EXPORT BASIXS :

HOW
TO FIND OVERSEAS MARKETS FOR YOUR PRODUCT OR SERVICE

By
Elizabeth H. cottrell, IAHBE Staff Editor

 

The world has shrunk. In a movement unprecedented in history, Technology—primarily
through the Internet—has empowered even home-based entrepreneurs to economically expand their market globally. Opportunity does not come without responsibility, however, and your responsibility as a business person is to learn all you can about exporting from your specific location and then deciding if it makes sense for you to do it. This report will get you started. It is oriented towards the U.S. entrepreneur who wishes to export out
of the United States. Information sources for those international business people
who wish to export to the United States will be noted.

Why Export?

The main reason to consider exporting is the potential for increasing sales and profits and reducing your dependence on domestic markets. Depending on your line of work, you may find that the development of an international business can offset a lack of demand for seasonal products in the U.S. and lower your per-unit fixed costs. Sometimes, there are tax advantages as well.

International sales have contributed to nearly 30% of domestic economic growth in recent years. While the number of American businesses sending their goods and services overseas has tripled since 1990, two-thirds of that volume has come from companies with
fewer than 20 employees. You may enjoy reading some export success stories at
www.export.gov/explore_exporting/success_stories.html to see what other businesses
have done.

Why Not Export?

As you might expect, exporting has its drawbacks. It requires a significant commitment
to learning and understanding the exporting process. Sometimes, there are export
licensing requirements, demands on you or your staff for travel, translation
considerations, and often the development of new packaging for country-specific
regulations, as well as new marketing materials geared for your international
market. Exporting is not for the meek or timid.

Understanding the Process

This is the most critical step, because it will help you determine if exporting is
something you should consider or not. There are many links in our Sources and
Resources sections below to help you find information, but start with these:

A Basic Guide to Exporting

www.unzco.com/basicguide/index.html

This is an extremely comprehensive guide that begins with evaluating whether exporting
is for you and continues through the planning and execution of an export business.
It includes financing, payment options, international legal considerations,
and tips on conducting business abroad.

Free Export Basics Webcast Seminar

www.globalspeak.com/html/export-gov/ExportBasics.htm

Click "Learn More and Register Now." Gain the knowledge you need to export a product or service. Tools of the trade: export basics webcast seminar is four hours of free interactive training via a "click and easy" video interface. Learn the step-by-step process of how your company can enter rapidly growing international marketplaces. Learn everything you need to know about exporting from one convenient online interactive training seminar--at  your own pace, from the convenience of your office or home!

U.S. Government Export Portal www.export.gov/

This official export portal helps exporters for domestic and international trade.
The Explore Exporting link in the Trade Assistance box is a nuts-and-bolts coverage
for beginners. It covers questions such as: "What’s In It for Me?","Am I ready for this?", "What do I have to do?", and "Will my products sell?" Use their step-by-step, how-to guides, especially "A Basic Guide to Exporting" above.

Do I Need a License?

Happily, licenses are no longer required for all exports. Unless your product involves
high technology or weapons, you probably won’t need one. There are two
main types of exporting licenses: General and Individually Validated Licenses
(IVL). Read the information at the Global Trades Ltd. Website (www.global-trades-ltd.com/exportlicenseinfo.html)
to determine if you need a license or not.

Finding an Overseas Market

The U.S. Department of Commerce offers excellent market research resources through
its BuyUSA.com Website (www.buyusa.com/cgi-bin/db2www.exe/ trade_assistance/research_markets.d2w/input).
If you end up at a Website in a foreign language, look for the English language
link in the upper right hand corner. This Market Research link (www.buyusa.com/cgi-bin/db2www.exe/mkt_research/mkt_research.d2w/input##)
will take you to other links for Country Commercial Guides that contain detailed
information about local business customs, economic trends, and the political
climate for that country. Also available for U.S. businesses are world reports
by industry and country that can help you determine market potential and identify
key competitors.

For international entrepreneurs seeking to learn about export potential in the United
States, the U.S. Commerce Department also offers U.S. commercial information
by state at this link: www.buyusa.com/cgi-bin/db2www.exe/mkt_research/mkt_research.d2w/input##.
Once you click the state you’re interested in, you will see National Industry
Reports, U.S. State information, U.S. City and County Information, Trade Events,
and much more.

