EXPORTING TO INCREASE OVER NEXT FIVE YEARS, SURVEY SAYS
By Adnews Staff
Canada's small and medium-sized businesses are aggressively pursuing export markets, according to a study commissioned by Federal Express Canada. About 86% of Canadian small business exporters expect their export volumes to increase over the next five years, while 42% expect a dramatic improvement. Electronic commerce will play a big part in companies' success, while trade agreements will have a minor role. Seventy-two per cent of exports currently use the Internet for ordering, although only 10% of their total orders are conducted on the Internet. Of those businesses not doing business on the Internet, 67% expct to use the Internet within the next five years. Seventy-four per cent of those surveyed said the U.S. is Canada's dominant trading partner. Three-quarters of the respondents said that the North American Free Trade Agreement has failed to open new markets since its introduction in 1994, even though 60% expected in 1995 that the agreement would have a positive effect. Obstacles to exporting cited include government-imposed regulations, customs regulations, knowledge of business etiquette and traditions in other countries, civil unrest in various parts of the world, payment complexities, lack of information on exporting and inadequate infrastructure in the receiving country. Fewer companies are looking to the U.S. as their major export market. While this number reached 86% in 1995, it is down to 76% in the new study. Other countries companies want to export to include China, Eastern Europe, Brazil, Argentina, Benezuela, Korea, South Africa, Columbia, India, Chile, Japan and Mexico. The survey was conducted by The Angus Reid Group of Toronto. Researchers did 504 interviews with representatives of companies with fewer than 100 employees. Federal Express conducted the same survey in 1995.