overseas invoices in some cases where there is a loss from the end buyer of a product. This insurance might give peace of mind to some business owners leery of loosing money on exported goods.
Fox Business reports that U.S. Commerce Secretary Gary Locke, U.S. Trade Representative Ron Kirk, Small Business Administrator Karen Mills and Export/Import Bank Chairman Fred Hochberg will tour the United States as part of the Initiative. They will visit 3,500 small and medium size businesses over the next year. The tour is scheduled to begin February 17, 2011. Their goal is to double the amount of exports by small and medium size U.S. companies by the year 2015.