Deciding Whether or Not to Get Certified

If you are manufacturing a product, getting certified by ISO 9000 (International
Standardization Organization--www.iso.ch/iso/en/ISOOnline.frontpage) is an important
step. This organization evaluates the production process quality control--efficiency,
inspection, testing, installation, design, and manufacturing facilities--more
than the product itself. Almost all the European countries require ISO certification
before you may export goods into their country. Notify the ISO that you’re
interested in being certified, and they will explain the process to you. It
will involve sending a team to your manufacturing site for an inspection.

The European Union (www.eurunion.org/) also offers a certification that results
in your obtaining their CE mark. This has more emphasis on the product than
the process. See their Website for details.

Overseas Packaging and Shipping

According to the SBA, the type of transportation used to get the product overseas depends
upon the product's characteristics, timeliness of delivery, and cost. Proper
packaging and the correct mode of transportation will reduce damage and will
get the product to the foreign buyer safely and on time. Considerations include:

Marking and labeling

Documentation

Transportation

Marine Insurance

You should always check with the Trade or Commerce Department of the governments
of any countries to which you wish to export; inquire about any packaging, shipping,
or inspection requirements they may impose on imports.

Copyrights and Patents

Anyone considering exporting should realize that U.S. copyright and patent laws often
do not protect you overseas. The World Intellectual Property Organization (www.wipo.org/),
or WIPO, of which the United States and many other countries are members, will
reciprocally recognize those who have a patent or trademark or copyright in
the United States, but there are guidelines that must be met, and there are
filing requirements.

If this issue concerns you, consult someone with expertise in this area. In some
parts of the world, a product could be copied in every way except some small
detail (like color) without violating invention patents.

Getting Help with Exporting

General export information and development assistance is provided by the SBA (www.sba.gov/oit/textonly/info/index.html).
Links found here include trade counseling, training, legal assistance and publications.
The SBA’s Office of International Trade has a free book available on their
Website called "Breaking Into the Trade Game: A Small Business Guide to
Exporting." You can find it here: www.sba.gov/oit/info/Guide-To-Exporting/index.html.

The U.S. Department of Commerce offers a Personal Trade Assistant (www.buyusa.com/cgi-bin/db2www.exe/trade_assistance/prep_intl_trade.d2w/input)
program. Your local Export Assistance Center trade specialist can help you determine
if you are "export ready" and assist you with the creation of an exporting
business plan. Your specialist can also introduce you to a variety of trade
tools.There
is a network of U.S. Export Assistance Centers (http://www.sba.gov/oit/export/useac.html),
found in major metropolitan areas of the U.S., that provide persoalized service
with local exporting for small-and medium-sized businesses.

Many new-to-export small firms have found the counseling services provided by the
SBA's Service Corps of Retired Executives (SCORE--www.score.org/) particularly
helpful. Through the SCORE Website or your local SBA District office, you can
gain access to more than 850 SCORE volunteers with experience in international
trade.

Through the U.S. Department of Commerce, the International Trade Administration (ITA--www.ita.doc.gov/)
has offices throughout the country where international trade specialists can
help you locate the best foreign markets for your products. On its Website,
the Trade Information Center link offers country-specific information for exporters.

Cautions for New Exporters

There are some pitfalls that new exporters experience. These are sufficiently common
that the Small Business Administration has made a list of the 12 most common
mistakes:

1. Failure to obtain qualified export counseling and to develop a master international
strategy and marketing plan before starting an export business.

2. Insufficient commitment by top management to overcome the initial difficulties
and financial requirements of exporting.

3. Insufficient care in selecting overseas sales representatives or distributors.

4. Reliance on orders from around the world, rather than concentrating on one or
two geographical areas and establishing a basis for profitable operations and
orderly growth.

5. Neglect of export business when the domestic market booms.

6. Failure to treat international distributors and customers on an equal basis
with domestic counterparts.

7. An assumption that a given market technique and product will automatically be
successful in all countries.

8. Unwillingness to modify products to meet regulations or cultural preferences
of other countries.

9. Failure to print service, sales, and warranty messages in foreign languages.

10. Failure to consider use of an export management company when the firm cannot
afford its own export department or has tried one unsuccessfully.

11. Failure to consider licensing or joint venture agreements when import restrictions,
insufficient resources, or a limited product line cause companies to dismiss
international marketing as unfeasible.

