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Increased market access benefits U.S. small and medium-sized
business enterprises (SMEs).
- As international trade has liberalized, SMEs have
increased exports markedly. Increased market access
for SMEs is critical to continued SME success and
to the overall health of the domestic economy.
- SMEs comprise 97 percent of all exporters, yet fewer
than 1 percent of small businesses export. Of the
SMEs that do export, nearly two-thirds of them sell
into only one foreign market.
- Expanding market access through free trade is therefore
essential for SMEs. Unlike big multinational companies
that can afford to establish foreign affiliates to
avoid trade barriers, exports are often the only way
for SMEs to sell into these markets.
For most SMEs, export markets present an opportunity
for significant growth.
- Between 1992 and 2001, the number of SMEs that exported
increased by 250 percent — double the growth rate
of large-firm exporters over the same period. Even
more SMEs export indirectly as suppliers and subcontractors
for large exporting firms.
- From 1992 to 2001, SME exports to Brazil surged
by 242 percent, while exports to Switzerland increased
227 percent, sales to Malaysia increased 220 percent
and sales to China rose 191 percent.
Increased market access is especially crucial for many
high-technology SMEs.
- In 2001, SMEs accounted for more than 90 percent
of U.S. hightechnology exporters. Small firms employ
more than a third of the total U.S. high-technology
employees and produce more than half of the new innovations
in the United States.
- To help SMEs develop their export business, U.S.
Export Assistance Centers coordinate the services
of the U.S. Small Business Administration, the U.S.
Department of Commerce, the Export-Import Bank, and
other public and private organizations to provide
SMEs with export assistance in one central location.

International Trade Administration, “Small & Medium-Sized
Exporting Companies: A Statistical Handbook,” October
2003.
National Federation of Independent Business, “Small
Business Growth Agenda for the 108th Congress.”
SBA Office of International Trade, Web site: www.sba.gov/oit/export/useac.html.
U.S. Chamber of Commerce Presentation, “The State
of the American Economy,” July 15, 2004.
U.S. Department of Commerce, International Trade
Administration, “2002 National Export Strategy,” May
2002.
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