Tag: Europe

Most of America’s small- and mid-sized businesses have failed to explore the significant growth opportunities offered by an increasingly global economy. Indeed, a new survey conducted for UPS shows 67 percent of the nation’s small-to-mid-sized enterprises (SMEs) are still chaining themselves to the U.S. economy.

The inaugural UPS Business Monitor United States, a survey of 600 business decision-makers conducted by the marketing insight firm TNS, found that only 33 percent reported participating in any cross-border trade. Of those, 15 percent are importers and nine percent exporters. Nine percent do both.

“The survey shows that many American SMEs haven’t gone global yet,” said David Abney, chief operating officer of UPS. “And if they don’t take part in trade, they stand to lose their competitive edge in a business environment that continues to transcend international borders. For example, McKinsey** estimates that nearly 1 billion new consumers are expected to enter the global marketplace over the next decade as a result of economic growth in emerging markets, creating a significant opportunity for American small businesses.”

Survey respondents cite many reasons for not engaging in international trade, including a perception that it is too risky, a lack of knowledge about international markets, unfamiliarity with customs regulations and disinterest in expanding business beyond U.S. borders.

Among businesses that either import or export, 45 percent perceive global trade as a benefit while 18 percent see it as a disadvantage. Slightly more than half – 52 percent – say global expansion will help them remain competitive or create an opportunity to increase profits. One out of every four believes that global expansion could lead to competition that will cut into profits.