Trade Issues

Small Business Relies on Free Trade

Small American businesses play a much larger role in exports than is commonly perceived, according to experts.

Nine out of every 10 U.S. exporters employ 500 workers or fewer, and account for one-third of exports by dollar value.

A survey sponsored by National Small Business United shows just how important exports are to small firms.

  • Some 26 percent of firms with 500 workers or fewer now export goods and services -- up from 20 percent in 1994, and 16 percent in 1993.

  • Just under half of those that now export are in manufacturing industries.

Those firms which export tend to be among the fastest-growing and most aggressive of small businesses, and account for most of U.S. job growth.

  • Small exporting firms expect a 3 percent increase in their workforce over the next 12 months -- compared to a 2 percent increase among all small businesses.

  • Small exporting firms reported an average 6.7 percent increase in revenue during the past 12 months -- compared to a 4 percent increase for small firms as a whole.

  • More than half of the firms that export say they have developed new products or services during the past 12 months.

  • Small exporters tend to be more optimistic than non-exporters, predicting an average revenue gain of 8 percent over the next year compared with 6 percent with non-exporters.

Economists are concerned that protectionist trade policies would inordinately disadvantage and jeopardize the healthy and growth-oriented small business sector of the economy.

Source: Perspective, "Free Trade and Small Business," Investor's Business Daily, March 5, 1996.


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