SBA Study Looks at Small Business Exporters

The United States Small Business Administration (SBA) recently released a report on the Total Addressable Market (TAM) of small business exporters in the country. The study, which relied on data from multiple business surveys, found that the number of exporting small businesses in the U.S. is at 1.3 million. This is a whopping five times higher than previous estimates published by the federal government. The study also indicates that over 2.6 million small businesses make up the TAM, which is the potential market size. This is 42 percent of all small employer businesses.

Here is a look at some more numbers from the report:

In the past, the government has generally utilized U.S. Census Bureau surveys and goods export data to come up with its small business exporter numbers. According to the SBA, the latest official data (from 2020) indicated that there were roughly 264,000 small business goods exporters in the U.S. This did not, however, account for overseas shipments valued less than $2,500 and service exports, including software as a service.

SBA Administrator Isabella Casillas Guzman commented, "SBA’s new research gives insight into the broader impact and opportunity for America’s small business exporters, with findings showing significantly more small businesses exporting than previously reported. The data provides a better guide for the SBA to help ensure America’s small businesses can grow and diversify their revenue through trade. We will continue to strengthen our capacity to provide resources that small exporters need to compete in the global marketplace and power our nation’s economy."

SBA Associate Administrator for International Trade, Gabriel J. Esparza, added, "We know that small businesses are the engine that drives the U.S. economy, and we can now tell a better and more comprehensive story of the importance of exporting for small businesses. We will use this research to support and advance the global market success of U.S. small businesses and evolve our products and services to better meet the needs of those current and future small business exporters."

According to the study’s findings, the highest concentrations of small business exporters and exports are in industries like manufacturing, wholesale, plastics and chemicals, medical equipment, computer system design firms, management consulting, architectural, engineering, legal, and software service providers.

Goods and services exporters like green technology industries are also considered emerging industries, with global demand for environmentally-friendly tech and services on the rise.

The SBA concludes in its report that it is pursuing objectives such as greater diversity among the ranks of American exporters, and enabling small businesses to "move up and mature" on their export journeys with the SBA. This includes STEP grants and growing with Export Express Loans, Export Working Capital Loans, and the Export-Import pipeline. It also says it aims to build the SBA’s brand as the "small exporter’s champion" and partner throughout the export journey.