Globalization and international trade was once driven almost exclusively by large multinational corporations.
No longer.
Propelled by global online markets and platforms and a growing global middle class, small businesses and even freelancers and individuals are exporting goods and services in growing numbers.
In fact, according to the U.S. SBA small business goods exports have grown from 29% of total U.S. goods exports in in 2004 to 34% percent in 2014.
As the chart below shows, we're forecasting small business exports will continue to grow and gain share, reaching 48% of U.S. goods exports in 2026.
The rise of the Internet and global online marketplaces has been the major driver of this trend and will continue to do so.
These have reduced many of the non-tariff barriers to trade, especially reducing and even eliminating the need for a local presence as well as the detailed knowledge of a country’s business landscape, culture, customers and language that foreign trade once required.
They’ve also made it much easier for global customers and suppliers to find, connect and do business with one another.
This digitalization of exporting has led to a rapid increase in the number of small business exporters and the growing sharing of exports by U.S. small businesses.
Even freelancers and independent workers (independent contractors, self-employed, independent consultants, etc.) increasingly serve the global marketplace.
Data from the 2016 MBO Partners State of Independence study, for example, showed that about 2 million independent workers sold services or goods to customers outside of the U.S. over the prior year.
This is just the beginning of the small business export boom. The global middle class reached 3 billion in 2015 and could surpass 4 billion by 2021,
And as we recently pointed out, this surging middle class is happening mostly in Asia and other developing regions of the world. It's also driving global economic growth.
As digital platforms grow in scale and sophistication and the global use of the Internet increases, even more U.S small, micro and solopreneur businesses will access these growing, global markets and customers.
To help these micro multinationals, the Global Innovation Forum has released Simple Steps for Global Success, a report with advice on how startups, small businesses and freelancers can successfully engage in global markets.
The report focuses on 4 steps small businesses can take to become successful exporters. These are:
- Recognize the opportunity to be global from Day One;
- Use technology to simplify and extend operations;
- Understand the value of early attention to regulatory compliance;
- Engage professional advisors early in your small business journey.
See the report for more details.
Nice
Posted by: Kavierer Loopjers | November 02, 2017 at 11:39 PM