Laurel Delaney, founder of Global TradeSource Ltd.

Despite demand for American-made products abroad, small-business owners’ reluctance to export often means that their products do not find their way into global markets, trade experts told GlobalAtlanta.

The danger for U.S. companies in not going global is that foreign competitors can flood international markets with competing products, said Laurel Delaney, professor of international marketing at Chicago’s Loyola University and founder of Global TradeSource Ltd.

“People internationally are either going to mimic what you’ve done or steal away your product,” Ms. Delaney said.  “The only way to remain competitive is if you’re doing business with the world.”

Dale Hayes, vice president for customer relations management at United Parcel Service Inc., said in a video interview at the UPS Small Business Forum in Atlanta that U.S. businesses can be successful in growing international markets.

“It’s estimated that in the next 10 years there will be an additional billion middle class consumers coming on board around the world,” he said.  “China, India, Russia—markets like that—will play a dominant role in that…those consumers want American goods.”

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Video interview with Dale Hayes, vice president of customer relations management

Ms. Delaney attributed the demand for American-made products in emerging markets to population growth, rising disposable incomes and the prestige associated with popular U.S. brands.

Despite this, the 2007 UPS Small Business Monitor survey found that 67 percent of the 600 U.S. businesspeople surveyed are not doing business abroad.

Ms. Delaney attributed this hesitation to go international to lack of knowledge of foreign markets and customs processes and the feeling among small business owners that doing business domestically is a safer option.

Despite these fears, she said that new tools available to help small businesses enter international markets make the transition into global commerce as easy as possible.

“There is absolutely no reason why small businesses are not going global,” she said.  “As soon as we make it easier for the small businesses to be fearless and [begin] looking at the world as their market, then we’ll see more of them looking outside the U.S.”

The Internet now offers a way for small- and medium-sized businesses to develop an international brand image that quickly catches up with larger, globally recognized companies, particularly through networking Web sites, such as Facebook, MySpace, Second Life and YouTube, Ms. Delaney said.

“As a small-business owner,” she said, “I’m going to do something so that the world recognizes I exist, so the world will come to me.”

Ms. Delaney also said that partnering with larger companies can help small businesses to profit from their trade experience.

UPS and the U.S. Commercial Service formed a partnership in March to encourage small businesses to export.  Ms. Delaney said that this partnership brings together UPS’ international shipping solutions with the market knowledge of the commercial service. 

The effect for a company utilizing this partnership is that it provides “no excuses, just results,” in going international, she said.

Mr. Hayes said that his company is developing online products such as a paperless customs processing option to help small-businesses overcome the obstacles to trade expressed in the small business monitor survey.

UPS and the Commercial Service are also hosting seminars encouraging small- and medium-sized businesses to engage in international trade.  The first of these was a forum in Bangkok, Thailand, Nov. 6 officiated by Eric John, the U.S. ambassador to Thailand, to encourage companies there to do business in the U.S.

Ms. Delaney is also helping companies interested in doing business internationally through her Chicago-based company.  The company’s Web site, www.globetrade.com, serves as a resource for foreign business practices and marketing strategies.