12. Failure to provide readily available servicing for the product.

Develop a Plan!

All exporting advice resources say one thing: an exporter needs to develop an international
business plan. A worksheet for developing such a plan is available at www.bizoffice.com/library/files/trad26.txt.
Scroll down to the heading International Business Plan and answer the questions
that follow. When you finish, you will have the content for an international
business plan.

SOURCES FOR THIS REPORT

Globalspeak.Com

www.globalspeak.com/

Interactive Internet TV And Webcasts For International Trade And Business. See the future of international business with globalspeak.com, the world channel of commerce,
interactive internet television and webcasts for export, trade and business
professionals.

Longini, Peter. "Export Basics Boot Camp." Pittsburgh Technology Council Website:
www.imakenews.com/techyvent/e_article000045912.cfm

"Duquesne SBDC Offers Guide to Off-Shore Sales," by Peter Longini. Expanding U.S.
exports of goods and services, as well as attracting foreign investment to Southwestern
Pennsylvania, are major state and national priorities. As a result, there are
a number of organizations in the region offering low-cost or no-cost services
designed to help aspiring exporters prepare themselves to succeed in international
trade. There are also a growing number of Web-based resources as well as an
assortment of professional service firms designed to give prospective exporters
the information, advice, and practical help they need to tap world markets.

U.S. Department of Commerce. "Personal Trade Assistant."

www.buyusa.com/cgi-bin/db2www.exe/trade_assistance/prep_intl_trade.d2w/input

The Trade Tools and Trade Assistant menu on this site are very valuable.

U.S. Government Export Portal" www.export.gov/

This resource site helps exporters for domestic and international trade.

U.S. Small Business Administration. "Is Exporting for You?"

www.sba.gov/oit/textonly/export/IsExforYoutxt.html

More than ever before, it is clear today that world trade is essential to the health
of the American economy and to the growth of most U.S. companies. This is especially
true for small businesses with the advent of increased foreign competition at
home. Entering the overseas marketplace offers exciting opportunities to increase
company sales and profits.

U.S.Small Business Administration. "Cautions for New Exporters"

www.sba.gov/oit/textonly/export/12mistktxt.html

The 12 most common mistakes made by new exporters.

U.S. Small Business Administration. "New-to-Export Small Business"

www.sba.gov/oit/textonly/export/index.html

Finding overseas markets, dealing with the initial complexities of exporting, and financing
export sales are some of the challenges facing smaller firms seeking to participate
in international trade. To help you meet these challenges, the U.S. Small Business
Administration offers aid to current and potential small exporters through two
major programs: business development assistance and financial assistance. These
programs are provided through our network of field offices around the country.

U.S.
Small Business Administration and AT&T. "Breaking Into The Trade Game:
A Small Business Guide" www.bizoffice.com/library/files/trad26.txt

This Guide will help answer questions and take the mystery out of exporting. The
United States government has committed enormous resources to help small businesses,
like yours, reach overseas markets.

RESOURCES FOR FURTHER INFORMATION

Export.Gov
Newsletter

www.export.gov/subscribe.html

U.S. Government export portal helps exporters for domestic and international trade.

Information for exporters of U.S. goods and services

www.buyusa.gov/home/index.php?page=3

Choose an office Website from this list of countries. To find an Export Assistance
Center nearest you, see our list of U.S. Offices.

New exporter services: Australia

www.austrade.gov.au/generic_template/0,1053,ContentGroup%253Dexportready,00.html

Austrade
and Trade Start offer a package of free services designed to assist small- and
medium-sized Australian companies develop their businesses overseas and make
their first export sale.

internet International Business Exchange--Tools for the Global Entrepreneur

www.imex.com/

\International Import Export Business Exchange whose mission is to promote international trade
on the Internet by supplying trade leads, government and business opportunities,
WWW advertising, Web design, and business information.

European Buyers and Suppliers

http://www.imex.com/europages/europages.html

Search by product type or by company name.

Export-Import
Bank of the United States http://www.exim.gov/

This bank is heavily involved in the financing of many export and import businesses.
Their Website offers information about countries as well as educational seminars
and products that they offer.

---

Article
written by Elizabeth H. Cottrell, staff writer and editor for the IAHBE.
Elizabeth is a home-based entrepreneur, freelance technical writer and owner
of Riverwood Technologies, a desktop publishing company in Maurertown, Virginia.

