New Export Initiatives Focus on Opening New Markets to State and Local Businesses

Since the Great Recession, Government agencies in partnership with universities, for-profit and nonprofit other organizations have undertaken new efforts and developed new initiative to increase the number of small businesses in their region or state that are exporting and increase the value of exports for those small businesses that are currently exporting. The Small Business Administration announced the second round of funding for its State Trade and Export Promotion Grant (STEP) Pilot Grant Initiative. The Development Corporation announced Pure Michigan Export Now pilot program. The Brookings Institute announced Metropolitan Export Initiative in four metropolitan areas.

Small Business Administration

The Small Business Administration announced the second round of funding for its State Trade and Export Promotion Grant (STEP) Pilot Grant Initiative — a program to support state & U.S. territories’ efforts to increase the number of small businesses that are exporting and increase the value of exports for those small businesses that are currently exporting. Authorized for three years under the Small Business Jobs Act of 2010, the act will award up to $30 million in FY12 to support authorized activities, including but not limited to:

• Participation in foreign trade missions and market sales trips; and,
• Design of international marketing products and campaigns.

Each state, Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam and American Samoa may submit a single application under the program each year. Applications are due May 17, 2012. Visit the STEP Pilot Grant Initiative website….

Michigan

The Michigan Economic Development Corporation (MEDC) in partnership with Export Now, an export services company, announced the Pure Michigan Export Now — a pilot program that helps consumer-product companies in the state sell their products directly to Chinese consumers via an Internet-based sales platform. With support from MEDC, Michigan companies will pay $1,000 to sign up for one-year of Export Now, two-thirds less than Export Nation’s usual $3,000 charge. To qualify for the pilot program, companies must:

• Be an existing Michigan company that currently manufactures or produces a consumer product;
• Verify that the proposed product or product line has already been sold successfully in the marketplace; and,
• Demonstrate the capability to successfully run an export program by showing previous success in e-commerce, previous success in exporting or the size and maturity of the company. 

Export Now will provide Michigan companies end-to-end Information Technology and logistics services that enables them to easily sell their goods on China’s e-commerce platform, tmall.com. Through the Pure Michigan department on tmall.com’s online store, participating companies will be able showcase their goods in the first-ever mass marketing of Michigan goods to China in a single place. After products are purchased from the online store, Michigan companies will ship goods to an Export Now depot in California. The goods then are consolidated and forwarded to a Shanghai distribution center. All companies pay a transaction cost with each sale. Read the Press Release…

Brookings

On the heels of its release of Export Nation 2012, The Brookings Institute announced Metropolitan Export Initiative (MEI), a ground-up collaborative effort to help regional civic, business and political leaders create and implement customized export plans specific to their metropolitan. In 2012, Brookings will work with four metropolitan areas (Los Angeles CA, Minneapolis-Saint Paul MN, Portland OR and Syracuse NY) in each areas development of an export plan. However, future partnerships are anticipated.

These tailored plans would integrate market intelligence, export-related services and policy reforms to help regions better connect their firms to global customers. Ideally, they will integrate other elements of broader regional economic strategies. Visit the Brookings Metropolitan Export Initiative website….