Characteristics and Strategies for 

New Business and Expansion

Minority Exporters:

i

Characteristics and Strategies for 

New Business and Expansion

U.S. Department of Commerce, 

Minority Business Development Agency

By

Sharon T. Freeman, Ph.D.

Published Fiscal Year 2015

Minority Exporters:

This publication was developed by the Minority Business Development Agency (MBDA), a bureau within the U.S. 

Department of Commerce. Sharon T. Freeman, Ph.D. authored this report with contributions and guidance from MBDA 

and the U.S. Department of Interior’s Federal Consulting Group. We would like to acknowledge Adam Goldman, former 

MBDA Research Analyst, and Nicol Turner-Lee, Ph.D. Research Expert, for their thorough review and editing. We would 

also like to thank Kimberly R. Marcus, former Associate Director for Legislative, Education and Intergovernmental 

Affairs, for her stewardship; and Joann J. Hill, Chief of the Office for Business Development, for her input. MBDA 

acknowledges feedback and comments received from the staff at the Bureau of Economic Analysis, Nikolas Zolas and 

Sue Helper, and the U.S. Census Bureau’s, Katherine Russell and Anthony Caruso. 
ii

Foreword

Exporting is good for American business, American workers and the creation of American jobs - it stabilizes families and revitalizes 

communities. With 95 percent of the world’s consumers outside of the U.S., exporting as a strategy for growth in size and scale cannot be 

ignored. Minority business enterprises (MBEs) are uniquely qualified and equipped to enter global markets. They are: twice as likely to 

export; three times as likely to already have international operations and six times as likely to transact business in a language other than 

English. These operational factors strategically position MBEs to be successful exporters. As President Obama leads the nation from crisis 

to recovery, MBEs join all businesses in the restoration of American competitiveness in domestic and global markets. 

This national effort is showcased in the National Export Initiative (NEI) which has successfully doubled U.S. exports in five years. For the 

fifth consecutive year, U.S. exports have set an all-time record, reaching $2.35 trillion in revenue in 2014. In that same year, U.S. export 

goods increased 2.7 percent to a record of $1.64 trillion in key industry sectors: capital goods; consumer goods; petroleum products; food 

and beverage; automotive vehicles and parts. Simply put: when America exports, America prospers. Under President Obama’s leadership, 

we have shifted our economy from a consumer focus, back to the production of goods and services, and created the conditions necessary 

for fair trade: advocacy, export financing, removal of export barriers, trade enforcement and international trade promotion. This ever 

leveling playing field has garnered us access to leading export markets in Canada, Mexico, and China. Through the NEI five-point 

strategy, the U.S. is returning to global leadership in foreign markets and MBEs are a part of that national economic restoration.

The vehicle for our global market engagement is a historic number of Free Trade Agreements (FTAs). The U.S. currently has 20 formal 

trade agreements that support record U.S. exports totaling, $765.1 billion - an increase of 4.3 percent from 2013. In 2014, U.S. exports 

accounted for 11.3 million jobs, adding 1.6 million export-supported, living-wage jobs to the economy since 2009. Based on the most 

recent available data from the U.S. Census Bureau, our report, Minority Exporters: Characteristics and Strategies for New Business and 

Expansion, shares the unique characteristics of exporters. The report also offers comparisons to both non-exporting counterparts and 

nonminority exporters to glean both the opportunities and challenges faced when MBEs conduct business globally. 

The data in the report represents good news for MBE exporters: more than 28,000 MBEs exported goods and services valued at over $30 

billion in 2007, representing 17.5 percent of all classifiable exporting businesses in the United States. For MBEs, significant engagement 

in international sales and trade, leads to stronger businesses, creates new jobs, and in the long-term, contributes to the sustainability of 

the commercial ecosystems necessary to create thriving communities. 

The success of U.S. exporting programs continues under the leadership of U.S. Commerce Secretary Penny Pritzker through NEI NEXT, a 

new customer service-driven strategy with improved information resources that ensures American businesses can capitalize on expanded 

opportunities to sell their goods and services abroad. NEI/NEXT will help even more American companies reach more overseas markets 

by improving data, providing specific export opportunities, access to export financing, and partnering with states and communities to 

sustain local export efforts. 

The Minority Business Development Agency (MBDA) is pleased to be a foundational partner in the President’s ongoing efforts to increase 

U.S. exports. Minority entrepreneurs have the cultural insight, linguistic skills and market intelligence to not only excel as U.S. exporters, 

but to also be strong strategic partners for those entering global markets for the first time. According to 2007 U.S. Census data, MBEs are 

three times as likely to generate 100 percent of their revenue from exports – making MBEs strong allies in U.S. export strategies.

As the nation returns to its position of economic strength and global market leadership, minority entrepreneurs join all American 

businesses in adding value to the nation’s bottom line - creating jobs, restoring communities and instilling hope. We trust that the 

information presented in this report is both informative and instructive, featuring case studies of actual MBE exporters. This report is a 

part of MBDA’s ongoing commitment to offer relevant information on minority enterprises and the valued contribution to our nation’s 

social and economic well-being.

Alejandra Y. Castillo

National Director

Minority Business Development Agency
iii

The State of Minority Business Enterprises

Table of Contents

FOREWORD...........................................................................................................................................................ii

LIST OF TABLES AND APPENDICES.................................................................................................................v

EXECUTIVE SUMMARY................................................................................................................................... viii

INTRODUCTION ...................................................................................................................................................1

DATA AND RESEARCH METHODS ....................................................................................................................2

WHY EXPORTING MATTERS AND HOW THE NATION PROMOTES EXPORTS...........................................3

The Obama Administration and the National Export Initiative (NEI NEXT) ...............................................4

Region-Specific Special Trade Promotion Initiatives of the Obama Administration ................................5

UNIQUE CHARACTERISTICS AND CHALLENGES IN MBE EXPORTING....................................................6

Entrepreneurial Orientation ................................................................................................................................6

Country of Origin Linkages .................................................................................................................................7

Racial and Ethnic Ties..........................................................................................................................................8

Cultural Heritage ...................................................................................................................................................8

Barriers to Exporting ............................................................................................................................................9

A PROFILE OF THE CHARACTERISTICS OF MBE EXPORTERS ................................................................ 11

MBE Export Global Markets...............................................................................................................................12

Top MBE Export Products ..................................................................................................................................13

Other Key Characteristics of MBE Export Markets and Products...............................................................14

Employment by MBE Exporters vs. Non-Exporting MBEs ............................................................................14

Productivity, Employment, and Export Receipts of MBE Exporters vs. Non-Exporting MBEs................15

Analysis of Country of Origin Social Network Effects of MBE Exporters..................................................16

AVAILABLE RESOURCES FOR MBE EXPORTERS........................................................................................ 18

Federal Government............................................................................................................................................18

Local and State Governments ...........................................................................................................................19

Government-Supported Financial Agencies..................................................................................................19

Non-Governmental Facilitators.........................................................................................................................19
iv

CASE STUDIES OF FOUR SUCCESSFUL MBE EXPORTERS....................................................................... 20

Case # 1: MBE Exporter Candace Chen: Exporting to China and to Multiple Countries ........................20

Case # 2: MBE Exporter Irismar Henrie: Exporting to Brazil and to Multiple Countries.........................22

Case # 3: MBE Exporter Luis German Guacaneme: Exporting to Colombia .............................................23

Case # 4: MBE Don Williams: Exporting among African American Firms .................................................24

Lessons Learned From the Case Studies........................................................................................................27

GOING FORWARD............................................................................................................................................. 28

APPENDIX 1: RESEARCH AND METHODS TECHNICAL NOTES ............................................................... 29

REFERENCES..................................................................................................................................................... 37

ABOUT THE MINORITY BUSINESS DEVELOPMENT AGENCY (MBDA)................................................... 40

About the U.S. Department of Commerce........................................................................................................40
v

List of Tables and Appendices 

Table 1. Major Export Categories, 2012....................................................................................................................3

Table 2. Comparisons of MBE Exporter and Non-Exporter Performance 

for Hispanic-Owned Firms, 2007..............................................................................................................................11

Table 3. Top 10 Destinations in Value for MBE Exports, 2007.............................................................................12

Table 4. Select Export Products and Export Receipts of Minority Exporting Firms, 2007.............................13

Table 5. Key Characteristics of All Exporting Firms with and without Employees 

by Race and Minority Status, 2007..........................................................................................................................14

Table 6. Exporting MBE Productivity vs. Productivity of Non-Exporting MBEs, 2007 ....................................15

Table 7. Employees of MBE Exporting Firms vs. Non-Exporting MBEs, 2007 .................................................15

Table 8. MBE Exporter Receipts vs. Nonminority Exporter Receipts, 2007......................................................15

Table 9. Chinese MBE Exports to China vs. Asian Indian Exports to China, 2007...........................................16

Table 10. Asian Indian MBE Exports to India vs. Chinese Exports to India, 2007 ...........................................16

Table 11. Mexican and Mexican American MBE Exports to Mexico vs. Chinese Exports 

to Mexico, 2007............................................................................................................................................................17

Table 12. Hispanic MBE Exports to Mexico vs. Asian Exports to Mexico, 2007........................................17

List of Tables: Appendix 1

Table A. Relative Standard Errors for MBEs with Exports vs. MBEs without Exports for Table 6 ................30

Table B. Relative Standard Errors for MBEs with Exports vs. Nonminority Firms with 

Exports for Table 6 .....................................................................................................................................................30

Table C. Relative Standard Errors for MBEs with Exports vs. Nonminority Firms without 

Exports for Table 6 .....................................................................................................................................................30

Table D. Relative Standard Errors for Asian Firms with Exports vs. Asian Firms without 

Exports for Table 6 .....................................................................................................................................................31

Table E. Relative Standard Errors for Black or African American Firms with Exports vs. Black 

or African American Firms without Exports for Table 6......................................................................................31
vi

Table F. Relative Standard Errors for American Indian and Alaska Native Firms with Exports vs. 

