Originally posted at www.afribiz.info.Shelvin Longmire, a global strategic advisor who specializes in Africa joined “The Art of Making Business Happen” radio show on February 10, 2010. The discussion focused on opportunities for American entrepreneurs in international trade with Africa.
Exporting firms increase their competitiveness and those of their nations. The Computing Technology Industry Association (COMPTIA) reported that U.S. exporters experienced faster growth in their international markets versus domestic markets, and that they tended to be more competitive than firms with domestic-only markets. In the State of the Union, President Obama announced his Global Export Initiative, which he expected to increase U.S. competitiveness and add 2 million jobs in the next five years.
A new season has dawned in U.S. government initiatives to support entrepreneurs and those involved in international trade. In January 2010, three key events were held in Washington, DC focused on small and medium-sized companies interested in doing do business internationally. These events highlighted the increased interest and commitment of the Obama administration to promote and expand opportunities for entrepreneurs. While the news is heartening, the reality is that entrepreneurs will need to drive their own opportunities as always, tapping into these initiatives as they prove useful.
Longmire shared a key resource for entrepreneurs to tap into – U.S. Export Assistance Centers (USEACs). They are located in major metropolitan areas across the country. Check here for locations. A key online resource is www.export.gov. Finally, our host, Lauri Elliott, mentioned a guide which provided information on over 100 government programs to help SMEs do business internationally.
The key is whether or not U.S. entrepreneurs will tap into the opportunities. The host, Lauri Elliott, noted in her research that the United States was not in the top three trade partners with most African countries except oil-producing nations. Longmire agreed indicating that the history Europe had with Africa, and the fact that the U.S. had relinquished the continent to Europe until recently, contributed to today’s picture. Both Longmire and Elliott noted the increasing presence of China in Africa as well. The question was if the U.S. would up engagement, which Longmire felt was the case since the government was beginning to realize the mutual economic benefit to the U.S. and Africa.
Longmire noted a few of the key challenges U.S. entrepreneurs face when doing trade with Africa, including lack of direct shipping lines between U.S. and Africa, finance, and cultural differences in business. Lauri mentioned that the Export-Import Bank was having a conference on March 10-12, 2010 in Washington, DC focusing on financing for SMEs.
Finally, Longmire offered three starter suggestions for U.S. entrepreneurs. First, maximize opportunities in their current market first. International trade is a challenge.
Second, commit time and resources to entering a new market. Third, increase organizational capacities to enter foreign markets. Fortunately, there are many tools, resources, and organizations that can help in this area.
To hear the entire show, visit http://www.blogtalkradio.com/art-of-biz/2010/02/11/opportunities-for-american-entrepreneurs-in-intern. To interact with our expert network, join the Africa-North American Incubator at VC4Africa.com.