A World Trade Organization (WTO) report details the number of small exporting companies operating in the United States and the jobs they generate.
According to 2018 data from the Census Bureau, 32.5 million small businesses accounted for 99.7% of all businesses in the U.S. economy and employed 61.2 million workers (46.8% of all employees).
Women accounted for 47.3% of workers and owned 43.1% of small businesses; only one-fifth of small businesses are owned by racial minorities.
In 2019, products exported by some 280,000 small businesses, valued at $460 billion, accounted for 31.6% of total exports.
Although the 242,000 small businesses (with employees) in the manufacturing sector represent only 4% of small businesses nationwide, their 5.1 million employees make up 42.6% of employment in that sector and 8.3% of total employment generated by small businesses.
Small and medium-sized enterprises (SMEs) are a source of employment opportunities.
Small exporting companies
For the first time in a U.S. trade agreement, the USMCA includes a specific chapter on SMEs, recognizing their role in the economy of each signatory country.
According to the WTO, U.S. companies with fewer than 500 employees account for two-thirds of the companies that trade goods with Canada and Mexico.
The Agreement promotes cooperation and information exchange to generate more trade and investment opportunities for SMEs in the region, reduces paperwork for shipments of less than US$2,500, raises de minimis levels, eliminates the local presence requirement for cross-border service providers, and facilitates the exchange of information and best practices for SME participation in covered government contracts, among other measures.
The U.S. Small Business Administration (SBA) tracks in an annual report the savings generated by reducing the regulatory burden on small businesses.
For policymakers, improving the ability of small businesses to participate in the global marketplace is a key objective. Recommendations from the review under Executive Order 14017 call for the following: investing in SMEs and disadvantaged firms in critical supply chains; developing an ecosystem that integrates innovative SMEs and disadvantaged firms; and examining the ability of the Export-Import Bank of the United States to use existing authority to support the U.S. manufacturing sector.
Other policies, such as set-asides and preferences in government procurement, promote economic opportunities for small businesses, including manufacturing.