Exports are viewed as a major driver of the nation’s economic future, but many small businesses are often skittish about selling their products or services in new markets, particularly outside the United States.
Connecticut is looking to change that.
The state’s Small Business Development Center is launching a new comprehensive program that aims to get in-state companies to start selling goods overseas within one year.
The new program, called 365 to Export, is being unveiled this week with the hope of attracting 10 to 15 companies to participate in the year-long training sessions that aim to teach businesses about export marketing, finance and logistics as well as how to develop an international business plan.
Ginne-Rae Clay, state director of the Connecticut Small Business Development Center, said the program came about because there are no organizations in the state that work with small businesses that are looking to start doing business overseas. While the Department of Economic and Community Development and U.S. Department of Commerce work well with established exporters, there is little help for new firms looking to get into the game.
“There is a significant need to help educate small businesses on exports and get them off in the right direction,” Clay said. “The whole idea can be scary and intimidating without knowing the resources that are available.”
In Connecticut, exports are a nearly $16 billion industry that has grown significantly in recent years and is seen as a major driver in future economic growth. Nationally, there is a major push to boost exports, especially after President Obama unveiled plans last year to double U.S. exports in five years. The problem is only about 1 percent of American companies export at all, and of those businesses, 58 percent export to only one market.
Jeff Ardis, a SBDC consultant, said the important thing is to try to convince small companies that it’s not just the big conglomerates that can tap into overseas markets.
In fact, 97 percent of all exporters are small businesses, Ardis said.
“A successful exporter doesn’t just have to be a company that builds helicopters,” Ardis said. “It can be a components manufacturer that just creates one part of the helicopter.”
Ardis said Connecticut’s 12-month export training skills course will begin with five half-day workshops, which will likely occur monthly. Topics discussed will include how to develop an international business plan, including how to use trade data to identify promising markets.
Export logistics, including free trade agreements, product classification and compliance and legal considerations will also be discussed as well as export finance and marketing. At the end of the year, each business will have produced an international business plan, Ardis said. The SBDC is running the program in partnership with DECD and the Department of Commerce and it is being funded by a grant from the Small Business Administration and the state. The goal is to start the program in January.