American Indian and Alaska Native Firms without Exports for Table 6 ..........................................................31

Table G. Relative Standard Errors for Hispanic Firms with Exports vs. Hispanic Firms without 

Exports for Table 6 .....................................................................................................................................................32

Table H. Relative Standard Errors for MBEs with Exports vs. Nonminority Firms with 

Exports for Table 7 .....................................................................................................................................................33

Table I. Relative Standard Errors for Black or African American Firms with Exports vs. 

Black or African American Firms without Exports for Table 7 ..........................................................................33

Table J. Relative Standard Errors for American Indian and Alaska Native Firms with Exports 

vs. American Indian and Alaska Native Firms without Exports for Table 7.....................................................34

Table K. Relative Standard Errors for Asian Firms with Exports vs. Asian Firms without 

Exports for Table 7 .....................................................................................................................................................34

Table L. Relative Standard Errors Hispanic Firms with Exports vs. Hispanics Firms without 

Exports for Table 7 .....................................................................................................................................................34

Table M. Relative Standard Errors for Export Share of Total Revenue: MBE Firms with Exports vs. 

Nonminority Firms with Exports for Table 8..........................................................................................................34

Table N. Relative Standard Errors for Comparison of Export Share of Total Revenue Among 

MBE Firns with Exports: Hispanic vs. Asian Firms for Table 8 ...........................................................................34

Table O. Relative Standard Errors for Comparison of Export Share of Total Revenue Among 

MBE Firms: Black or African Americans vs. Hispanic Firms for Table 8 ..........................................................34

Table P. Relative Standard Errors for Comparison of Export Share of Total Revenue Among 

MBE Firms: Black or African American vs. Asian Firms for Table 8..................................................................35

Table Q. Relative Standard Error for Comparison of Chinese MBE Firm Exports to China vs. 

Asian Indian Exports to China for Table 9 .............................................................................................................35

Table R. Relative Standard Errors for Asian Indian MBE Firm Exports to India vs. Chinese Firm 

Exports to India for Table 10 ....................................................................................................................................36

Table S. Relative Standard Errors for Hispanic MBE Firm Exports to Mexico vs. Asian MBE Firm 

Exports to Mexico for Table 11.................................................................................................................................36

Table T. Relative Standard Errors for Mexican, Mexican American, Chicano MBE Firm Exports to 

Mexico vs. Chinese MBE Firm Exports to Mexico for Table 12...........................................................................36
vii

As of 2007, 28,531 minority business enterprises (MBEs) 

generated products and services valued at over $30 billion, 

representing 17.5 percent of all classifiable exporting 

businesses in the United States.2

 This report, Minority 

Exporters: Characteristics and Strategies for New Business 

and Expansion, characterizes the nature of MBE exporters 

to understand the potential for the further growth of this 

group and whether lessons learned from this group can 

be applied to other small and medium-sized enterprises 

(SMEs). MBEs have a strong competitive advantage 

in international business transactions due to cultural 

affinities, multilingual skills, and close ties to countries of 

origin. Through a comprehensive literature review and the 

presentation of select case studies, this report surfaces many 

of the export characteristics of these firms, particularly the 

number of employees, levels of productivity, and share of 

receipts when compared to non-exporting MBEs. 

The data presented in this report is based on the Ownership 

Characteristics of Classifiable U.S. Exporting Firms, 2007: 

Survey of Business Owners and A Profile of U.S. Importing 

and Exporting Companies, 2010-2011. The report concludes 

with four case studies of actual MBE exporters to the 

Obama Administration’s NEI NEXT target markets 

that summarize both best practices and challenges in 

exporting.3

According to the data, MBE exporters have more 

employees, higher productivity and their share of receipts 

from goods or services when compared to nonminority 

exporters. MBEs also have a comparative advantage relative 

to other nonminority-owned firms that allow them to 

conduct more business in the countries in which they have 

ties, as shown in the case of Asian- and Hispanic-owned 

firms. These cultural relationships have helped MBE 

exporters overcome numerous barriers to exporting, such 

as fixed costs that prevent most other firms from doing 

the same. Evidence from the case studies presented in this 

report supports this finding, and shows that, in the absence 

of such linkages, being entrepreneurially-oriented and 

engaging in proper export planning can also lead to viable 

business models. 

Key Findings

U.S. Exports are greatly contributing to 

increased revenues and jobs overall.

•	 U.S. exports of goods and services increased in 2012 to 

a record $2.2 trillion generating 9.8 million jobs overall 

and 13-18 percent higher wages than the national 

average through export jobs.

•	 Over 300,000 identified U.S. exporters were responsible 

for creating these jobs and generating more than $1.3 

trillion in exports.

MBEs benefitted from exporting when compared 

to nonminority-owned exporters in 2007.

•	 Minority-owned firms accounted for a 

disproportionately smaller share of exporters relative 

to their numbers, but exports accounted for a larger 

percentage of their receipts when compared to nonMBE export firms.

•	 Exports accounted for 14.4 percent of total receipts 

($212.3 billion) of minority-owned exporters compared 

to 5.4 percent of total receipts ($2.5 trillion) for 

nonminority-owned exporters.

MBEs experienced growth in size, employees, 

and productivity from exporting, especially when 

compared to comparable minority-owned nonexporting firms.

•	 MBEs exported goods and services to 163 countries 

that were valued at over $30 billion in 2007.

•	 Minority-owned exporting firms were larger than 

non-exporting minority-owned counterparts; average 

receipts for MBE exporting firms were $7.4 million 

Executive Summary

2 Note that 2007 is the latest year for which U.S. Census data are available and are 

constructed as the base year for the Census data used in this report. See also U.S. 

Department of Commerce, U.S. Census Bureau, “Ownership Characteristics of 

Classifiable U.S. Exporting Firms: 2007.” Available at http://www.census.gov/econ/

sbo/export07/index.html (last accessed March 15, 2015).

3 See Executive Order 13534 on National Export Initiative (NEI): “...an initiative 

to improve conditions that directly affect the private sector’s ability to export...” 

(March 11, 2010). Available at http://www.whitehouse.gov/the-press-office/

executive-order-national-export-initiative (last accessed March 5, 2015).
viii

as compared to $141,776 for minority-owned nonexporting firms.

•	 The average number of employees for MBE exporting 

firms was 21; the comparable number for MBE nonexporting was seven.

•	 Average productivity for MBE exporters (i.e., receipts 

per employee) was $407,592; the comparable number 

for minority-owned employer non-exporters was 

$122,545.

MBE exporters were in the same global markets 

as nonminority exporters representing diverse 

goods.

•	 The top ten export markets for MBEs were: China, 

Mexico, Japan, South Korea, Canada, Venezuela, 

Guatemala, Hong Kong, India, and Taiwan. These 

markets are the same for nonminority exporters.

•	 Plastic, iron and steel, nuclear reactors/boilers/

machinery, electric machinery and vehicles were 

among the top five products of MBE exporters.

Some MBE subgroups were higher exporters in 

2007 when compared to others.

•	 The number of Asian American firms (16,451) was 

highest for MBE exporters, followed by Hispanic firms 

(9,868) and African American firms (1,566) in 2007.

•	 MBEs with greater country of origin linkages tend to 

export more to their home country. In this study, for 

example, Chinese-owned firms exported more to China 

than Asian-Indian-owned firms, and this trend was 

consistent for all minority subgroups with country ties, 

e.g., Asian-Indian-owned firms exported more to India 

and Mexican-owned firms exported more to Mexico.

