International Trade

1. 1

   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.

2. 2

   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.

3. 3

   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.

4. 4

   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.

5. 5

   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.

6. 6

   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.

7. 7

   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).

8. 8

   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.

9. 9

   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.

10. 10

    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.

11. 11

    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.

Volume 4, Issue 1, 2004
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 4To customers in what country outside the U.S. did you make the most sales in the last three years? Top 100
• 10Compared to your domestic sales, are your sales to customers outside the U.S.:? Top 100
• 1In the last three years, approximately what percent of your total sales were made to customers outside the United States?
• 2Did you ever sell to customers outside the United States?
• 2aWhy did you stop making those sales? Was it because:?
• 2bAre the chances high, so-so, or low that you will start selling to customers outside the United States again?
• 3Over the last three years, has the share of your sales to customers outside of the U.S. been growing, declining, or staying the same? Is that a lot or a little?
• 4aIn the last three years, in approximately how many different countries have you made sales?
• 5Which best describes your sales efforts outside the U.S. Do you:?
• 6Are the majority of your sales to customers outside the U.S. the direct result of orders placed through an Internet Web site?
• 7About how many years have you been selling to customers outside the U.S.?
• 8A(export limitation) Tariffs imposed by foreign governments.
• 8B(export limitation) Foreign government non-tariff barriers such as red tape and unwarranted standards.
• 8C(export limitation) Difficulties financing export sales.
• 8D(export limitation) Difficulties locating sales prospects.
• 8E(export limitation) Profitability of export sales.
• 8F(export limitation) Up-front costs of market development.
• 8G(export limitation) Shifting currency values.
• 8H(export limitation) Lack of management expertise in exporting.
• 8I(export limitation) Identifying reliable foreign representatives.
• 8J(export limitation) American export licenses.
• 9AIn the last three years, have you sought export sales assistance from the International Trade Administration at the U.S. Department of Commerce?
• 9BIn the last three years, have you sought export sales assistance from the Small Business Administration?
• 9CIn the last three years, have you sought export sales assistance from another publicly supported organization designed to promote exports?
• 11In the last three years, have you or has someone on your behalf, spent eight hours or more investigating the potential for selling your products or services outside the U.S.?
• 11aHave you ever considered the possibility of selling to customers outside the U.S.?
• 12AIn the process, was the International Trade Administration at the U.S. Department of Commerce contacted?
• 12BIn the process, was the Small Business Administration contacted?
• 12CIn the process, was another publicly supported organization designed to promote exports contacted?
• 13A(reason NOT to export) My products or services are not really exportable.
• 13B(reason NOT to export) It's too risky.
• 13C(reason NOT to export) Better sales opportunities exist in the U.S. than elsewhere.
• 13D(reason NOT to export) Start-up costs are too high.
• 13E(reason NOT to export) Basically satisfied with your current sales level.
• 13F(reason NOT to export) Lack of expertise to locate and develop markets outside the U.S.
• 13G(reason NOT to export) Couldn't provide the necessary follow-up or service for customers outside the U.S.
• 13H(reason NOT to export) Too much regulation and red tape selling abroad.
• 13I(reason NOT to export) Not competitive outside the U.S.
• 13J(reason NOT to export) Wouldn't feel comfortable doing business outside the U.S.
• 14In the last three years, have you purchased goods and/or services DIRECTLY from vendors outside the United States?
• 14aApproximately what percentage of your total purchases in the last three years have been made directly from vendors outside the United States?
• 15From vendors in what country outside the United States did you make the most purchases in the last three years?