Can Small Business Survive in the Global Market?
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Today, the way for a country to survive is through economics, not politics. No longer are there incredibly high political borders which inhibit trade because the costs outweigh the benefits. Barriers such as customs and tariffs have diminished and the time is ripe to take advantage of the opening foreign markets. Today, they may only be called "foreign markets" for clarification. Today, we live in one market world. American businesses never had to export before. In the past, demand for products in America exceeded the supply and Americans would buy everything. Well, this has changed. Today, there are too many varieties and too many kinds of each product. The supply has finally met and now exceeds the demand. If a business wants to remain profitable it must look to other consumers, foreign consumers. Another positive attribute of exporting is that it is a form of diversification. Selling in another country is advantageous when America has a recession, because only domestic sales would decrease. Finally, today big business is strong in America. These big businesses push small businesses, 100 employees or less, out of the market. These small businesses should look to foreign countries to be profitable, and isn't that what every business wants to do? niche products are selling like crazy. The world is not a one-size-fits-all world and Small businesses have the ability to find their specific niche and make quality products as they are not working on economies of scale and the owner puts his own time money into the actual development and production of his products Small businesses have the ability to be successful in their pursuit of profits in other countries with the help of many private and government programs which aide the small business through the exporting process. President George Bush's Trade Promotion Coordinating Committee (TPCC) has set up many different aides for the small to medium size business looking to export. Each state is also working on helping the specific businesses in their state which want to export. Montana is one state which is working to expand further into international markets. Through their development of the International Trade Group, this small in population state has discovered that they can export. Currently, it is believed that twelve percent of Montana's business are exporting. The national average for the each state is eight percent, but Montana wants more. Their consumer market in Montana is small and they have just begun the process of learning how to export. What every business needs is the knowledge and many organizations are putting this information together in an understandable and affordable package. Small businesses can and will succeed in exporting.