Small Business Exportingand the World Wide WebRobert I. TrachtenbergPresidentCentral New York Technology Development Corporation Based on research conducted byWilliam J. Kehoe, University of Virginia
Small Business Exportingand the World Wide Web • Examine exporting as a viable avenue to globalization for a small business firm • Consider the World Wide Web • as a useful source of information on exporting • as well as a way of establishing a firm’s presence in the export market
Globalization and Small Business • You may not have noticed, but your business is global • Your competition is from down the street and around the world
Globalization by the WWW • World trade, as reported in an Ohio State University study, increased from $200 billion to more than $4 trillion over the past two decades • Forrester Research forecasts that Europe's online business and consumer trade will grow in the next five years to 1.6 trillion
Why Export? • Export to stay competitive • Export for counter seasonal/cyclical business • Export to reach a broader market • Not a fix for a broken product or business Sales
Information Needed for Exporting • Does your product have international appeal? • Is your product suitable for use or must it be modified? • Do you need CE Mark/ISO or other regulatory approvals? • What about competition (Market Analysis)? • Is it practical for export (Shipping costs, Shelf life)? • Are there relative currency advantages?
Readiness for Exporting • Do you have full top management buy in? • Are you willing to commit resources ($$)? • Is your domestic business in good shape? • Do you have knowledgeable personnel? • Is your product/service world class?
Opportunities for Exporting • NAFTA • Canada is our largest export partner, Mexico is #2 • The EC creates a monolithic market • Europe is no longer fragmented • The Euro minimizes currency considerations • South America is growing exponentially • Asia is now a viable market for small businesses • EXIM Bank & SBA can finance working capital
Ready…now what? • Develop a market entry plan • What markets? • What products? • What channels? • What promotions? • …? • Locate and use sources of assistance • Government & Not-for-Profit Organizations • Trade Groups • Colleges/Universities • Other
ExportNY • Sponsored by Niagara Mohawk and Empire State Development • Developed and delivered by Syracuse University SOM with TDO support • 10 monthly half-day sessions • Interns work with companies • The class of 2000 starts September 14th
Complete a profile of your company Assess the needs of the potential market Identify tools: technology, finance, expertise Choose high-potential global opportunities Develop foreign-market entry plan Build cultural skills Find and evaluate prospects Plan pricing and budgets Adapt product and promotion to target market Manage product introduction Negotiate long-term relationships Maintain international momentum Through ExportNY you will:
Web Sites to Visit • www.exportny.com • www.cnytdo.com • www.sbaonline.sba.gov • www.tradenet.gov • www.ciber.msu.edu • www.cia.gov export