EFFECTIVENESS OF GOVERNMENT EXPORT ASSISTANCE FOR U.S. SMALLER‐SIZED MANUFACTURERS: SOME FURTHER EVIDENCE

Abstract

Introduction and Methodology Current statistics indicate a considerable untapped potential in overseas markets, particularly for the smaller U.S. companies. The role of federal and individual state governments — in spite of current contrary evidence — is potentially particularly relevant and this paper therefore reviews the level of awareness and usage of government assistance amongst a sample — from Oregon, Washington and Idaho — of smaller manufacturers. The sample of 129 respondents (86 existing exporters and 43 non exporters), all with under 500 employees, was supported by a small number of contracts at federal and state government level. Results and Discussions Almost 80% of exporters began exporting as a result of company sales effort or an unsolicited enquiry/order. Only 1 respondent started with a federal government generated lead, whilst none came from state governments. Major problems encountered overseas included documentation, lack of customer leads, foreign competition, locating distributors and markets and financing sales. Surprisingly, lack of government assistance was very infrequently raised which may indicate a low awareness level of governmental services or that little is to be gained by working with governments. The non exporters were neutral about assistance offered because little government activity had been directed towards them and they were unfamiliar with the existing availability and usage of government programmes. Conclusions Contrary to governmental views, their programmes are generally unfavourably viewed and there is therefore a need to reappraise the effectiveness of export assistance programmes as well as the methods used to generate user awareness amongst businesses. Accepting the small sample base, there is evidence of a lack of understanding between government and small business as to the role and value of existing export assistance programmes. Future programmes should consider the real needs of the small exporter and acknowledge their different stages of development, varying periods of overseas involvement and levels of export expertise.