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B-172255 1 (1973-06-22)

handle is hein.gao/gaobaadyj0001 and id is 1 raw text is: ..D S_. III IIII III I II II I IIN r094102 7: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 INTRNATIONAL DIVISION B-172255 2 97, The Honorable Thomas S. Kleppe Administrator, Small Business Administration Dear Mr. Kleppe: The enclosure to this letter summarizes our review of (1) the services needed to assist small businesses to export and (2) the Government's responsiveness to these needs. We held discussions with officials of 48 small businesses, 10 export management companies (EMCs),l an EMC association, the Department of Commerce, the Small Business Administration (SBA), and the New York State Division of International Com- merce. We interviewed SBA field office officials in Boston, Seattle, and San Francisco. We reviewed records at Commerce's Boston field office and SBA's Boston regional office. We also reviewed a number of studies on small business exports. Although many small firms2 manufacture products suitable for export, they do not do so, largely because they are unable to cope with export details and/or are unaware of overseas sales opportunities. Both Commerce and SBA have a number of programs designed to stimulate small firms' exporting, but these have had limited success. As of June 1972, 147 profes- sional staff members, 67 of whom were international trade specialists, were assigned to Commerce's 42 field offices. Commerce and GAO found that these specialists were re- peatedly visiting certain companies but not reaching hard-core 1EMCs handle a number of U.S. firms' foreign business, usually on a minimum-retainer-plus-commission basis. Their know-how and services particularly aid small companies not yet ready to set up their own export departments. 2SBA defines a small manufacturing firm according to the num- ber of employees. Depending on the type of product produced, the maximum number of employees varies from 250 to 1,500.

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