Export
Issue No. 37 - October/November 2007
We get into export, in a small way
by Tim Harcourt
Small is still beautiful…. when it comes to exporting, that is. That’s the word from the Australian Bureau of Statistics (ABS), who estimate that almost 90% of Australian exporters are SMEs. This confirms previous research by the Bureau which showed SMEs to be the ‘engine room’ of the Australian exporter community in terms of growth potential.
In fact, according to new research by Austrade and Sensis, Australian SMEs are now becoming a regular part of the exporter community. About 15% of SMEs now export, up 2% on the same period last year despite the strength of the Australian dollar. This percentage has remained pretty stable within the 12% to 16% range over the past couple of years. The bottom line is you will find Australian export potential in the grass roots of Australian business — in the suburbs and in regional Australia as well as among the blue-chip corporates at the top end of town.
So who are our small players? Where do they live, what do they do and where do they sell to?
Despite the impact of the resources boom, with the boom export states of WA and Queensland charging ahead, on the SME side it is the manufacturing and services heartland of Victoria that leads the way on 19%. Some 15% of exporters in NSW and the ACT export, with 14% in the NT (the Top End always performs well), 13% in WA, 11% in SA, 10% in Queensland and 9% in Tasmania.
Wholesale trade leads the way with 37% of all its SMEs involved in exporting. This is not surprising as wholesale trade typically involves many exporters and importers. Manufacturing is next on 30%, then business services on 21%. Less prominent were retail, hospitality and building and construction.
Where do the small exporters go? Not surprisingly, proximity and language/business culture are important factors. New Zealand is a destination for 36% of all SMEs who export, followed by the USA on 29% and the UK on 22%.
Better macroeconomic news from Europe has ...
