During a roundtable event earlier this year with eBay executives, eBay small businesses and officials from the U.S. Department of Commerce, U. S. Commerce Secretary Penny Pritzker and eBay Inc. CEO John Donahoe announced a partnership for U.S. trade and investment expansion. The partnership will focus on increasing awareness of the economic benefits of trade, specifically the important role that small and medium-sized enterprises (SME) can play in growing America’s export economy.
For decades, the global market has been largely dominated by big business. However, technology and digital marketplaces have completely revolutionized commerce and created opportunities for small businesses to participate in cross border trade. These opportunities have in turn provided access to new consumers and new opportunities to succeed for businesses that might otherwise be struggling in today’s economy. In fact, 50 to 80 percent of new technology enabled small businesses on eBay survive after their first year, compared with only 20 to 30 percent of traditional small businesses.
A study of the eBay marketplace shows the current level of small business cross border trade on our website points to a revolutionary kind of global commerce. Over 90 percent of eBay Inc. enabled U.S. commercial merchants export, and on average they export to 19 countries. This number is groundbreaking when compared to the less than 5 percent of traditional small businesses that participate in the global market.
As the federal agency tasked with promoting U.S. businesses domestically and abroad, the Department of Commerce looks for partners to promote U.S. exporters. “In a globally-connected economy, American companies have to consider the entire marketplace as they look to grow their businesses and create jobs,” said Secretary Pritzker. “The fact is, 95 percent of worldwide consumers live outside U.S. borders. Whether they are large or small, American businesses cannot afford to limit their options when it comes to selling their goods and services. We look forward to working with eBay Inc. to help America’s small and medium-sized businesses thrive at home and around the world.”
eBay Inc.’s partnership with the Department of Commerce was introduced in a memorandum of agreement (MOA) between the International Trade Administration of the U.S. Department of Commerce and eBay Inc. For more information on the Department of Commerce and the agency’s trade initiatives, please visit the International Trade Administration.
In addition, May is officially World Trade Month. All around the country, state and local governments, nonprofit organizations, and private sector entities are supporting events to help more American companies engage in the global marketplace. For more information on World Trade Month events, please visit the U.S. Department of Commerce. And for those of you on twitter, please tweet your small business trade story by using the official hashtag of #WorldTradeMonth and tagging our twitter account @ebaygr.