International trade: An untapped opportunity for Idaho businesses

Small businesses play an outsized role in job creation and economic growth. According to Small Business Administration data, they account for two of out every three jobs created in the U.S. over the last 25 years. But to continue to grow, it’s critical for entrepreneurs to pursue new business development opportunities, and international trade is a compelling option.

The Peterson Institute estimated that three quarters of the world’s purchasing power and more than 95% of world consumers are outside America’s borders, and Idaho businesses are capitalizing on this. In 2024, Idaho exported $4.2 billion of goods and the most recent data show that Idaho exports support an estimated 16,000 jobs, according to the Office of the United States Trade Representative.

Advancements in shipping, logistics and ecommerce have paved the way for small businesses seeking to break into a global marketplace. Shipping and logistics providers provide helpful tools to streamline the export process, such as advanced tracking tools, smart warehousing and greater delivery options. However, despite clear benefits of international trade, the SBA estimates that only about one out of every 100 of America’s small businesses are exporters.

This is a missed growth opportunity. Small businesses that sell their products outside the U.S. often benefit from increased revenue after breaking into new markets. Reaching a larger customer base makes it possible to increase production, which can lower per-unit costs and improve profitability. Finally, exporting helps small businesses gain exposure to new consumer demands, global competition and knowledge transfers from entering foreign markets. This helps small businesses become more innovative and ultimately create stronger products.

In Idaho, we’ve seen many success stories from businesses that export. 1,4GROUP, Inc., which has a global presence on nearly every continent, is a great example.

1,4GROUP offers easy to use products that help maintain freshness in long term potato storage. By preventing sprouting and preserving quality, its products support healthier, longer lasting potatoes. The company exports its products to North America, South America, Europe, Africa and Oceania.

1,4GROUP has made a major impact on developing countries, where they value potatoes’ high yields, adaptability, low costs and nutritional benefits.

Many of Idaho’s small businesses have the potential for success in export markets. Starting a global journey can feel daunting, but you don’t have to do it alone.

Consider the following resources:

• U.S. Small Business Administration Office of Manufacturing and Trade. This government agency provides training, counseling and specialized programs to help small businesses export. They can provide helpful guidance on U.S. laws, trade agreements and government resources.
• U.S. Export Assistance Centers (USEACs): These centers provide one-on-one assistance by USEAC trade specialists. They allow you to tap into a global network of experienced trade professionals throughout the U.S. and in U.S. Embassies and Consulates worldwide.

If you’re ready for your small business to tap into a vast network of potential customers, now is the time to explore possibilities for international trade. By exporting your products, you can position your business for untapped growth opportunities as you enter a global market.

Brad Herbert is an International Banking Consultant for Zions Bank and an organizer of the Zions Bank Crossroads of the World International Trade Summit in partnership with WTC Utah, which connects businesses with global leaders to learn about international trade, economic trends and market diversification. He can be contacted at [email protected] or 801-844-8652.