Wednesday, December 12, 2012

Why do small businesses choose not to export?

What are some main reasons that small businesses choose not to export?

There are many advantages to exporting but small businesses may also choose not to engage in exporting for a few reasons. It may be too overwhelming for a small business to engage in international sales. A small business may not be able to handle the demands of shipping internationally, maintaining a web site in multiple languages, and receiving international payments. Lastly, managers/owners may exhibit risk aversion and a strong desire to avoid the problems associated with selling internationally. This may cause firms to decide to no expand internationally.

What are some popular customer contact techniques?

There are many ways to gain contacts and experience in international markets. For example trade shows, catalogs, international advertising agencies, and government sponsored trade missions are great ways to meet people internationally with similar ideas and businesses. Governments often sponsor events for companies looking to expand into new markets. These host governments will often introduce foreign companies to local sale representatives and distributors.

How important is the first move advantage?

This can be a very important element for a successful entrepreneurial firm. This occurs when a firm moves quickly into a new market and faces little competition. To succeed in a situation like this, the product must be be innovative and comprehensive. To be comprehensive means to exceed customer expectations in order to make it harder for competitors to compete. Overall, a small business may choose to export its products after evaluating its business model and situation.

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