Information from the four case studies also suggests 

that U.S. Free Trade Agreements (FTAs) have greatly 

facilitated the entry of MBEs into global markets. Having 

both private and public partners and a reliable network 

of agents, distributors and other partners in foreign 

markets, the highlighted cases of MBE exporters have 

been able to promote sales and subsequent services. One 

of the additional lessons gleaned from this study is that 

tapping into smaller niche markets can be a key to business 

effectiveness for MBEs entering foreign markets with large 

distributors.

Increased support of MBE exporters is still essential to 

their growth in this area, and analyzing data about their 

characteristics will be useful to understanding exporting 

benefits. As the U.S. population trends toward a majorityminority, the share of MBE business ownership should 

parallel this growth, with exporting as one of many viable 

options available to these firms. In the end, leveraging the 

ability of MBEs to export benefits the nation through job 

and wealth creation that ultimately contribute to U.S. global 

competitiveness in existing and emerging industries. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

1

The nonminority4 population in the U.S. is projected to 

plateau by 2043. Compared to the nonminority population, 

all minority subgroups are projected to increase in their 

share of the total U.S. population between 2015 and 2060.5

 

These demographic shifts follow similar trends in MBE 

growth. In the eight years since the 2007 export data was 

captured, MBEs gained a greater foothold in international 

markets, thus contributing to their export capacity. 

In 2007, 28,531 minority business enterprises (MBEs) 

exported to at least one other country.6

 These firms 

exported goods and services valued at over $30 billion, 

representing 17.5 percent of total exports in the United 

States.7

 MBEs represent many different racial and ethnic 

subgroups and some possess unique qualities such as 

language skills, country of origin connections, racial bonds, 

cultural affinity, and market linkages that enhance their 

ability to create trading opportunities in selected markets, 

and overcome certain fixed cost impediments to exporting. 

Thus, they have a strong competitive advantage when 

entering international markets. Ensuring that MBEs are 

both aware and take advantage of U.S. trade policy, they 

can better position themselves to achieve the goals of the 

U.S. International Trade Administration’s National Export 

Initiative (NEI NEXT).8

This report, Minority Exporters: Characteristics and 

Strategies for New Business and Expansion, defines MBEs 

as businesses that are owned or controlled (greater than 

50 percent) by the following persons or groups of persons 

who are also U.S. citizens or resident aliens admitted for 

lawful admission to the United States: African Americans, 

Hispanics, Asians, Native Hawaiians and Other Pacific 

Islanders, American Indians and Alaska Natives (including 

Alaska Native Corporations and tribal entities), and 

Hasidic Jews.

The Minority Business Development Agency (MBDA) 

commissioned this study to glean insights into the 

characteristics of MBE exporters, and assess whether their 

contributions to exporting could be even greater. 

This report also provides resources for identifying export 

opportunities. Before concluding the report, four case 

studies of actual MBE exporters to NEI NEXT target 

markets are presented to summarize the best practices 

and challenges from their experiences. The report 

concludes with recommendations on how to increase the 

transactional potential of MBE exporters as compared to 

non-exporting MBEs. 

The next section outlines the research methodology for the 

paper.

Introduction

4 This report, like the U.S. Census Bureau, defines nonminority as single race, 

non-Hispanic White. See “About: Race”. Available at http://www.census.gov/

topics/population/race/about.html (last accessed March 15, 2015). See also “U.S. 

Census Bureau Projections Show a Slower Growing, Older, More Diverse Nation a 

Half Century from Now”. Available at http://www.census.gov/newsroom/releases/

archives/population/cb12-243.html.

5 Based on Middle Series projections, Tables 4 – 9 Projections of the Population 

by Sex, Race, and Hispanic Origin for the United States: 2015-2060. See also

“2012 National Population Projections: Summary Tables”. Available at http://www.

census.gov/population/projections/data/national/2012/summarytables.html (last 

accessed March 15, 2015).

6 See U.S. Department of Commerce, U.S. Census Bureau, “Ownership 

Characteristics of Classifiable U.S. Exporting Firms: 2007-Survey of Business 

Owners Special Report.” Available at http://www.census.gov/econ/sbo/export07/

index.html (last accessed March 15, 2015).

7 Note that 2007 is the latest year for which U.S. Census data are available and 

are constructed as the base year for the Census data used in this report. See also 

U.S. Department of Commerce, U.S. Census Bureau, “Ownership Characteristics 

of Classifiable U.S. Exporting Firms: 2007-Survey of Business Owners Special 

Report.”

8 Refer to Executive Order 13534 on the National Export Initiative (NEI): “...an 

initiative to improve conditions that directly affect the private sector’s ability to 

export...” (March 11, 2010). Available at http://www.whitehouse.gov/the-pressoffice/executive-order-national-export-initiative (last accessed March 15, 2015). 

The National Export Initiative (NEI NEXT) is a customer service-driven strategy 

with improved information resources that will ensure American businesses are 

fully able to capitalize on expanded opportunities to sell their goods and services 

abroad. See “Fact Sheet: National Export Initiative/NEXT,” www.trade.gov/

neinext/factsheet.asp (last accessed March 15, 2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

2

Data for the report comes from the following U.S. 

Census Bureau publications: Ownership Characteristics of 

Classifiable U.S. Exporting Firms, 2007: Survey of Business 

Owners (SBO) (2007 SBO), and A Profile of U.S. Importing 

and Exporting Companies, 2010- 2011 (2010-2011 Profile). 

Additional data is gleaned from 2007 U.S. Census data that 

include: U.S. Census Bureau, Ownership Characteristics 

of Classifiable U.S. Exporting Firms: Survey of Business 

Owners, 2007 (2007 SBO), and A Profile of U.S. Exporting 

Companies, 2007-2008 to understand the characteristics of 

minority exporting firms. In analyzing U.S. Census data, 

confidence interval tests were applied to ensure that cited 

results are significant at the 90 percent level.9 The research 

methodology is further explained in Appendix 1.

Such testing was performed on the three main 

characteristics of MBE exporters examined in the U.S. 

Census datasets: size, employment, and productivity.

10 

Confidence interval testing was also conducted to ascertain 

the existence of a “country of origin social network effect” 

that demonstrates whether there is a propensity for certain 

subgroups to export more to the countries of their ethnic 

origin.11 As part of this study, a comprehensive literature 

review is included to expand upon the nature of MBE 

exporting subgroups. 

The U.S. Census Bureau also made some new data available 

to MBDA for this report that includes the countries 

to which MBEs exported in 2007 through the SBO 

“snapshot.”12

Case studies from qualitative interviews performed over 

the course of the research are also included in the report. 

As mentioned, the four case studies focus on the unique 

characteristics of MBE exporters to emphasize both the 

opportunities and challenges faced by new and seasoned 

firms. 

9 In survey sampling, different samples can be randomly selected from the same 

population; and each sample can often produce a different confidence interval. 

Some confidence intervals include the true population parameter; others do not. 

A confidence level refers to the percentage of all possible samples that can be 

expected to include the true population parameter. 

10 The U.S. Census Bureau’s 2007 SBO data for MBE exporters focuses on 

key characteristics of the exporters, but not on information about their export 

behavior. For example, the report, A Profile of U.S. Importing and Exporting 

Companies, 2010–2011, provides data on how exporters export through foreign 

affiliates or as intermediaries, and data on the products and services exported 

to countries, similar data are not available for MBE exporters. It’s underscored 

that the main characteristics of MBE exporters examined by the 2007 SBO report 

pertain to three characteristics: employment size, receipts, and productivity. 

Likewise, the analyses presented in this report focus on these same three 

characteristics. 

11 Confidence interval tests were performed on some of the 2007 SBO data 

pertaining to the main characteristics of MBE exporters and non-exporters. 

The results of these tests presented throughout the report are confirmed at the 

90% confidence interval, which means if new estimates were made using exactly 

the same procedures, the confidence intervals would contain the average of 

the estimates 90% of the time. The full results of the tests are presented in the 

technical notes in Appendix 1.

12 While data are available on the products and services MBE exported and 

separate data are available on the countries to which MBEs exported, these data 

are not connected. It’s not possible therefore to determine which products and 

services were exported to which countries. 

Data and Research Methods
Minority Exporters: Characteristics and Strategies for New Business and Expansion

3

In recent decades, global integration and the openness 

to trade have been catalysts for strong economic growth 

in many countries. U.S. exports of goods and services 

increased in 2012 to a record $2.2 trillion.13 As of 2012, 

exports also influenced the following job outlook:14

 

•	 9.8 million jobs overall;

•	 7.3 million jobs related to exports of goods; 

•	 2.5 million jobs related to service exports; and

•	 13-18 percent higher wages than national average 

were paid by export jobs.

