Small & Medium-Sized Exporting Companies:
Statistical Overview, 2010

This overview outlines the export activities of U.S. Small and Medium-Sized Enterprises (SMEs). Data presented here are generated from the U.S. Commerce Department's Exporter Database (EDB). Additional information on the EDB can be obtained by viewing the U.S. Census Bureau's Profile of U.S. Exporting Companies, 2009-2010.

For a more detailed explanation of the EDB please see the technical notes.

Many SMEs Stand to Profit from Future Global Trade Negotiations

The Commerce Department's Exporter Data Base (EDB) reveals that in 2010 the total number of U.S. firms exporting goods stood at 293,131, an increase of 6.0 percent or nearly 16,500 companies from the number that exported in 2009. The EDB captures companies exporting merchandise, but not firms that export only services. Also in 2010, the number of identified importers stood at 181,648, which was an increase of 1.0 percent from 2009’s figure of 179,831.

Small and medium-sized enterprises (companies with fewer than 500 workers) would be among the major beneficiaries of U.S. initiatives to reduce foreign barriers to U.S. exports. A total of 286,661 SMEs exported from the United States in 2010, accounting for 97.8 percent of all U.S. exporters. SMEs also accounted for 97.2 percent of identified importers in 2010, with 176,635 SME companies reporting imports.

The known export revenue of SMEs rose to $383.4 billion in 2010, up 24.1 percent from 2009. SMEs were responsible for 33.7 percent of goods exports in 2010. On the import side, SMEs imported $531.3 billion in goods in 2010, which was a 23.2 percent increase from 2009. SME imports accounted for 31.6 percent of goods exports in 2010.

Non-manufacturing companies dominate both exporting and importing by SMEs. In 2010, wholesalers and other non-manufacturing firms (including unclassified firms) made up 76 percent of all SME exporters, generating 67 percent of total SME exports, and accounted for 81 percent of all SME importers.

Of those companies that engaged in trade, 80,640 both exported and imported merchandise in 2010. Of these, 76,335 were SMEs, accounting for 94.7 percent of companies that both export and import. In 2010, wholesalers and other non-manufacturing firms made up 70.5 percent of all SMEs that registered both exports and imports.

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SMEs Have a Global Reach

Evidence shows that many SMEs could sharply boost exports by entering new markets. In 2010, 59 percent of all SME exporters-nearly three-fifths-posted sales to only one foreign market. On the other hand, more than half-55 percent-of large firms that exported recorded sales to five or more foreign markets in 2010. This trend is also evident on the import side, with 62 percent of all SME importing goods from one foreign market, while 58 percent of large firms imported from five or more foreign markets.

Compared with large firms, SMEs are especially dependent on U.S. Government initiatives to open foreign markets. This is because, unlike big companies, most SMEs do not possess offshore business affiliates that can be used to circumvent trade barriers and gain market access. Ninety-three percent of all SME exporters do business from a single U.S. location, and only 17 percent of SME exports go to affiliates (related parties) abroad. In contrast, 11 percent of large firms that export are single-location companies and 38 percent of the exports from large firms go to foreign affiliates.

Canada is by far the most popular export destination for SMEs. In 2010, some 89,897 SME exporting companies registered sales to Canada. Mexico ranked second, receiving merchandise exports from 48,363 U.S. SMEs. Other popular markets for SME exporters that year were the United Kingdom, Germany, and China.

Together, the NAFTA countries accounted for 26 percent of U.S. merchandise exports from SMEs in 2010. Mexico alone purchased $52.2 billion in merchandise exports from SMEs, followed by Canada with $49.0 billion. Other top markets for SMEs in 2010 were China ($30.4 billion), Japan ($19.2 billion), the United Kingdom ($15.8 billion), Germany ($13.0 billion), and Hong Kong ($12.5 billion).

China is the most popular import partner for SMEs. In 2010, 88,376 SME importing companies registered purchases from China, totalling $139.6 billion and accounting for 26 percent of total U.S. merchandise imports to SMEs that year. Taiwan ranked second (by number of SMEs), sending merchandise to 23,107 SMEs worth $18.6 billion. Other popular markets for SME importers were Italy, Germany, and India. Together, the NAFTA countries accounted for 16 percent of U.S. merchandise imports to SMEs in 2010.

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More Firms Are Exporting to China

A total of 32,213 U.S. firms are known to have exported merchandise to China in 2010 - the last year for which data are available. The 2010 total of exporting firms is nearly eight times the number in 1992, when 4,092 firms exported to China.

The number of known small and medium-sized enterprises (SMEs) that exported to China in 2010 totalled 29,699- up from 3,143 SMEs in 1992.

Ninety-two percent of all U.S. exporters to China in 2010 were SMEs. This is up from 1992, when 77 percent of exporters to the China market were SMEs.

The number of SMEs exporting to China has been rising much faster than the number of large companies. From 1992 to 2010 the number of SMEs exporting to China surged by 845 percent, compared to 165 percent for large-company exporters.

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China is the Largest Supplier for Importers

A total of 91,582 U.S. firms are known to have imported merchandise from China in 2010 - the last year for which data are available. That is an increase from the 87,910 firms that imported goods from China in 2009, and slightly up from the 90,360 firms in 2008.

The number of known small and medium-sized enterprises (SMEs) that imported from China in 2010 totalled 88,376, up from the 84,614 in 2009 and the 86,844 that imported from China in 2008.

Ninety-six percent of all U.S. importers from China in 2010 were SMEs, unchanged from 2009.

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China is an Important Growth Market for SMEs

SMEs are known to have exported goods to China worth $30.4 billion in 2010 (i.e. exports to China that can be linked to individual companies using information on U.S. export declarations). China was the third largest market for U.S. merchandise exports from SMEs and these businesses are responsible for a significant share of U.S. exports to China. In 2010, SMEs generated 35.3 percent - over one-third - of all known U.S. merchandise exports to China. This is higher than the SME share of overall U.S. merchandise exports of 33.7 percent.

SMEs are also known to have imported goods from China worth $139.6 billion in 2010 (i.e. exports to China that can be linked to individual companies using information on U.S. export declarations). China was the largest market for U.S. merchandise imports from SMEs, and these companies are responsible for a significant share of U.S. imports China. In 2010, SMEs generated 40.5 percent, more than two-fifths, of all known U.S. merchandise imports from China. This is far higher than the SME share of overall U.S. merchandise imports of 31.6 percent.

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