Why Export Is Important For A Small Business?

Export in India has played an immense role to boost the growth of Indian economy. Considering the prominent growth opportunities, Indian Government has also announced few export policies and schemes to boost the export sector. In fact, India has also developed healthy relations with other countries like USA, Australia, Russia, UAE and European countries as well.  India’s GDP growth rate in export is one of the strong sectors contributing to the constant increase in GDP rate. It is also observed that Small businesses are also expanding their presence at fast pace domestically in India. They have opportunity to expand even more through exporting and can contribute more to the growth of Indian economy. Exporting is important for small firms because of following reasons:

Increase in Sales & Profit: For small entrepreneurs, exporting is the way to increase the sales. Small business can represent their market domestically and nationally so is the sales potential. If a small business starts crossing the borders, then it is considered as more profitable than average business. Sales and profit is likely to increase because foreign markets are more diverse with respect to consumer behaviors, their tastes and preferences. This leads to increase in productivity, product varieties, employee strength etc. Few products or services that are unique may have more command on other countries compared to domestic market.  By doing so, a small business can squeeze the profits and lower the costs.

Balanced Growth: It happens many a times that a small firm can face the fluctuations in business cycle. As the growth rate varies countries to countries, selling the products to different countries at a time can be beneficial for the firm while facing the low demand at home because of seasonal fluctuations. The risk of low growth can be offset by exporting in various countries during recession in any overseas market. Exporting is one of the best ways to balance growth by selling goods where the demand is high in overseas market.

Economies of Scale: Through exports, a small firm can enjoy the benefit of exporting various types of products to different countries which lowered the average costs. Few products which are expensive, unique and not available in overseas market can be exported to the overseas market. Because newer the products, wider the range of acceptance of such products. This refers to high profitability lowering the average costs and competitiveness. By doing so, a small firm can achieve the economies of scale very efficiently.

Innovation & Development: Different markets have different demands, preferences, ideas and techniques to compete in global market. A small business has opportunities to understand the work environment and cultute of other countries by participating in global market which leads to innovation and development in products as well as making the firm more competitive with respect to the global trends to cope with the changing circumstances making the firm equally efficient. Exporting helps the small firms to grow and become more competitive. 

Now-a-days every country is attempting to acquire their share in global trade. Exporting enables a sustainable development and foreign exchange reserves to maintain nation’s growth rate high. And of course, a status of “Exporters”, being involved in International Trade is also that much important. So why not to export? Start exporting and be a part of global trade. And to learn how to export, many training institutions in the field of import and export are there to help you become successful in exporting goods.