Over 300,000 identified U.S. exporters were responsible 

for creating these jobs and for generating over $1.3 trillion 

in exports.15 Among identified exporters, small and 

medium-sized businesses (with fewer than 500 employees) 

represented over 97 percent of the total, while large 

identified companies were responsible for 66.7 percent of 

the known export value, as reported by the U.S. Census 

Bureau. The major export categories among all companies 

in 2012 are shown in Table 1.

13 Refer to the following trade fact sheet, U.S. Department of Commerce, 

International Trade Administration, “U.S. Export Fact Sheet: December 2012 

Export Statistics,” released February 8, 2013, available at http://www.trade.

gov/press/press-releases/2013/export-factsheet-february2013-020813.pdf (last 

accessed on March 15, 2015). 

14 See Johnson, Martin and Chris Rasmussen, U.S. Department of Commerce, 

International Trade Administration, Jobs Supported by Exports 2012: An 

Update, available at http://www.trade.gov/mas/ian/build/groups/public/@tg_ian/

documents/webcontent/tg_ian_004021.pdf (last accessed March 15, 2015).

15 Identified exporters are those that can be linked to specific shipments. For 

the purpose of this study, not all exporters are linked and their numbers may be 

understated.

Why Exporting Matters and How the Nation 

Promotes Exports

Category 2012 Number of Firms 2012 Value of Exports

All Exporters 301,238 $1.3 trillion

Manufacturing 74,455 $791 billion

Wholesale 100,069 $315 billion

Other/Identified 126,714 $225 billion

Source: U.S. Department of Commerce, U.S. Census Bureau, Profile of U.S. Importing and Exporting Companies, 2010- 2011.

Table 1. Major Export Categories, 2012
Minority Exporters: Characteristics and Strategies for New Business and Expansion

4

The Obama Administration and the 

National Export Initiative (NEI NEXT)

In 2010, President Barack Obama announced the National 

Export Initiative (NEI) to double exports within five years 

and create two million jobs in America.16 In 2012, U.S. 

exports set a record, reaching $2.2 trillion in value. Growth 

in exports of goods and services outpaced the growth of 

imports of goods and services in terms of both dollars and 

percentages, with exports growing by $92.6 billion or 4.4 

percent; and, exports as a share of U.S. GDP rose to 13.9 

percent.17

NEI’s trade policy and promotions initiatives have created 

equity for U.S. companies selling their goods and services 

abroad. Key program approaches include:18

•	 Enhancing trade advocacy and export promotion 

efforts, including through initiatives such as the Doing 

Business in Africa19 campaign;  

•	 Promoting the availability of export financing;

•	 Educating U.S. companies about markets opened by 

the U.S. Free Trade Agreements,20 including three that 

went into effect in 2012 in South Korea, Colombia and 

Panama; 

•	 Negotiating and concluding new trade agreements 

– such as the Trans-Pacific Partnership (TPP) and 

the Transatlantic Trade and Investment Partnership 

(TTIP); and

•	 Enforcing U.S. trade rights under international 

agreements and investigating unfair trade practices 

affecting U.S. importers and exporters. 

At the firm level, the 2010 NEI has strengthened trade 

promotion initiatives to help increase U.S. exports, 

particularly those of small and medium-sized businesses 

(SMEs). Such trade promotion initiatives entailed: 

increasing export assistance to SMEs; undertaking trade 

missions to promote exports by U.S. firms; increasing 

export credit; and strengthening export promotion services.

The initiative has since been expanded to the recently 

instituted NEI NEXT program, and this next iteration of 

the trade promotion program is poised to do even more. 

In particular, the expanded program is structured to help 

“U.S. manufacturers, farmers, workers, and innovators sell 

Made-in-America products and services world-wide to 

benefit the [national] economy.”21 Under the NEI NEXT 

program, there has been increased interagency advocacy 

support through the U.S. Department of Commerce’s 

Advocacy Center that has resulted in more than “200 

wins for U.S. companies competing for foreign market 

government tenders, including nearly $160 billion in U.S. 

export content.”22 The initiative has also led to growth in 

the number of trade missions by 20 percent and double the 

number of companies participating, resulting in $9 billion 

in exports.

Within the Federal Government, the Office of the U.S. 

Trade Representative has principal responsibility for 

administering trade agreements that involve monitoring 

trading partners’ implementation of various business 

agreements, enforcing America’s rights under those 

agreements, and negotiating and signing trade agreements 

that advance the President’s trade policy. While the U.S. 

has agreements with many countries, the type of trade 

relationship that offers the highest level of benefit to the 

respective parties is the Free Trade Agreement (FTA).23 The 

positive results achieved through FTAs have encouraged 

the Obama Administration to engage in a number of 

region-specific trade promotion initiatives to promote the 

exports of U.S. companies that will be discussed in the next 

section. 

 

16 International Trade Administration, “National Export Initiative Fact Sheet”, 

available at http://trade.gov/nei/nei-fact-sheet.asp (last accessed March 15, 2015).

17 U.S. Department of Commerce, “Fact Sheet: National Export Initiative” (May 

24, 2013). Available at http://www.commerce.gov/news/fact-sheets/2013/05/24/

fact-sheet-national-export-initiative (last accessed March 15, 2015).

18 Ibid.

19 See Trade.gov, “Doing Business in Africa,” (September 28, 2015). Available at 

http://trade.gov/dbia/ (last accessed March 15, 2015).

20 Office of the U.S. Trade Representative (USTR), “Free Trade Agreements.” 

Available at http://www.ustr.gov/trade-agreements/free-trade-agreements (last 

accessed March 15, 2015).

21 See The International Trade Administration, Economics and Statistics 

Administration, The Role of Exports in the U.S. Economy, (May 13, 2014). 

22 Ibid.

23 See Trade.Gov, “Free Trade Agreements,” (January 1, 2015). Available at http://

trade.gov/fta/ (last accessed March 15, 2015). Such FTAs have played a significant 

role in helping to meet NEI NEXT goals of increasing exports. Collectively, 

exports to the 20 FTA countries represented nearly half of all U.S. goods exported 

in 2012. Collectively, exports to the 20 FTA countries represented nearly half of all 

U.S. goods exported in 2012.
Minority Exporters: Characteristics and Strategies for New Business and Expansion

5

Region-Specific Special Trade 

Promotion Initiatives of the Obama 

Administration

Trade policy and trade promotion go hand in hand. On 

the trade promotion side, examples of some of the ongoing 

strategic initiatives include:

Africa: According to President Obama, sub-Saharan 

Africa could be the world’s next major economic success 

story.24 In June 2012, the U.S. Strategy toward Sub-Saharan 

Africa was launched to promote economic growth, trade 

and investment in the region. A key component of the 

strategy is the Doing Business in Africa campaign that 

was launched by the U.S. Department of Commerce in 

Johannesburg, South Africa. The main objective is to 

bolster federal trade promotion and financing capabilities 

to help U.S. businesses obtain trade and investment 

opportunities. Since it’s unveiling, the U.S. Department 

of Commerce has been working alongside other federal 

agencies to encourage U.S. companies, especially SMEs 

and African diaspora-owned businesses, to trade with and 

invest in the region.

Latin America: Look South is an initiative aimed 

specifically at increasing U.S. trade with Latin American 

countries with which the U.S. has FTAs.25 It is part of the 

Commerce Department’s Open for Business Agenda that 

supports NEI NEXT by encouraging the expansion of 

export markets. MBEs are uniquely positioned to benefit 

from the Look South effort, which will help them expand to 

new export markets and generate more revenue. 

Asia: The Trans Pacific Partnership (TPP) is the 

cornerstone of the Obama Administration’s economic 

policy in the Asia-Pacific.26 The large and growing markets 

of the Asia-Pacific are already key destinations for U.S. 

manufactured goods, agricultural products, and services 

suppliers. The TPP will expand trade and investment in the 

Asia-Pacific region.27 SMEs alone exported $247 billion to 

the Asia-Pacific in 2011.28

Europe: The Transatlantic Trade and Investment 

Partnership (TTIP)29 is a key initiative that is being 

negotiated between the European Union (EU) and the 

U.S. that aims to remove trade barriers in a wide range 

of economic sectors. By making it easier to buy and sell 

goods and services between the EU and the U.S. and cut 

tariffs across all sectors, the EU and the U.S. seek to tackle 

traditional barriers that limit exchange. TTIP negotiations 

also look at opening both markets for services, investment, 

and public procurement. 

Overall, the NEI NEXT initiative has had a positive impact 

on U.S. exports. Understanding the growth potential of 

MBE exporters can also ensure that future initiatives are 

crafted to target these types of firms. The next section 

discusses some of the characteristics of MBE exporters and 

makes a case for paying greater attention to this subset of 

SME exporters in the future.