GLOBAL
MARKETS FOR HOME - BASED EXPORTERS

By Yank Elliot , MBA & IAHBE

Staff Writer

 

Finding a niche market in the global economy may be just the right business for a savvy home-based entrepreneur. Thanks to the Internet, anyone, anywhere, can be completely connected to other people
around the globe. What's more, even very poor areas like parts of Latin America,
Southeast Asia, and Africa have become connected by the advent of the cell phone and other wireless devices.
These advances have gone a long way towards overcoming a lack of communication infrastructure.

To maximize profits, the global trader must stay knowledgeable about international
economics, especially foreign exchange rates. These can point to markets of
opportunity, such as those that now exist (summer 2003) in the European Community.
During the first half of 2003, the USD (US Dollar) has fallen over 20% against
the EURO.

There are many available sources of foreign exchange (FOREX) information. An easy-to-use
site is www.x-rates.com/. There is much more about FOREX in another October
MoneyPak article, “Some Uses Of Foreign Exchange."

Currency swings can bring increased profits from more sales to your local company, but
if you are really good at global trading, you may want to establish an offshore
company to sell your products. This foreign company could then convert the EURO,
for example, into USD. Since the EURO will buy more USD outside the U.S., you
would have more dollars available overall—extra profit for you.

However, it's a good idea to wait until you know what you’re doing before you open
an offshore company. Currency fluctuations never last forever and often change
significantly and quickly. You must stay up-to-date with your economic data.

Exporters of consumer goods usually reap the greatest benefits from a declining dollar,
and this is exactly the kind of business where you would expect to find a home-based
entrepreneur.

Why Home Businesses Can Operate Globally

What chance do you, working from home, have in global trading alongside corporate
giants? The U.S. Department of Commerce says large companies generate only about
4% of export sales. Who makes up the other 96%? Small entrepreneurs and start-ups
do the job! That’s you.

A major reason for the success of small firms is flexibility and the ability to
act quickly. Larger businesses in the U.S. take great pains to continually improve
products, strengthen their business organizations, and associate a brand with
everything they produce.

According
to "Culture Matters," edited by Lawrence Harrison and Samuel Huntington,
the Chinese and other East Asian manufacturers have chosen a different strategy
that has been quite successful: they simply find out what somebody wants and
make it.

Small U.S. exporters are able to identify demand and sell products in a similar way.
There are several unique qualities that might make a product desirable to a
foreign buyer. One is the simple fact that it was made elsewhere. Another is
non-availability of raw materials, while still another is lower production cost.
Find a product people want with these features, and you’ve got a winner.

This is just like domestic market research, except you are doing it in the world
market. Knowledge of local culture is helpful to know how other people react
to a product.

Places to Look for a Global Market Niche

There’s
a whole world of countries with whom to trade, but the U.S. Census Bureau lists
these among the top 10 U.S. trading partners: Canada, Japan, Mexico, UK, Europe,
and China. Here are some Websites to help you find your niche:

Commercial Service, Canada, www.usatrade.gov/Website/ForOffices.nsf/IISKey/

563900FF370EF509852568370080734B

Country Commercial Guides, www.usatrade.gov/website/ccg.nsf/ccghomepage?openform


US Census Bureau, Foreign Trade Division, www.census.gov/foreign-trade/www/index.html


US Commercial Service, The, www.export.gov/comm_svc/

US Department of Commerce, www.commerce.gov/

Don’t Ignore Cultures Different From Your Own

Above
we mentioned,China as one of the top 10 U.S. trading partners. It is likely
to grow exponentially in the future. Why?

China is a different kind of market. It is huge, with over 1.3 BILLION people. True,
many are poor living on farms and widely dispersed, but the farther South and
closer to Hong Kong you get, the more urbanized they are. You must know what
part of China you are investigating for your market.

Less than 6% of Chinese have Internet access, but that’s almost 57 million
users, second highest in the world. Furthermore, there are three times that
many cell phone users, about 162 million. The percentages are small but the
numbers are overwhelming.

Earlier, we mentioned culture. The East Asian cultures, including China, have developed
their commerce using widespread family ties. This happened because, until recently,
there was no concept of Western law based on Roman principles. As explained
in Culture Matters, there was no one to trust except family.

