Export Initiative to Emphasize Small Business

(Journal of Commerce Online – R.G.Edmonson)

President’s program focuses SBA, Ex-Im Bank, other agencies on initiative

The federal government will step up its efforts to help U.S. exporters sell goods abroad, the White House said Thursday.

Several agencies will increase the number of trade missions and encourage foreign buyers to come to U.S. exhibitions, according to a report developed by the Export Promotion Cabinet, which includes the Secretaries of Commerce, State, Treasury, Agriculture and Labor and the heads of all the trade-related government agencies. The government will also be a commercial advocate for U.S. firms competing for international contracts and work to break down barriers to trade.

The report puts trade promotion for small and medium-sized enterprises at the top of the priority list. The Small Business Administration identified more than 2,000 potential exporters in its central contract registration. Read more here.

Reminder: CBP ISF/10-+2 Webinar

May 27, 2010 – Small to Medium Size Companies

U.S. Customs and Border Protection is holding another webinar to help the trade community understand how to comply with the Importer Security Filing and Additional Carrier requirements, commonly known as “10+2,” that went into effect January 26, 2010. CBP be hosting the webinar on Thursday May 27, 2010 from 2:00 to 3:00 PM (EDT), specifically focusing on the needs of small to medium-sized companies importing into the United States.

The one-hour webinar is primarily geared towards small and medium-sized importers who have limited familiarity with the Importer Security Filing and Additional Carrier Requirements.

The program will consist of a high-level overview of the “10+2” requirements, an update on the statistics and current trends, critical information on enforcement; and will conclude with a question and answer session. To register click here.

Small Firms Turn Cautious on Overseas Expansion

(Sharon Singleton — Toronto Sun)

Canada’s small to medium-sized companies may have turned cautious on foreign expansion after the global recession with many saying their earlier expectations for success have not been met, a survey found.

One-quarter of respondents to the KPMG “Taking on the world” survey were unsure if their ventures in overseas markets were successful, while another quarter admitted they weren’t. Half of the 294 companies responding said they thought their operations outside of Canada were successful, but that’s down from last year’s number.

The results contrast with government figures showing that companies are taking advantage of the strong loonie to go on a buying spree for foreign assets, especially in the United States. Read more here.

Government of Canada Announces $450 Million in New Funding for BDC to Assist Canadian Businesses

(Ministry of Industry)

The Honourable Denis Lebel, Minister of State (Economic Development Agency of Canada for the Regions of Quebec), on behalf of the Honourable Tony Clement, Minister of Industry, today announced that the Government of Canada is providing $450 million to the Business Development Bank of Canada (BDC) in support of small and medium-sized enterprises and innovative firms.

The funding will include $100 million to establish the Operating Line of Credit Guarantee and $350 million over three years to help drive venture capital investment in promising Canadian technology businesses.

“Today’s announcement will enable BDC to team up with financial institutions to give businesses with strong balance sheets and business fundamentals access to credit that will enable them to continue playing a key role in the vitality of our country’s economy. The venture capital funding will help growth-oriented businesses achieve even more ambitious objectives, while stimulating the Canadian economy.”

The Operating Line of Credit Guarantee will be delivered under the Business Credit Availability Program as part of the government’s Extraordinary Financing Framework announced in Canada’s Economic Action Plan, and it will improve access to financing for Canadian businesses during this period of economic uncertainty.

Read the complete government press release here.

Canadian Small Businesses See Their Future in Foreign Markets

(Canada NewsWire)

A recent survey conducted for HSBC Bank Canada found that the majority of Canadian small and mid-sized businesses see the benefits of doing business in international markets. According to the survey, 45% per cent of small businesses are currently conducting some business outside of Canada while an additional 8% intend to develop some involvement in international markets over the next two years.

Jon Hountalas, Executive Vice President, Commercial Banking, HSBC Bank Canada, said: "These findings show that even in the current challenging economic times Canadian businesses understand that their future lies not in retreating into our home market but in continuing to look beyond our borders for new growth opportunities."

The HSBC survey was conducted with 250 small and mid-sized business owners and managers across the country whose businesses produced between $1 million and $20 million in annual revenues. It determined that the sectors most likely to be currently doing business abroad are those in the information services and manufacturing industries. Of the companies surveyed who are currently doing business outside of Canada, 72% sell their products and services abroad while 28% source some of their products from outside the country.

While this openness to expanding outside the country bodes well for the future of Canadian small and mid sized businesses, Mr. Hountalas notes that entering new offshore markets under current economic conditions may entail additional risks that many business owners may not have considered. Read more here.

Some Firms Like the Strong Canadian Dollar

(Reuters)

Canadian manufacturers and exporters have loudly complained about the strong Canadian dollar, but not all businesses want the currency to retreat.

The small- and medium-sized businesses that want a weaker currency only modestly outnumber those who say they benefit from a strong Canadian dollar, the Canadian Federation of Independent Business said on Wednesday.

The CFIB, which represents 105,000 businesses, said 27 percent would like a lower Canadian dollar while 21 percent would like it higher, chief economist Ted Mallett told the House of Commons Finance Committee.

The Canadian dollar has risen rapidly in recent months and reached parity with the U.S. dollar in September, for the first time in 31 years. It climbed to a modern-day high of US$1.1039 on Nov, 7, then eased to close on Wednesday at US$1.0125, valuing each U.S. dollar at 98.77 Canadian cents.

Mallett said those in the agriculture and manufacturing sectors mostly wanted a lower currency but in transport, the 50 percent that have an opinion are exactly split on the issue.

“There is real hurt in the manufacturing sector. There is real benefit in other areas of the economy,” Mallett said.

A firm that benefits from a stronger currency could be one that buys its inputs from the United States or elsewhere and sells its finished products in a stable market in Canada, he said.

In contrast, Perrin Beatty, president of the larger Canadian Chamber of Commerce, warned of “unprecedented challenges” that many of his members face.

“Fierce competition from emerging economies like China and India, weaker demand south of the border where 77 percent of Canada’s merchandise exports go, and the stunning appreciation in the Canadian dollar since 2002 have created the perfect storm for export-oriented businesses and companies facing competitors here at home,” Beatty said.

He called for lighter regulation, lower trade barriers between provinces, competitive taxes and better use of skilled immigrants.

Mallett echoed some of these calls but also said that the reduction of inflationary concerns in Canada gave room to the Bank of Canada to reduce interest rates.