24 Minority Business Development Agency, “Doing Business in Africa Campaign 

Fact Sheet,” (November 28, 2012). Available at http://www.mbda.gov/node/2137 

(last accessed March 15, 2015).

25 Minority Business Development Agency, “Look South: Increasing U.S. Trade 

with Latin America,” (January 13, 2014). Available at http://www.mbda.gov/

blogger/export-expansion/look-south-increasing-us-trade-latin-america?page=2 

(last accessed March 15, 2015).

26 Office of the U.S. Trade Representative, “The United States in the TransPacific Partnership,” (November 2011). Available at https://ustr.gov/about-us/

policy-offices/press-office/fact-sheets/2011/november/united-states-trans-pacificpartnership (last accessed March 15, 2015).

27 As a group, TPP countries are the largest goods and services export market 

of the U.S. U.S. goods exports to the broader Asia-Pacific totaled $942 billion in 

2012, representing 61 percent of total U.S. goods exports. U.S. private services 

exports totaled $226 billion in 2011 (latest data available), representing 38 percent 

of total U.S. private services exports to the world.

28 The Small Business Exporters Association of the United States, Trans-Pacific 

Partnership (TPP), (October, 2014). Available at http://www.sbea.org/wpcontent/uploads/2014/10/TPP-Issue-Brief.pdf (last accessed March 15, 2015). 

29 Office of the U.S. Trade Representative, “The Transatlantic Trade and 

Investment Partnership.” Available at https://ustr.gov/ttip (last accessed March 15, 

2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

6

In composite, MBEs are comprised of a number of ethnic 

subgroups that are presumed to have ethnic and cultural 

characteristics that could be leveraged to create export 

opportunities. In this section, a comprehensive literature 

review provides insights into how some of these efforts 

may contribute to or stifle the ability of MBEs to export to 

key markets, especially those that are emerging, including 

Africa, Asia, and Latin America.

Among the unique characteristics of MBEs that are cited 

in the literature, four are often discussed: entrepreneurial 

orientation, country of origin linkages, racial and ethnic 

ties, and cultural ties. 

Entrepreneurial Orientation

Entrepreneurial orientation refers to whether internal 

factors predispose individual firm owners to be less riskaverse when entering global markets. The notion of export 

readiness, in this context, has two dimensions: readiness in 

terms of technical capacity and “emotional” readiness. 

Accordingly, increasing attention is being paid to analyzing 

the entrepreneurial orientation of immigrants and the 

foreign-born as their numbers continue to increase in the 

United States. Immigrants refer to individuals who are in 

various stages of the formal immigration process as defined 

and controlled by the U.S. Department of Homeland 

Security. While in the literature, the terms immigrants 

and foreign-born are used interchangeably, technically, 

the former only refers to those in a formal or completed 

immigration process. The foreign-born as a classification 

may or may not include immigrants (in U.S. legal 

immigration terms).30

In explaining how country of origin ties work, researchers 

Patel and D’Souza noted that immigrants and the foreignborn are assumed to be well situated with their knowledge 

of two societies, and that their strong ties to their countries 

lower the transaction costs for prospective exporters.31 

Such transactions may have a pro-trade effect on exports 

between their host and origin countries and on the 

propensity of immigrants to export.

Regarding immigrant-owned businesses, the 2010 

American Community Survey found that they employed 

4.7 million and generated receipts of $776 million.32 The 

2010 Current Population Survey, a joint effort of the Bureau 

of Labor Statistics and the U.S. Census Bureau, also recently 

studied business ownership patterns of immigrants.33

These data combined with the 2007 SBO provide a rich 

foundation for researchers, including the Migration Policy 

Institute, Brookings Institute, researchers commissioned by 

the U.S. Small Business Administration’s (SBA) Advocacy 

Office, and others to conduct research on the characteristics 

of immigrant business owners. 

In 2012, the SBA Advocacy Office completed a landmark 

study, Immigrant Entrepreneurs and Small Business Owners, 

and their Access to Capital that concluded that business 

ownership rates are higher for immigrants than nonimmigrants, with 10.5 percent of the immigrant work 

Unique Characteristics and Challenges 

in MBE Exporting

30 For statistical reporting purposes, the foreign born is a larger set than 

immigrants. They make up one in eight of U.S. residents. See also U.S. Census 

Bureau, “The Size, Place of Birth, and Geographic Distribution of the ForeignBorn Population in the United States: 1960 to 2010,” (October 2012). Available 

at http://www.census.gov/population/foreign/files/WorkingPaper96.pdf (last 

accessed March 15, 2015).

31 Pankaj Patel, and Rodney D’Souza, 2009. “Leveraging Entrepreneurial 

Orientation to enhance SME Export Performance.” Under Contract number SBA 

HQ-08-M-320. An Office of Advocacy Working Paper. Washington, DC: U.S. 

Small Business Administration (SBA). Available at https://www.sba.gov/sites/

default/files/advocacy/Leveraging%20Entrepreneurial%20Orientation%20to%20

Enhance%20SME%20Export%20Performance%202.pdf (last accessed March 15, 

2015).

32 See U.S. Census Bureau, “American Community Survey: 2010.” Available at 

http://www.census.gov/acs/www/about_the_survey/american_community_

survey_and_2010_census/ (last accessed March 15, 2015). See also Fiscal Policy 

Institute, “Immigrant Small Business Owners June 2012.” Available at http://

www.fiscalpolicy.org/immigrant-small-business-owners-FPI-20120614.pdf (last 

accessed March 15, 2015).

33 Bureau of Labor Statistics and the U.S. Census Bureau, “Current Population 

Survey.” Available at http: https://www.census.gov/cps/ (last accessed March 5, 

2015). See also “Immigrant Entrepreneurs and Small Business Owners, and their 

Access to Financial Capital,” (May, 2012). Available at https://www.sba.gov/sites/

default/files/rs396tot.pdf (last accessed March 15, 2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

7

force owning a business compared with 9.3 percent of the 

non-immigrant work force.34 The study also found that 

business formation rates are also higher among immigrants 

than non-immigrants at 0.62 percent per month (or 620 

out of 100,000) compared to the non-immigrant rate of 

0.28 percent (or 280 of 100,000). According to the study, 

immigrants are more likely to export their goods and 

services than are non-immigrant owned businesses; 7.1 

percent export compared to only 4.4 percent of nonimmigrant firms. Along these lines, immigrant-owned 

businesses are also more likely to have higher shares of 

exports.35

The Fiscal Policy Institute’s Immigrant Research Initiative 

found in 2012 that immigrants from some countries—

including some with relatively small numbers in the overall 

population—were disproportionately likely to be business 

owners.36 Their data also found that immigrants from the 

Middle East, Asia, and Southern Europe were particularly 

inclined toward business ownership. Immigrants from 

Greece, for example, were a tiny fraction of all immigrants 

are in the labor force, but 16 percent of Greek immigrants 

in the labor force were business owners—the highest share 

of any group. Immigrants born in Israel/Palestine37 were the 

group with the second highest rate of business ownership, 

followed by Syria, Iran, Lebanon, Jordan, Italy, Korea, South 

Africa, Ireland, Iraq, Pakistan, and Turkey.38

What these studies suggest is that immigrant and foreignborn, minority subgroups are dynamic, entrepreneurially 

oriented, and represent a growing share of the U.S. and 

business populations. These factors, among others, 

potentially position them to play an even greater role in 

contributing to MBE exports. However, non-immigrantowned MBEs may also possess the same entrepreneurial 

traits. This is explored later in the case studies. 

Country of Origin Linkages

Country of origin has influenced some MBEs to export, 

given the nature of their relationships with their home 

countries. Immigrant networks are believed to be important 

intermediaries that can mitigate informal barriers in homecountry markets by providing information about demand, 

languages, business practices and laws, as well as instilling 

confidence to facilitate international trade. By reducing the 

cost of searching across national borders and serving as a 

means of enforcing contracts, immigrant owners increase 

the likelihood of a match between a buyer and a seller 

that often results in a completed transaction. Immigrant 

networks are also thought to lower the transaction costs of 

international trade by providing information about trade 

possibilities and aiding the enforcement of contracts that is 

a theme explored in the report’s case studies.