So, how do you do business with the Chinese? It’s who you know! You must spend
time, perhaps years, cultivating an honest trustful relationship. Then you can
do business. If you are in a hurry, try to find a Chinese partner or associate
who already has established ties.

While some cultural barriers are more time-consuming to overcome than others, all
countries have cultural differences that the successful entrepreneur must recognize
and satisfy. As with domestic customers, the way you take care of their needs
will define your bottom line. Many a dot-com ignored this and disappeared.

Niche Market Ideas and Resources

One export niche market exists with many agricultural and food products. In the
U.S., some products can be grown that other countries can’t produce.

Specialties like dried foods, special snack items, and unique processed foods all lend themselves
to small exporters. Often the exporters are the farmers themselves, most of
whom are very small units.

If this area interests you, your state agricultural service can provide help. An
example is Agricultural Utilization Research Institute sponsored by the State
of Minnesota (www.auri.org/).

National governments provide resources for small exporters, too. An example is the Canadian
Forest Service (www2.nrcan.gc.ca/cfs-scf/Canada_wood/english/view.asp?x=27&mid=101).
The report listed here gives some strategic considerations for small, wood-product
providers. Niches develop because buyers perceive unique quality, appearance,
or end uses for products.

More ideas for finding and developing niches may be found by searching Google at
www.google.com/ using the keywords “export niche markets,” along
with variations.

Export.Gov (www.tradenet.gov/) is the U.S. Government Export Portal. This site will lead
you to sources of leads and export information. Many are free, but some charge
various prices. Export.gov can also help with the basics of exporting and market
research.

Many other national governments provide these services as well. Search anywhere using
the keywords “export trade leads,” and you will find a lot of help
for your own small export business.

In the United States, each state has some kind of trade mission assistance to enable
exporters of all sizes to participate in foreign trade missions, even if they
are unable to personally be a part of the mission. If you are not ready to export,
they will help you, as well as advise about legal issues, languages and cultures,
Letters of Credit, and all the other basic export requirements. An example of
such a resource is the North Carolina Export Ready Program at www.exportnc.com/ready/.

International trade is a substantial way to increase economic activity worldwide. It expands
the market for unique goods and services outside of the producer country and
thus increases that county’s revenues. For these reasons, most national
and local governments are quite willing to help local entrepreneurs.

SOURCES

Harrison, Lawrence E., and Huntington, Samuel P., Editors. Culture Matters. Basic Books,
2002, p. 250.

RESOURCES

China For help establishing trade relations with Chinese buyers, http://www.business-china.com/

CIA China Fact Book, http://www.cia.gov/cia/publications/factbook/geos/ch.html

China trade assistance from the United States-China Business Council, http://www.uschina.org/

The Information Network for China, http://www.chinaonline.com/

Canada Canadian
Forest Service, www2.nrcan.gc.ca/cfs-scf/Canada_wood/english/view.asp?x=27&mid=101

Commercial
Service, Canada, www.usatrade.gov/Website/ForOffices.nsf/IISKey/563900FF370EF509852568370080734B

Foreign Exchange

Foreign exchange rates, training, and information, www.x-rates.com/

U.S. and Other International Trade Resources

Agricultural Utilization Research Institute sponsored by the state of Minnesota, www.auri.org/

Country Commercial Guides, www.usatrade.gov/website/ccg.nsf/ccghomepage?openform

North Carolina Export Ready Program, www.exportnc.com/ready/

US Census Bureau, Foreign Trade Division, www.census.gov/foreign-trade/www/index.html

US Commercial Service, The, www.export.gov/comm_svc/

US Department of Commerce, www.commerce.gov/

US Government Export Portal, www.tradenet.gov/

Article by Yank Elliott, a home-based entrepreneur and freelance business writer in
Belhaven, North Carolina, USA. His Website
is www.furriwhalesworld.com. He is currently a staff writer for IAHBE. Contact
Yank at globalbiz@furriwhalesworld.com.

SMALL ECONOMIC UNITS IN DEMAND WORLDWIDE

By
Yank Elliot, IAHBE Staff Writer

Until the late 19th century, nearly all manufacturing and production was done at home
or in very small quarters. All these activities were home-based businesses as we now know them.

Today, home-based activities are increasing worldwide. The global economy, the Internet, and
the need for extra income from small economic units in developing countries are contributing factors.

