Recently in the Export Category


Women Impacting Public Policy joined a recent White House Business Council Meeting to share how various policies are affecting women business owners across the country. The meeting included several White House staff along with top officials from the Department of Commerce and the Small Business Administration.

 

At the meeting, WIPP stressed the importance of capital access as the critical issue for women business owners looking to start and grow their companies, and highlighted WIPP's 2013 Annual Survey finding that it takes an average of two attempts for women business owners to secure funding.

 

Commerce Undersecretary for Economic Affairs, Mark Doms, agreed that the economy would be best served by giving business owners more access to capital. The Commerce Department's new strategic plan, America is Open for Business, reflects that priority by stressing innovation and investment.  

 

SBA Associate Administrator for Capital Access Ann Marie Mehlum concurred, saying her office will continue to identify opportunities to expand access while strengthening SBA's already available capital access programs. She went on to highlight the 7(a) loan program, which supported more than $15 billion in small business loans in FY13.

 

The meeting closed with a discussion of how trade can be used to fuel growth for businesses of all sizes. The Administration agreed there is a need for streamlining and simplification in exporting as well as engaging the women's business community on the value of selling goods and services abroad. Both of those priorities are at the front of WIPP's ExportNOW program that encourages women entrepreneurs to grow beyond our borders.

 

These meetings are open dialogues with policymakers, giving WIPP's advocacy team the opportunity to share ideas and concerns raised by WIPP's members.

Commerce Partnership to Benefit Minority-Owned Exporters - The strategic partnership between the International Trade Administration (ITA) and the Minority Business Development Agency (MBDA) helps minority-owned exporters. With a network of 40 MBDA Business Centers across the United States, MBDA has unique relationships and is well-positioned to support our nation's export goals. ITA's worldwide network of international trade professionals offers a depth of technical expertise in more than 100 U.S. cities and over 70 countries worldwide. Under this active partnership, both agencies will look to complement and build on each other's domestic and global relationships.

WIPP has a robust export education program. For more information on Export N.OW, click here.

Even in the face of unnecessary headwinds created by things like a government shutdown or the still-present threat of a debt-limit default in February (despite the respite offered by the budget compromise), the economic recovery witnessed in recent years is real and encouraging. And near the center of this recovery has been the emergence of a natural gas boom the likes of which few could have predicted, but the breadth of this impact could be greater with policies in place like those that enable American producers to access global markets.


As business owners, one area that should be addressed concerns the need to move liquefied natural gas (LNG) projects forward in a timely manner. The United States has a great economic incentive to pursue increasing LNG experts, and the ability to do so. 

A recent economy in every market scenario examined. In fact, multiple studies show that increasing the exports would work wonders for our domestic economic outlook, and that our reserves can easily meet the elevated demand resulting from access to global markets. 

The economic benefits resulting from increasing LNG exports would be felt far beyond the energy sector. According to a recent ICF International study, the United States could add up to 452, 300 jobs between 2016 and 2035 by increasing LNG production, with total annual GDP growth expanding from $15.6 to $73.6 billion annually between 2016 and 2035.

We would like more clarity on why the DOE is delaying LNG exports. It's certainly not because of a lack of means or capacity to produce. 

The United States ranks #1 in the world in recoverable shale gas reserves. We have ample resources to meet domestic needs and export LNG for decades to come, and we have the political will - from Oregon to Texas to Maryland - to do just that.

Unfortunately, nearly all of these projects - and the permits that they require prior to starting to export - have been sitting in the queue, waiting for approval from the Department of Energy. Applications to export LNG to non-FTA countries have also been in queue before the DOE for months - and in many cases, even years, with no evident timetable for their approval or even their review. What's more, even among those few permits that have been approved, actual construction and competition is no guarantee thanks to the myriad hurdles that export terminals must clear, including, but not limited to environmental review, FERC permits, state siting, potential lawsuits, and financing. LNG export facilities take several years to finance, approve, and finally construct.

While we can all agree that a thorough review process is vital to any infrastructure project, it is clear to us that the delays currently being witnessed relative to the LNG exports are plainly contrary to our national economic interest. And as this delay continues, we run the very real risk of watching the window of opportunity close when it comes to LNG exports.

Market conditions in the United States and globally currently favor America's entrance into the export market. Domestic prices are low, while international prices are high. But this is not a permanent dynamic. Prices can shift. And more over, the United States is not the only nation that hope to export LNG. In fact, as recently as last month, Japanese Prime Minister Shinzo Abe visited Canada to discuss Japan's significant need for imported natural gas. Canada would be more than happy to fill that need - particularly if they face no competition from American companies. 