In her research study, author Behncke found that access to 

information can be quite significant when a firm enters a 

new market. Immigrants, for example, are more familiar 

with the legal system and culture of their home country and 

speak the local language.39 They also have better knowledge 

of the preferences of their home countries and can thus 

better identify market opportunities.40

Ethnic networks can influence trade through a transplanted 

home-bias effect or preference/demand channel affecting 

both supply and demand. Importantly, immigrants and the 

foreign born may introduce natives from the host country 

to their home country products that increase export 

opportunities for suppliers.41 

34 Fairlie, Robert, and Alicia Robb. 2010. Disparities in Capital Access between 

Minority and Nonminority-Owned Businesses: The Troubling Reality of Capital 

Limitations Faced by MBEs. Washington, DC: U.S. Department of Commerce, 

Minority Business Development Agency. Available at http://people.ucsc.

edu/~rfairlie/presentations/Disparities%20in%20Capital%20Access%20

Report%202010.pdf (last accessed March 15, 2015).

35 Ibid.

36 Fiscal Policy Institute, “Immigrant Small Business Owners June 2012.” 

Available at http://www.fiscalpolicy.org/immigrant-small-business-ownersFPI-20120614.pdf (last accessed March 15, 2015).

37 The U.S. Census does not disaggregate the two categories.

38 The source of the data for the Fiscal Policy Institute’s report is the 2010 ACS.

39 Behncke, Nadine. 2014. The Structure of Ethnic Networks and Exports: 

Evidence from Germany. Discussion Paper No. 198. Center for European and 

Economic Development Research. Germany: University of Goettingen. Available 

at http://econstor.eu/bitstream/10419/94185/1/781226929.pdf (last accessed 

March 15, 2015).

40 Ibid.

41 Ibid.
Minority Exporters: Characteristics and Strategies for New Business and Expansion

8

Racial and Ethnic Ties

Although certain groups, such as African Americans, 

may not possess direct country of origin linkages, they 

may nevertheless have the racial and ethnic ties to other 

Black populations overseas, such as in Brazil, Colombia, 

and the Caribbean, that may be useful in forming trade 

relationships. Cultural affinities by way of historical origins 

make it easier to connect to emerging markets within the 

diaspora even without such direct ties. Many overseas Black 

populations have been typically marginalized, especially 

in commerce. Recent efforts have been made by foreign 

governments to enfranchise these groups in various ways, 

including through preferential access to government 

procurements. The question still remains, however, if 

African American-owned firms can leverage racial status to 

facilitate exporting.42 

New racial inclusion initiatives in countries such as 

Australia, South Africa, Brazil, and Colombia present 

opportunities to explore the phenomenon further. When 

these initiatives include preferential access to government 

procurements, it might be advantageous for MBEs to 

consider jointly bidding on the opportunity with other 

firms to strengthen their bids. 

The case of the South African Black Economic 

Empowerment, or formally the Broad Based Black 

Economic Empowerment Act of the South African 

Government, is one that is thought to provide such an 

incentive.43 Colombia’s Action Plan on Racial and Ethnic 

Equality, an initiative of the Colombian Government 

in partnership with the U.S., is another example of an 

inclusion program that may ultimately create business 

opportunities between the Afro-Colombia and African 

American business communities.44 It is still not clear 

whether this type of initiative or others have led to 

partnering between global Black-owned firms and U.S. 

African American-owned firms.

The U.S.-Brazil Joint Action Plan to Eliminate Racial and 

Ethnic Discrimination and Promote Equality is another 

high-level bilateral initiative led by the U.S. Department of 

State that seeks to foster greater involvement of the AfroBrazilian community in the vast economic opportunities 

that exist throughout the country and in relation to the 

2016 Olympics. This type of opportunity might lend itself 

to inter-firm collaborations.45 

Later in the report, the case study of African American, 

MBE exporter Don Williams is shared to demonstrate 

how businesses without strong country of origins linkages 

can, in fact, leverage their understanding of international 

markets, and use of external exporting resources to build 

effective and sustainable business models.

Cultural Heritage

Understanding how cultural assets are leveraged can also 

potentially increase MBE exporting. Cultural assets can 

be material, immaterial, emotional and even spiritual. 

In the case of Native Americans, for example, the 2012 

Census reported that 1.2 percent of the U.S. population 

was Native Indian or Alaska Native.46 To foster the overall 

economic development of Native peoples, an Office of 

Native American Business Development (ONABD) was 

established within the U.S. Department of Commerce, and 

housed at MBDA to provide direct services to these groups. 

In so doing, recognition was given to the unique potential 

of leveraging Native American cultural assets to create 

exports with the following examples:

Tourism to Native American Communities: When 

foreigners visit and spend money in the U.S., the money 

they spend is considered an export. In 2012, foreigners 

spent a record $168 billion while traveling domestically. 

Among the over 66 million visitors to the U.S. in 2012, over 

1.4 million visited Native American communities. These 

tourists were primarily from China, the U.K., Germany, 

42 This hypothesis has not been explored in existing literature. Success of these 

populations can be in part due to effective business acumen that compares with 

other similar-sized SMEs.

43 Black economic empowerment is not affirmative action, although employment 

equity forms part of it. It is essentially a growth strategy, targeting the South 

African economy’s weakest point: inequality. See also “Black Economic 

Empowerment”. Available at http://www.southafrica.info/business/trends/

empowerment/bee.htm#ixzz2zdu5bcYC (last accessed March 15, 2015).

44 See press release “Colombia and United States to Hold First Meeting on Racial 

and Ethnic Equality Action Plan,” (June 10, 2013). Available at http://www.state.

gov/r/pa/prs/ps/2013/06/210475.htm (last accessed March 15, 2015).

45 It is also noted that former MBDA National Director David Hinson traveled 

to Brazil to develop a framework for collaboration between the Department of 

Commerce and the Government of Brazil that is specifically designed to lead to 

greater market access for MBDA clients and export-ready firms. 

46 Bureau of Labor Statistics and the U.S. Census Bureau, Current Population 

Survey, “State and County QuickFacts.” Available at http://quickfacts.census.gov/

qfd/states/00000.html (last accessed March 15, 2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

9

France, South Korea, and Australia. The number of visitors 

from these countries is steadily increasing. The states where 

the foreign visitors are visiting Native communities include: 

California (45%); Nevada (38%); New York (32%); Arizona 

(19%); Florida (13%); Utah (11%); and Hawaii (10%). In 

these cases, Native American communities have formed a 

basis for linkages with these countries of visitor origins. 

Specialty and Branded Products: In addition to 

attracting foreign visitors, Native American communities 

also produce specialty craft products that are in high 

demand by visitors and international buyers.

The foregoing examples demonstrate how cultural heritage 

can be leveraged as an asset to enhance export potential, 

and suggest that Native Americans, in particular, have 

distinct qualities to enhance trade engagement. 

Barriers to Exporting

Despite the prospect for business development, why aren’t 

more firms exporting? The simple answer to the question 

is that the fixed and search costs associated with exporting 

are high.47 This is perhaps why, in part, the overall number 

of U.S. exporters is small relative to the total number of U.S. 

based businesses. 

As is similarly the case for the overall universe of U.S. 

businesses, the share of MBE firms that exports is low, as 

reported in the 2007 SBO: 

•	 Minority-owned firms accounted for a 

disproportionately small share of exporters relative 

to their numbers, but exports accounted for a larger 

percentage of the receipts of minority-owned exporters 

than for nonminority-owned exporters.

•	 In 2007, minority-owned firms (5.8 million) made 

up 21.9 percent of all classifiable firms (26.3 million), 

but the 28,531 minority-owned exporters accounted 

for only 17.5 percent of classifiable exporting firms 

(163,419). 

•	 In 2007, exports accounted for 14.4 percent of total 

receipts ($212.3 billion) of minority-owned exporters 

compared with 5.4 percent of total receipts ($2.5 

trillion) for nonminority-owned exporters.

The low participation rate of MBEs in exporting may 

be attributable, in part, to their inability to overcome 

some of the impediments to exporting that may fall 

disproportionately on them as smaller businesses. 

Impediments to exporting that obstruct a firm’s capacity 

to launch, carry out, expand, or sustain activities in 

international markets can be categorized in two groups: 

internal impediments, resources and capabilities within the 

control of the firm and external impediments that include 

environmental factors outside the control of a firm. 

Authors Patel and D’Souza categorize exporting 

impediments into two groups: functional and marketing 

in their research.48 The former includes both limits on 

reconfiguring an SME’s internal processes to meet the 

demands of export markets and impediments related to 

human capital, and resources and capabilities that restrict 

the formulation and implementation of strategies necessary 

for export success. Marketing impediments, by contrast, 

affect a SME’s capacity to price, distribute, and promote a 

product or service in a foreign market, and are additional 

barriers to exporting.

Insights into how such factors impede entry and expansion 

into the global marketplace can be found in the following 

study, The Impact of Credit Availability on Small Business 

Exporters.

49 The report’s key findings underscore the impact 

of the following barriers on exporting: credit and financing, 

trade barriers, and lack of knowledge.