In developed nations, the lifestyle available from working at home is an attraction.
This kind of enterprise also provides financial support as extra income or as
the main employment for unemployed workers. What's more, many countries are
now changing religious and cultural restrictions regarding women. Pressures
on family finances and women’s rights movements are causing some changes
in these attitudes. There is also worldwide effort to overcome poverty, and
small home-based units provide one avenue for doing this.

Why are small economic units useful? The required investment is small.

Housing space already acquired is available at no extra cost.

All family members can contribute to the financial health of the household.

These ventures are convenient for those who are also responsible for daily household
chores or raising children.

Barriers to home business in some areas:

Illiteracy—Many poor areas have large populations of illiterate people. The struggle to survive
overcomes any thoughts of education. To progress in the 21st century, a minimum
level of literacy is necessary.

Pressures of Poverty—Although some countries are developing free education programs, this often forces families to decide whether to educate their children or send them out to work. It’s a difficult decision when daily life is so demanding. Poverty itself impedes progress of any kind.

Poor or Nonexistent Transportation—Decent transportation is frequently unavailable.
Many places have no electricity, no telephone lines, and no radio or TV.

Religious and Society Taboos—Some cultures are opposed to certain people working,
especially outside the home. This can restrict the effectiveness of poverty
improvement plans.
Fear of Outside Influences—Many fear outside influences, particularly from
Western cultures. The concern is that these may destroy the traditional, native
culture.
Is anything being done to remove these barriers?
The focus is turning toward actually getting money to local people, but challenges
abound. Global companies often take all the profit back home. When governments
are given grants, the people just get a minimum part; the rest is kept for government
use. Responsible companies have scrapped plans in a few areas because the authorities
would not let them pay workers a fair pay directly. The government wanted to
receive the money and dole out a minimum wage.

Fortunately, there are also success stories:

The Internet offers opportunities to telework using a computer. Most of the teleworking
jobs in developing countries are actually performed in commercial areas and
not in homes. Many such jobs are available to women, and some have expressed
a desire to work close to home but not AT home. (Alloo)

Success stories about programs that actually help individuals:

Thailand, Brazil, Tibet, and St. Lucia: http://travel.boston.com/stories/051002_thai_responsibly.html

East Africa and Fiji projects: http://www.boston.com/globe/editorials/bigidea/
ecotourism_honey.shtml

Despite many obstacles, Information Technology (IT) is being used to empower women in small enterprises. A lot of service jobs are outsourced by major Western companies. Other profitable opportunities exist for women's small-scale enterprises in business-to-business and business- to-government markets. (Hafkin and Taggart)
Other ways women can use IT are:

Female
farmers could greatly increase productivity with access to information on improved
agricultural inputs, weather, markets, new production techniques, and farming
technologies.

Entrepreneurs
may benefit from marketing information and the opportunity to advertise their
niche market products everywhere.

Adequate
communication is essential for IT businesses to thrive. One successful model
is Grameen Phone in Bangladesh, téléboutiques in Senegal and Morocco,
and phone shops in Ghana. Not only do the entrepreneurs in the phone business
make money, they provide many around them with access to the outside world.

Financing is an insurmountable obstacle to many. Grameen Bank addressed this
in Bangladesh. They discovered that even with these loans, it takes a poor person
six to 10 successive loans (one year each) and very hard work to cross the poverty
line. The first loan is often as little as $50 (US) with the average a little
over $100 (US). See the Results International Website (www.action.org/microjoel.html)
for more about Grameen Bank.

Similar banks operate in the Philippines, Indonesia, El Salvador, Mexico, and other countries.

There are also poverty banks in the United States. Most offer business training and
support in addition to loans.

Activities that support and promote economic units:

Ecotourism has been a boon to many under-developed areas. Events of September 11, 2001,
and later have diminished its value, however. These are two indications of the
importance of ecotourism:

In the Asia-Pacific region, ecotourism represents 20% of all travel.

Ecotourism travel to Africa accounts for up to 80% in Kenya.'

Here are three discussions of ecotourism: “Clean Industry or Culture Killer”

(www.boston.com/globe/editorials/bigidea/
ecotourism_honey.shtml)

“The Accidental Ecotourist”

(www.americanwaymag.com/business/feature.asp?archive_date=1/1/2003)

“Taking the Natural Path”

(www.emagazine.com/july-august_2002/0702feat1.html)

The Non-Government Organization (NGO), Shirkhat Gah, (http://www.dawn.com/2000/10/06/nat18.htm)
teaches women how to weave popular fabrics on handlooms. Its focus is in the
area of Karachi, Pakistan.

