The President Barack Obama recently expressed his plans to double U.S. exports within the next five years. He said this would be a boon for small businesses. He also said that this initiative would help would jump-start the economy. The president said this bill helps small businesses to expand, adding two million jobs and employing more people.
In his speech, he said that small firms handle the export business merely as a sideline and only 4 percent of the small business sector exports. He also mentioned that Fortune 500 companies which constitute a small percent of businesses in the country are major contributors to exports. Many of the small businesses think that their goods and services are not worth selling in foreign markets.
A recent NSBA (National Small Business Association) study stated that 40 percent of small businesses that are not exporting. These small businesses would consider exporting if they are sure that they had available credit and that foreign buyers would pay for their goods or services.
Another major factor is that if they have more knowledge of foreign markets, they would be more confident about exporting goods and services. Obama’s export initiative is more specific to make the export sector more appealing to smaller firms. He vowed to raise credit for entrepreneurs by $2 billion through the Export-Import Bank. He focused on Big Markets like China,India, Brazil.