For MBEs, lack of credit and finance barriers impact 

exporters in two significant ways. First, exporters rely 

on credit to finance their working capital to a greater 

extent than do firms producing solely for their domestic 

market, in large part, because of the longer transportation 

time associated with exported goods. Cross-border 

47 See International Trade Administration. Letter from The Presidents Export 

Council: “Analysis suggests that, due to its “fixed-cost” nature, the cost burden 

of regulations can be disproportionately greater on SMEs vis-a-vis the financial 

impact on larger firms, as smaller firms tend to have less capacity to navigate 

through the complexities of regulatory and bureaucratic networks.” (March 11, 

2011). Available at http://trade.gov/pec/docs/PEC_SME_Trade_Capacity_Export_

Assistance_Letter_031111.pdf (last accessed March 15, 2015).

48 See Patel, Pankaj, and Rodney D’Souza. 2009.

49 Peek, Joe. 2013. The Impact of Credit Availability on Small Business Exporters. 

Under contract number SBAHQ-11-M-0206. Washington, DC: U.S. Small 

Business Administration. Available at https://www.sba.gov/sites/default/files/files/

rs404tot%283%29.pdf (last accessed March 15, 2015)
Minority Exporters: Characteristics and Strategies for New Business and Expansion

10

transactions are also deemed to be more risky, so that 

payment guarantees provided by banks and other financial 

intermediaries play an important role in assuring both 

delivery of purchased goods to the importer, and payment 

to the exporter. The inability to access financing, therefore, 

suggests a greater adverse impact on exporting firms than 

on firms producing goods for domestic consumption. Small 

businesses also typically rely on bank credit more than large 

firms.50

An estimated 80 percent to 90 percent of world trade relies 

on finance (e.g., trade credit and insurance/guarantees) 

– mostly of a short-term nature. International supply

chain arrangements have globalized trade finance along 

with production. Sophisticated supply chain financing 

operations have also become crucial to trade. Despite 

the importance of export financing, small firms, and 

particularly MBEs, have difficulty accessing it despite access 

to working capital programs associated with the ExportImport Bank51 and the SBA.52 Multiple other reasons 

complicate MBE financing, including a lack of knowledge 

about the existence of these mechanisms, and the absence 

of willingness and capacity of these firms to meet the 

lending standards. This issue is examined further in the 

case studies presented later in the report.

The U.S. International Trade Commission’s seminal study, 

Small and Medium-Sized Enterprises: Characteristics 

and Performance provides evidence that both tariffs and 

nontariff measures (NTMs) are relatively more burdensome 

to SMEs than to larger firms.53 In addition to NTMs, other 

business impediments such as transportation costs are 

also constraining. Trade barriers that include licensing, 

residency requirements, and commercial presence 

requirements, present especially burdensome challenges for 

services providers that export.54 Some of these barriers are 

internal to the firm, while others are associated with a lack 

of entrepreneurial orientation and potentially due to a lack 

of technical capacity.

Limited firm resources and international contacts, as 

well as lack of requisite managerial knowledge about 

internationalization, are critical financing constraints 

to exporters. Research that explores SME exporting 

constraints has also found that such lack of knowledge is 

considered to be one of a host of internal impediments 

that are idiosyncratic to a firm. Additional internal 

impediments might include a lack of organizational 

resources and competent personnel, an inability to meet 

quality standards, a lack of financial backing, insufficient 

information about a foreign market, an inability to meet 

design specifications, and an unfavorable image of foreign 

markets. 

As discussed in Family Firms Venturing into International 

Markets, competing across national borders is more 

complex and resource-consuming than operating in 

the home market.55 Activities such as researching 

foreign markets, making products and service suitable 

for international customers, finding and contracting 

international buyers, moving goods and services 

across large distances, and making sure that products 

are managed properly on the way to their users, pose 

significant challenges to firms, and especially to small firms. 

Furthermore, firms transitioning to international markets 

face the liability of perceived “foreignness,” stemming from 

exchange risks of operating businesses in foreign countries, 

local authorities’ discrimination against foreign firms, and 

unfamiliarity with local business conditions that diminishes 

only as they gain more knowledge. Some MBE exporters, 

however, have found ways to overcome these barriers and 

some of the characteristics instrumental to this progression 

are described in the next section.

All of these characteristics serve to help or hinder the 

establishment or expansion of MBE exporting. And, 

the experiences by MBEs considerably vary by certain 

characteristics that are explained in the next section.

50 Ibid.

51 The Export-Import Bank (“Ex-Im Bank”) of the United States is the official 

export credit agency of the U.S. whose mission is to ensure that domestic 

companies have access to the financing. The Ex-Im Bank does not compete with 

private financing. 

52 Ibid.

53 U.S. International Trade Commission. 2010. Small and Medium-Sized 

Enterprises: Characteristics and Performance. Investigation No(s). 332-508, 509, and 

510. Washington, DC: U.S. International Trade Commission. Available at http://

www.usitc.gov/publications/332/pub4189.pdf (last accessed March 15, 2015).

54 Ibid.

55 Naldi, Lucia, and Mattias Nordqvist. 2008. Family Firms Venturing into 

International Markets: A Resource Dependence Perspective. Washington, DC: U.S. 

Small Business Administration. Available at https://www.sba.gov/sites/default/

files/Family%20Firms%20Venturing%20into%20International%20Markets%20

A%20Resource%20Dependence%20Perspective.pdf (last accessed March 15, 

2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

11

Table 2. Comparisons of MBE Exporter and Non-Exporter Performance for Hispanic-Owned Firms, 

 2007

Indicator

Minority

Exporter

Minority

Non-Exporter

Hispanic

Exporter

Hispanic

Non-Exporter

Avg. Annual Receipts $7.4 million $141, 776 $7.2 million $124,418

Employees 21 7 19 7

Productivity (receipts 

per employee) $407,592 $122,545 $433,632 $119,869

Source: U.S. Census Bureau’s Ownership Characteristics of Classifiable U.S. Exporting Firms: 2007 Survey of Business Owners (SBO) Special Report.

In 2007, minority-owned firms exported over $30 billion 

in goods and services to 163 countries.57 Data on three key 

characteristics of MBE exporters reported by the 2007 SBO 

include: 

Size: Minority-owned exporting firms were larger than 

their non-exporting minority-owned counterparts in 

terms of receipt size and employment. Average receipts for 

minority-owned exporting firms were $7.4 million; while 

for minority-owned non-exporting firms, $141,776.

Employees: The average number of employees for 

minority-owned exporting employer firms was 21; the 

comparable number for minority-owned non-exporting 

employer firms was seven.

Productivity: Average productivity for minority-owned 

employer exporters (i.e., receipts per employee) was 

$407,592; the comparable calculation for minority-owned 

employer non-exporters was $122,545.

Among the subgroups within MBEs (Asian- and Hispanicowned firms), U.S. Census data also found the following for 

Hispanic-owned exporting firms along the same variables:

Size: Average receipts for Hispanic-owned exporting firms 

were $7.24 million compared with $124,418 for Hispanicowned non-exporting firms.

Employees: The average number of employees for 

Hispanic-owned exporting employer firms was 19; the 

comparable number for Hispanic-owned non-exporting 

employer firms was seven.

Productivity: Average productivity for Hispanic-owned 

employer exporters (i.e., receipts per employee) was 

$443,632; the comparable calculation for Hispanic-owned 

employer non-exporters was $119,869.

Table 2 illustrates the comparison of the foregoing 

characteristics data for exporting and non-exporting 

minority and Hispanic firms:

56 Statistics from sample surveys are subject to sampling and non-sampling error. 

All comparisons made in the reports have been tested and found to be statistically 

significant at the 90 percent confidence level, unless otherwise noted. Please 

consult the appendix for specific margins of error. For more information, see 

U.S. Census Bureau American Community Survey reference documentation on 

Instructions for Applying Statistical Testing at http://www.census.gov/acs/www/

data_documentation/documentation_main/ (last accessed on March 15, 2015).

57 U.S. Census Bureau, Special Tabulation of 2007 SBA data for MBDA, January 

2014. 

A Profile of the Characteristics of MBE 

Exporters56
Minority Exporters: Characteristics and Strategies for New Business and Expansion

12

MBE Export Global Markets 

While historical data about the countries to which MBEs export is not available, the 2007 SBO captured data on the 

countries to which MBEs exported. Based on this data, the top 10 markets for MBE exports in 2007 are shown in Table 3. 