This Kenyan cooperative (http://www.africaonline.co.ke/jisaidie/main.html)
helps rural people market their baskets, jewelry, musical articles, and pottery
throughout the world.

BEENET (http://www.idrc.ca/nayudamma/beekeeping_4e.html)
helps landless farmers in India, Nepal, Bangladesh, Maldives, Sri Lanka, Vietnam,
Thailand, Malaysia, Indonesia, Philippines, China, and Papua New Guinea. They
make money keeping bees.

Escotel
(http://www.ipan.com/PRESS/2001jan/0901esc.htm)
Grameen Phone Sewa operates a local cell-phone industry in rural India. Each
unit not only makes money for the entrepreneur, it usually provides phone needs
to, on average, 5,000 people in surrounding villages.

The Tabitha Foundation (http://www.tabithafoundationaustralia.com/main.cfm?Page=5)
offers Cambodians training in making silk and other products. After six weeks
trainees usually have enough money for the equipment they need.

Financial resources include:

U.S.
SBA fast-track Micro Loan lends up to $25,000. The process takes less than one
week and the term is up to six years. Find the Micro Loan Intermediary near
you here: www.businessweek.com/smallbiz/resources/micro_loan.htm.

Search Google (www.google.com/) with “microloan”
or “micro loan” (using the quotation marks) for many other local
small loan sources.

Calmeadow
(203.162.7.73/webs/environment/UrbanEnvironmentProtect/

www.calmeadow.com/about.htm) is a possible source of Canadian micro loans.

Australians
may qualify for the Australian Regional Assistance Programme (www.ministers.dotrs.gov.au/wt/releases/2002/june/wt33_2002.htm).

Also in Australia is the Grameen Support Group (www.action.org/summaryp.html), Australia.

Future developments for small economic units around the world:

Education
is an issue that will receive a lot of attention. Not only will people learn
how to get out of poverty, they will learn about their health and how to manage
their families better.

Infrastructure
issues will be addressed. New technology will be used to provide access to services
and communication facilities of all kinds.

Perhaps there will be local movements to change social thinking about family relationships.
Any such activity must be within the religious and community values of the people
involved. Outsiders can’t do this.

How can small economic units contribute to overall economies outside their immediate
area?

Small home-based units can be sources of products for large and small companies worldwide.
The Internet can help people publicize what they have to everyone.

These small units are potential customers. The Internet makes this more possible as well.

A lot of home-based businesses provide information as their product. Small economic
units are users of information

SOURCES:

Alloo, Fatma, (Founder, Tanzania Media Women's Association in the Society for International
Development and UNESCO) Women in the Digital Age ?Using Communication Technology
for Empowerment: A Practical Handbook, p. 14. Rome, 1998. Downloadable PDF document:
(www.genderreach.com/pubs/it/execsumm.pdf)

Hafkin, Nancy, and Nancy Taggart. “Gender, Information Technology, and Developing
Countries: An Analytic Study“. USAID’s Office of Women in Development.
June, 2001: http://www.usaid.gov/wid/pubs/it01.htm

Honey, Martha. “Clean Industry or Culture Killer.” The Boston Globe. January
20, 2002: http://www.boston.com/globe/editorials/bigidea/ecotourism_honey.shtml

Lynn, Barry. “The Accidental Ecotourist.” AmericanWay: Trends for the
Modern Traveler, 2003: http://www.americanwaymag.com/business/feature.asp?archive_date=1/1/2003.

Motavalli, Jim. “Taking the Natural Path.” Emagazine.com - The Environmental
Magazine, August, 2002: http://www.emagazine.com/july-august_2002/0702feat1.html

Rubinstein, Joel. “A Poverty Eradication Strategy That Works.” RESULTS International
Website: http://www.action.org/microjoel.html

RESOURCES:

This is a gateway to emerging markets, http://www.emdirectory.com/.
A list of globalization issue sites http://www.brookings.edu/dybdocroot/globalization/

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Article
by Yank Elliott, IAHBE staff writer. Yank is a home-based entrepreneur and freelance
business writer in Belhaven, North Carolina. His Website is
www.furriwhalesworld.com. Contact Yank at .globalbiz@furriwhalesworld.com

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