Exporting with E-commerce

Small and medium sized enterprises (SMEs) are engines of sustainable economic growth and innovation. Because they represent more than 97 percent of businesses in the United States, their contributions to the commonwealth’s socioeconomic development are critical. Small firms made up 97.3 percent of all identified exporters and pro­duced 30.2 percent of the known export value in FY 2007. (SBA) Faster economic growth needs a wider market; therefore SMEs should expand their operations beyond the local markets and developing a e-business into their market strategy would help them achieve more success and sustainability, particularly in this time of economic uncertainty. The business world is better connected today than ever before with growing technology available worldwide, it is making it easier for business to connect with consumers around the globe. However, most of America’s small business owners never think of competing in foreign markets or realize that 67 percent of purchasing power comes from outside the United States and this global marketplace could be a benefit to America’s small business community. (SBA) Two thirds of the world’s purchasing power is in the hands of 96 percent of the world’s population, these two statistics should be incentive enough.(SBA) Developing a strategy to build an extension and penetrate foreign markets through e-business provides a diversity of customers that generates significantly more transactions, which certainly will increase revenues and profits. Additional foreign sales through online sales over the long term, once export development costs have been covered, there will be an increase overall profitability. A small business that expands their sales through online portals typically stay in business longer, create more jobs and pay higher wages to their employees. This can also alleviate adverse economic conditions at home by having market penetration of foreign markets that still demand U.S. goods.
 

SBA,  http://www.sba.gov/advo/stats/sbfaq.pdf