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A recent survey of U.S. small businesses revealed a striking discrepancy between their exporting practices and their knowledge of available resources. On one hand, small companies are exporting to more countries and encountering little apparent damage as a result of the strengthening dollar. However, on the other hand, these companies seem as unfamiliar with the resources and events available to help increase their exports as they were six years ago when the last survey was conducted. WPG’s mission is to consolidate these multitudinous resources to allow smaller companies to drive their success at every stage of their exporting and importing endeavors.
WPG is a strong proponent of government export assistance programs. As such, we were disappointed that the only 10% of the 600 small, U.S. companies surveyed knew that the U.S. government employs trade experts in over 70 embassies to help U.S. companies sell to those foreign markets. It is logical to infer that if more companies utilized these services, then their volume of exports would increase.
We’ll note that many SMEs do learn to sell across borders despite their unfamiliarity with the generally free or low-cost assistance programs available. But many of these companies waste resources, time, and capital through their trial and error method of navigating the global trade network. As such, WebPort Global aims to streamline companies export and import expansion.
Moreover, this survey found that an untapped source for supporting and expanding international trade is the Internet; only 25% of the surveyed companies sell their products directly over the internet. A noted limitation in this data collection is that this study didn't differentiate company websites from e-marketplaces like eBay or WPG. Nonetheless, WPG expects this statistic to grow given the ease of selling in this relatively low-cost, low-risk channel.
Even though only a few of the companies were using the Internet to sell their products, it is a good way for companies to find buyers; 59% of exporting companies reported that they received web inquiries. This survey also showed that the companies gained business from: customer referrals (56%), trade shows (44%), agents and representatives (28%), and federal and state governments (17%).
Prospects aplenty
The Internet might be good places to find clients, but many companies fall into the habit of only publicizing their products in their native tongue. 73% of the companies surveyed described and marketed their products online exclusively in English. This practice narrows their potential clientele audience as most online buyers show a preference for product information in their own language.
SMEs can also expand their business through using government resources for financing. 66% of the surveyed companies claimed they required payment in advance, even though many importers want terms of at least 30 days and not offering this financing can kill sales. Unfortunately, 85% of surveyed small companies weren’t aware that government sources provide financing programs for this purpose and even insurance against non-payment. 24% of the surveyed companies cited payment concerns as a reason not to export more, and so it's logical to conclude that more companies would export if they used these programs. And while it is not difficult to find these programs in a directed browser search (ex: “U.S. export finance programs”) many small companies simply do not know to explore these programs.
The companies that do not export reported they did so for two main reasons; they feared not knowing enough about the export process and not getting paid. Notably, 58% of these companies reported they'd start exporting if these concerns were addressed. Given that these concerns are easily assuaged, more or less, with existing programs, greater efforts to promote the help available should pay significant dividends.
It leaves you wondering, with so much information available online, why many companies remain in the dark about the available help. Is there some other reason for not exporting the survey doesn’t uncover? Is there some kind of learned helplessness going at play that is entrenched in the SMEs mentalities? Or, are the majority of smaller companies with products to sell simply complacent selling to familiar, close domestic markets?
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| KRU80LL/3AS NTN | 30 | 80 | 37 |
| KRU72LL/3AS NTN | 24 | 72 | 30.5 |