08 May Going Global: How Governments support Export

One of the barriers to taking a business into new territories can be the costs associated with setting up new routes to market. What support is available depends on where your main business operates from. How an individual county or trading bloc approaches support for export changes with economic conditions, the prevailing political mood, and cultural factors. With 195 countries (following the U.N. definition and classification) and 10 major trading blocs around the world we can’t cover them all in one blog, but here is a flavor of the support in some of the territories that Terra Sales Solutions work in.

United States:

• Small Business Administration (SBA) Export Programs: The SBA provides a range of resources for exporters, including loan guarantees, educational programs, and matchmaking services to connect with potential buyers. Their State Trade Expansion Program (STEP) offers grants to state governments to support small business exporters. Many state administrations have economic development programs, but they will be the subject of another blog.
• U.S. Department of Commerce’s International Trade Administration (ITA): The ITA describes its mission as, “creating prosperity by strengthening the international competitiveness of U.S. industry, promoting trade and investment, and ensuring fair trade and compliance with trade laws and agreements.” The ITA offers a variety of export promotion programs, including market research assistance, trade missions, and trade shows. They also have industry-specific resources that can help tailor support to your sector.

United Kingdom:

• Department for International Trade (DIT): The DIT offers a range of export support services, including grants for market research and trade missions. Programs like the “Start Exporting” initiative provide guidance and support for businesses new to exporting.
• Innovate UK: This calls itself “the UK’s national innovation agency.” By providing grants and support for research and development (R&D) projects they help businesses grow through the development and commercialization of new products, processes, and services.

Australia

• Export Market Development Grants (EMDG): This grant program by Austrade, the Australian Government’s international trade promotion and investment agency, helps small and medium enterprises with marketing and promotion expenses for exporting.
• Export Finance Australia (EFG): EFG offers loans, bonds, and guarantees to support exporters, especially when traditional bank financing is unavailable.

Some countries, such as India, offer more indirect support. India works through an Export Credit Guarantee Corporation (ECGC) which provides insurance cover to exporters against risks of non-payment by overseas buyers. Along with other countries it operates Special Economic Zones designed to encourage inbound and outbound trade and investment.

The other main support mechanisms for export are the 10 major trading blocs. In general, they don’t directly fund business exports from member nations. Their primary focus is on facilitating trade through reducing trade barriers, standardizing regulations, and promoting trade agreements. Some however do have specific export support programs. Here are a couple of examples.

European Union (EU):

• Access to Markets Program: This program provides financial support to EU companies for participation in international fairs and promotional activities outside the EU. It can help with costs like travel, booth rental, and marketing materials.
• COSME: This program provides funding and support services for small and medium-sized enterprises (SMEs) in the EU. It can help with activities like internationalization, innovation, and design.

Association of Southeast Asian Nations (ASEAN):

• The ASEAN Trade Promotion and Facilitation Programme (ATPF): This helps ASEAN businesses to overcome trade barriers and participate more effectively in regional and global trade.
• The ASEAN Business Innovation Initiative (ABII): ABII supports the development of innovative products and services in ASEAN countries.

These are just a few examples of how countries and trading blocs support export. Eligibility criteria and program details can vary. It’s important to research the specific programs offered by your government to see which ones best fit your business needs. By taking advantage of these government initiatives, you can reduce the financial risks associated with exporting and increase your chances of success in the global marketplace.

With Terra Sales Solutions supporting you by attending trade shows in your company name, arranging, and facilitating on-site client visits you can show your government support service a great return on their investment in your export drive. As the upfront costs of creating, training, and sustaining an in-region sales team are reduced, and your access to local knowledge and contacts greatly enhanced. To learn more about Terra Sales Solutions and how we can work with you to achieve your international expansion goals in any part of the planet, book a conversation, and follow us on LinkedIn for the latest news from Terra Sales Solutions. So, don’t let the fear of the costs of entering new markets hold you back. With the right support from Terra, your business can thrive on the international stage.