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The Honolulu Advertiser
Posted on: Wednesday, October 18, 2006

Small business is good abroad

By Christopher Boyce
St. Louis Post-Dispatch

ST. LOUIS — Jim Rompel had no expectation his Lice B Gone product could be sold internationally while he concocted the first batch in a 5-gallon Igloo cooler seven years ago in the kitchen of his home.

But after two years of moderate success, Rompel began exploring ways to expand his business, Safe Effective Alternatives Inc. Specifically, he was looking for ecologically friendly markets that might be excited by his pesticide-free lice treatment.

To his surprise, he found that market in Canada and now is awaiting approval from Nicaragua's Minister of Health to distribute the product there.

"I attended conferences on tariffs, export documents, international financing, screening possible distributors, customs and taxes," he said. "We tried to familiarize ourselves on all the different business dynamics that we would have to consider that probably are different from those in this country."

Exports now account for about 10 percent of his company's revenue, and he expects that figure to continue to grow.

New entrepreneurs often overlook international trade opportunities. But foreign partners can help many U.S. small businesses grow. In fact, 90 percent of all identified exporters in 2004 were businesses with fewer than 100 employees, according to the U.S. Census Bureau.

There are a variety of reasons for the increase in international exports, said Randall LaBounty, director of the U.S. Export Assistance Center in St. Louis. The strongest are a weak U.S. dollar that encourages other countries to trade here, and fast growth abroad that spurs small and mid-size companies to consider opportunities outside the United States.

Since the end of 2000, the euro has appreciated 34 percent against the U.S. dollar. The euro is the currency for 12 of the 25 member-states belonging to the European Union.

LaBounty said he has had more entrepreneurs asking about international trade, instead of having to prod small-business owners to consider international business partners.

If the growth in Missouri continues, a recent restructuring of World Trade Center St. Louis will have proved timely.

In early August, World Trade Center St. Louis and the St. Louis Center for International Relations merged to concentrate on helping local companies make international deals. As a division of the St. Louis County Economic Council and a part of the World Trade Centers Association in New York, the Trade Center connects local entrepreneurs with federal agencies and consultants familiar with trade-friendly businesses in other countries.

In late September, Missouri District Export Council St. Louis worked with many local agencies, including World Trade Center St. Louis and the export assistance center, to produce World Trade Day, a conference featuring David Bohigian, assistant secretary of commerce for market access and compliance for the U.S. Department of Commerce.

After his speech, Bohigian said it surprises him how even some Fortune 500 companies refuse to commit themselves to building international relationships.

"Small businesses have never had as great opportunities as they do today," Bohigian said. "You've seen the death of distance with telecommunications knocking down trade barriers all over the world. A lot of small businesses end up as accidental exporters when someone overseas sees their Web site."

Still, the lion's share of foreign trade remains in the hands of big corporations. While large businesses compose just 3 percent of U.S. exporters, they account for 71 percent of known export revenue, according to the Census Bureau.