Home | KeyBank | Managing Risk in Exports and Imports

Managing Risk in Exports and Imports

By
Font size: Decrease font Enlarge font
Managing Risk in Exports and Imports

Whether it’s expanding sales to overseas buyers or purchasing from vendors in other countries, many U.S. small and medium-sized companies (SMEs) are reaping the benefits of foreign trade. International commerce subjects companies to risks as well as opportunities, and requires businesses to understand their exposures and take steps to mitigate them. Fortunately, financial tools and resources are available to help you deal with these challenges and turn foreign business opportunities into profitable outcomes.

International Trade is Big Business for Small and Medium-Sized Companies

International trade plays a major role in the nation’s business, with exports and imports making up approximately 30 percent of the U.S. economy. Foreign trade is not just for large corporations: nearly 98 percent of exporters and 97 percent of importers in the U.S.

in 2014 were small or medium-sized enterprises with fewer than 500 employees. SMEs accounted for roughly one-third of the value of U.S. exports and imports in 2014 and—at 94 percent—made up the lion’s share of domestic companies that both exported and imported goods that year [1].

More and more small and medium-sized companies have been taking advantage of opportunities that foreign markets offer. The value of exports by SMEs soared to

$482 billion in 2014—83.2 percent higher than in 2006— while the number of SME exporters is up 24.3 percent over 2006 levels [2].

Export growth of small and medium-size companies

 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

SMEs (No. 

of companies) 

 

239,287 

 

261,424 

 

282,603 

 

270,053 

 

287,498 

 

296,817 

 

298,782 

 

297,343 

 

297,519 

Value of SME Exports (billions) 

 

$263.0 

 

$314.1 

 

$362.0 

 

$308.9 

 

$384.9 

 

$443.6 

 

$450.6 

 

$471.1 

 

$482.0 

1 2 »
KeyBank
KeyBank
Contributor
KeyBank Commercial Banking is focused on helping middle market businesses get the resources they need to succeed. Our relationship managers and industry experts understand the trends that drive the market, providing insights and advice to make managing a business in a complex and competitive environment easier to navigate. Our experience and expertise bring clarity to the issues that impact middle market business leaders, to help manage today’s challenges while planning for the future. KeyBank is Member FDIC.

More from KeyBank