U.S. Small and Medium-Sized Business Leaders Champion Trade Benefits

In today’s interconnected world, the impact of international trade on small and medium-sized businesses is significant.

Many business leaders in the United States recognize that open trade policies have a direct benefit on their operations.

By engaging in the global market, these businesses are able to tap into a vast network of opportunities that drive growth and innovation.

These opportunities aren’t limited to direct exporters. They also extend to the many small businesses integrated into larger supply chains.

These chains often transact across international borders, creating a ripple effect that touches even those who don’t engage in trade directly.

As a consequence, discussions about trade agreements and policies are very much on the radar of US business owners who understand the broad effects of these deals on their enterprises’ success.

Impact of Global Trade on Domestic Business Growth

Recent insights highlight the critical role of international trade in the growth trajectory of U.S. small and medium-sized businesses (SMBs).

Consensus among these businesses suggests that global trade is instrumental for the U.S. economy’s expansion and job creation, with heartening figures of 88% and 85% respectively supporting this belief.

Economic interactions on a global scale unlock a plethora of opportunities for businesses, with technology playing a pivotal role.

Many SMB leaders attribute e-commerce as a significant facilitator for international trade. Approximately 9 out of 10 respondents find technology platforms indispensable for growing their businesses internationally.

A striking 82% of SMBs surveyed acknowledge the necessity to import goods or components for their production, underscoring the dependence on international trade for internal job support.

Further highlighting this interdependence are the substantial trade ties with prominent economies such as Japan, the United Kingdom, and China, deemed essential by the majority.

Key Statistics from the Trade Index:

• Economic Growth: 88% agree trade contributes to the U.S. economy’s growth.
• Job Creation: 85% believe trade supports job growth.
• E-commerce Impact: 90%+ report e-commerce as essential for engaging in global trade.
• Importance of Trade Agreements: Majority stress on need for ambitious trade deals.
• Shipping Challenges: 84% mention shipping delays or disruptions as key hurdles.

In light of ongoing geopolitical tensions, these businesses do not overlook the various challenges they face.

84% of the businesses surveyed mention experiencing shipping delays or disruptions.

Policy elements like de minimis thresholds, which facilitate smoother trade by simplifying customs paperwork for low-value goods, are critically acclaimed by more than 80% of the leaders.

They fear the operational setbacks that could arise from policy changes.

Reflecting on the evolution of industry perspectives, many business leaders recognize the intensification of global trade over the past decade as a stimulant for innovation and a creator of job opportunities.

This shift in mindset calls for a reinforced focus on workforce development.

A robust 95% of leaders advocate for initiatives that would retrain and upskill workers, enabling the U.S. to remain competitive on the international stage.

FedEx, a global logistics behemoth, periodically carries out this Trade Index Survey.

The data gathered helps in understanding and navigating the interconnected landscape of international trade and its relevance to the prosperity of U.S. enterprises.

For a deeper understanding of these findings, the 2024 FedEx Trade Index Survey Results offer comprehensive insights, while FedEx’s outlook on trade can be explored further at their dedicated trade information hub.