Trade: A Big Deal for Small Business

One of the good things about this election year, whether you like it or not, is that the concept of trade – the fundamental exchange of goods and services between the U.S. and other countries – is getting a lot of attention. In the long run, that may be a positive thing.

Impassioned speeches on trade command headlines, but they also drive dialogue, and it’s in that conversation where those affected daily by trade are also heard.

Is global trade good for small business in America? Even during this time of intense debate, American small business leaders see increasing global trade as a way to help the U.S. economy as a whole, as well as their businesses.

We often hear from our own customers about the benefits of trade, but with the new FedEx Trade Index, we commissioned a nationwide survey of over a thousand small business leaders for their views. The results may surprise you.

?        Seven out of 10 leaders who run small businesses not only see global trade in a good light, 71% say it will actually improve the U.S. economy, even if they are not now engaged in trade.  

?        That percentage spikes to 90% among small business leaders whose companies are currently engaged in global trade.

?     As for revenue, 65% of small businesses that trade say their revenue is increasing versus 46% of small businesses that do not trade.

?     As for hiring, small businesses that trade are 20% more likely to say they are hiring more employees than those that do not trade.

With today’s online digital economy, America’s international exports are increasingly being driven by small-and medium-sized businesses who are taking their skills, passions and products to global markets. That puts small businesses on equal footing with larger companies provided they have access to opportunity. One of the most effective ways to increase trade opportunities is through trade agreements.

Sometime this fall, Congress is expected to consider the Trans-Pacific Partnership (TPP), the agreement negotiated with 11 countries which will make U.S. products more competitive by reducing tariffs, and create more opportunities for small businesses by streamlining trade rules. 

The FedEx Trade Index found nearly half (48%) of small business leaders support TPP. That’s more than twice the number who do not support the agreement. For small businesses that already engage in trade, support for TPP rises to 66 percent. 

It’s encouraging during these times that the survey results show small businesses have positive stories that reinforce the benefits of increased U.S. trade. This survey was the first in an upcoming series of the FedEx Trade Index that will track opinion trends in trade issues with small business leaders.  

While the next FedEx Trade Index will be conducted after the election, these results so far show small businesses in America are big supporters of global trade.