Export is an important initiative for WIPP, and certainly for its members who are in the energy sector. They feel that it is essential that the DOE acts quickly to spur action on the pending applications. We need to urge the DOE to approve all pending applications for LNG export and let the market determine viability.

The U.S. has a rare opportunity to impact the global energy landscape while narrowing our trade deficit and adding domestic jobs and growth. Let's see if we can cut through the red tape that is holding up needed investment. 

by Barbara Kasoff, President, WIPP

Advice on How to Start Exporting

1:11 PM August 26, 2013

I recently read an article on How to Start Exporting, written by Avram Saunders, the chief executive at Lightning Eliminators & Consultants, Inc., which provides lightning-prevention technology to industrial sites around the world. LEC earlier this year earned an exporting award from the Department of Commerce, and I think you will find the information he shares very informative and interesting.


Avram tells us that the best way to expand your small business is by exporting your product since ninety-six percent of all consumers are outside United States. The list of recommendations provided by Avram Saunders is:

1) Identify strategic target markets.
2) Secure reliable, trustworthy in-country representation.
3) Decide how you'll set pricing.
4) Be overly clear with pricing and financing arrangements/

Avram Saunders claims that their export business has grown 200 percent over the last four years which is encouraging for the small businesses. As a suggestion from him, building relationship with the local Department of Commerce and taking advantage of their offering might be the key to grow the business. Right now, only 18% of WIPP members export a product or service to another country. To increase knowledge and awareness of the opportunity and identify strategies to move forward, WIPP announced a global export program at Clinton Global Initiative in June of 2012 and pledged to reach out and educate 5,000 small businesses to promote export growth. WIPP provides regular free webinars which you can access at their site, www.WIPP.org

To view the whole blog by Avram Sunders, click here and to know more about Avram Saunders' company, click here.

By Lynn Bunim

 

WIPP recommends checking out a new report: "The Impact of Credit Availability on Small Business Exports[1]" (PDF) looks at how "big bank" health impacts exports from the nation's smaller businesses.  It mainly considers those companies with fewer than 100 employees.  The research also determines that small businesses rely on bank lending to export their goods and to do business outside the U.S. more than big businesses do.  A Small Business Trends article on the report, which is excerpted below, is important to read.

The report notes that a sharp decline in small business exports during the financial crisis of 2008 and 2009 causes researchers to wonder. Could there be a connection between lending and small business exports?  The result is a report confirming just that.  As lending declines, so do small business exports. A new report from the U.S. Small Business Administration's Office of Advocacy lays out the data.

 

"Small business that export their goods and services need to compensate for the riskiness of cross-border transactions and to allow for longer transportation times to get goods to market," Dr. Winslow Sargeant, the SBA's chief counsel for advocacy, said in a statement accompanying the report [2].  "Add to that the greater reliance of small firms on ban credit in general, and it's easy to see how even small changes in bank health could have the effect of undermining small business exports."

 

The SBA Advocacy report notes that exports don't really decline from big businesses when banks slow lending.   "The smallest businesses need more access to capital to grow their businesses and export their products," Sargeant said.  He called for banks to open up more capital resources to the nation's small businesses.  The resulting boost will help the economic recovery from the recent recession he says.

 

WIPP recognizes that to strengthen small businesses exports even more, policy shifts are needed to improve access to lines of credit and financing, the report continues.  WIPP has engaged in this issue.  For more information, please visit our ExportNOW page or call WIPP, (415) 434-4314.

 

Additionally, WIPP has developed a series of webinars to support its participation in ExportNOW.  Our first webinar, "Export 101," with the Department of Commerce's International Trade Administration, was an important step in education women- owned businesses about the basics of export.  Our second webinar featured Dario Gomez, associate administrator at the Small Business Administration's Office of International Trade.  You can find the presentations as well as podcasts of the webinars by checking here.  Please click here for a calendar of upcoming events and/or register.

 

 

 

The report, "The Impact of Credit Availability on Small Business Exports"

Article taken from Small Business Trends - http://smallbiztrends.com

URL to article: http://smallbiztrends.com/2013/04/sba-report-small-business-exports.html

 

 

[1] The Impact of Credit Availability on Small Business Exports

[2] said in a statement accompanying the report

[3] banks are lending more to small businesses

 

 

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