Table 3. Top 10 Destinations in Value for MBE Exports, 2007

Rank Country

MBE Exports 

($1000)

Nonminority

Exports ($1000)

All Classifiable 

($1000)

Publicly Held and Other 

Unclassifiable Firms ($1000)

1 China $4,563,771 $6,997,924 $11,895,068 $47,397,998

2 Mexico $4,061,208 $11,172,924 $15,317,201 $96,007,879

3 Japan $2,413,794 $4,916,515 $7,357,350 $49,642,358

4 S. Korea $1,977,615 $3,115,925 $4,897,952 $25,254,822

5 Canada $1,806,260 $30,758,901 $32,693,495 $151,590,940

6 Venezuela $1,573,409 $989,016 $2,571,380 $6,207,143

7 Guatemala $1,228,012 $500,912 $1,732,652 $2,148,002

8 Hong Kong $1,048,349 $4,306,241 $5,409,371 $11,681,339

9 India $980,414 $1,811,278 $2,808,643 $13,105,929

10 Taiwan $876,699 $2,290,371 $3,179,353 $20,903,892

Source: U.S. Census Bureau, Special Tabulation of 2007 SBO Data for MBDA, January 2014. Note: Non-MBE exporters are not included in data 

analysis. 

As shown in Table 3, many of the top markets for minority exports are the same as for nonminority exporters. However, 

the relative priority of certain markets for MBEs may be different due to the positively disruptive factor of country of origin 

linkages they possess that influence their demand and supply. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

13

Top MBE Export Products 

Table 4 provides a single year snapshot for some of the selected key export products of MBEs in 2007. Data are not 

available to indicate the countries to which MBEs exported their products. 

Table 4. Select Export Products and Receipts for MBEs Compared to All Firms, 2007

Product Categories

Export Receipts by Minority Firms, 2007 ($1,000)

Minority 

Firms Export 

Receipts 

($1,000)

All Firms 

Export Receipts 

($1,000)

Minority 

Receipts 

as 

Percent 

of All 

Hispanic Black Asian Receipts

American 

Indian and 

Alaska 

Native

Native 

Hawaiian 

and Other 

Pacific 

Islander

Plastic and Articles Thereof 207,980 12,554 1,401,836 1,228 6,945 1,630,543 40,975,939 3.98

Iron and Steel 71,409 8,857 979,406 82 0 1,059,754 13,933,363 7.61

Articles of Iron or Steel 180,657 19,845 279,758 25,197 0 505,457 11,675,016 4.33

Nuclear Reactors, Boilers, 

Machinery Etc.; Parts 2,801,255 108,390 3,009,467 55,000 3,007 5,977,119 171,755,371 3.48

Electric Machinery, etc; Sound 

Equip; TV Equip; Parts 1,246,150 60,763 2,520,538 7,700 58,344 3,893,495 127,884,133 3.04

Vehicles, Except Railway or 

Tramway, and Parts, etc. 547,851 134,027 629,534 2,867 4,779 1,319,058 91,927,611 1.43

Aircraft, Spacecraft, and Parts 

Thereof 141,922 0 1,179,586 3,114 0 1,324,622 71,337,569 1.86

Optic, Photo, etc., Medic or 

Surgical Instruments, etc. 503,694 27,789 912,649 6,761 3,043 1,453,936 57,794,110 2.52

Essential Oils, etc., Perfumery, 

Cosmetic, etc., Preps 70,301 27,101 411,997 0 0 509,399 5,938,411 8.58

Natural Pearls, Precious 

Stones, Precious Metals, Coins 52354 0 1,362,393 1,136 0 1,415,883 33,127,492 4.27

Sub-Total 5,823,573 399,326 12,687,164 103,085 76,118 19,089,266 626,349,015 3.05

All Products 9,473,890 640,978 19,731,130 119,913 84,582 30,620,189 962,628,296 3.18

Sub-total as a Percent of all 

Products Receipts 61.5 62.3 64.3 86.0 90.0 62.3 65.1 0

Source: Extracted from Special Census tabulation for MBDA of 2007 SBO Exports by Product. Note: See https://www.census.gov/econ/sbo/methodology.

html to understand the columns where the data has been suppressed at “0.”
Minority Exporters: Characteristics and Strategies for New Business and Expansion

14

Other Key Characteristics of MBE Export Markets and Products

The 2007 SBO found that exports comprise a larger share of receipts for MBE exporting as compared to nonexporting MBEs. Table 5 details the breakdown by minority subgroup.

Table 5. Key Characteristics of All Exporting Firms with and without Employees by Race and Minority 

Status, 2007

Detailed Ethnicity

Firms 

(number)

Receipts 

($1,000)

Average 

Receipts 

($1,000)

Exports 

($1,000)

Average 

Exports 

($1,000)

Percent of 

Receipts from 

Exports (%)

All Firms 198,081 17,363,250,704 87,657 962,628,296 4,860 5.5

Hispanic 9,868 70,670,842 7,162 9,473,890 960 13.4

White 144,420 2,607,323,931 18,054 148,074,838 1,025 5.7

Black or African American 1,566 12,656,230 8,082 640,978 409 5.1

American Indian and 

Alaska Native 433 4,201,687 9,704 119,913 277 2.9

Asian 16,451 123,150,886 7,486 19,731,130 1,199 16.0

Native Hawaiian and Other 

Pacific Islander 60 527,364 8,789 84,582 1,410 16.0

Some Other Race 698 3,008,220 4,310 964,253 1,381 32.1

Minority 28,531 212,329,874 7,442 30,620,189 1,073 14.4

Equally Minority/

Nonminority

2,558 13,227,933 5,171 1,697,936 664 12.8

Nonminority 132,330 2,526,765,686 19,094 137,414,794 1,038 5.4

All Classifiable Firms 163,419 2,752,323,493 16,842 169,732,919 1,039 6.2

Publicly Held and Other 

Unclassifiable Firms 34,662 14,610,927,211 421,526 792,895,376 22,875 5.4

Source: Compiled from U.S. Census Bureau, 2007 Survey of Business Owners and 2007-2008: Profile of U.S. Exporting Companies.

Productivity, Employment, and Export Receipts of MBE Exporters vs. NonExporting MBEs

Results of confidence interval testing indicate a significant difference between exporting MBEs and non-exporting MBEs 

in terms of productivity, with the average productivity of exporting MBEs being almost three times that of non-exporting 

MBEs, as shown in Table 6. 

58 This assumption is based on the results of confidence interval testing.

58
Minority Exporters: Characteristics and Strategies for New Business and Expansion

15

Table 6. Exporting MBE Productivity vs. Productivity of Non-Exporting MBEs, 2007

Type of MBE Firm

Average Productivity

($1,000)

Minority-owned Firms with Exports 408

Minority-owned Firms without Exports 123

Source: U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: Relative Standard Errors (RSEs) are included in 

Appendix 1.

The difference in the number of employees between exporting and non-exporting firms is also significant (See Table 

7). Generally, MBE exporting firms tend to have almost triple the amount of employees than non-exporting MBE firms. 

Asian-owned export firms were found to have on average three times the number of employees than non-exporting 

Asian-owned firms. Hispanic-owned exporting firms had 19 employees on average compared to seven for non-exporting 

Hispanic-owned firms. Incredibly, African American-owned exporting firms have over four times as many employees on 

average than non-exporting African American firms. Appendix 1 includes data on employment by minority subgroups.

Table 7. Employees of MBE Exporters vs. Non-Exporting MBEs, 2007

Type of MBE Firm Average Employment

MBEs with Exports 21

MBEs without Exports 7

Source: Data U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: Relative Standard Errors (RSEs) are 

included in Appendix 1.

The receipts from exports for MBEs were almost three times the amount that they were for nonminority exporters as 

shown in Table 8. A breakdown by minority subgroups is in Appendix 1.

Table 8. MBE Exporter Receipts vs. Nonminority Exporter Receipts, 2007

Type of MBE Firm

Export Receipts as a 

Percentage of Total Receipts

Minority-owned Firms with Exports 14

Nonminority Firms with Exports 5.4

Source: U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: RSEs are included in Appendix 1.

Based on the foregoing, it can be reliably stated that, at the firm level, MBEs have more positive outcomes in terms of the 

three main export-characteristics: size, productivity, and receipts.
Minority Exporters: Characteristics and Strategies for New Business and Expansion

16

Analysis of Country of Origin Social Network Effects of MBE Exporters

The data reveal that MBEs with ethnic ties to a country also export more to that geographic location. In this report, the 

“country of origin social network effect” was tested in the select case of Indians, Chinese, Koreans, and Mexicans. The 

results of the confidence interval testing of the data confirm that the effect exists in the following examples. 

According to the 2007 SBO, Chinese-owned firms export more to China than Asian Indian owned firms. The number of 

Chinese-owned firms that export to China is significantly higher than the number of Asian Indian-owned firms that export 

to China, as shown in Table 9. 

Table 9. Chinese MBE Exports to China vs. Asian Indian Exports to China, 2007

Number of Firms 

Exporting to China

Export Receipts

($1,000)

Chinese-owned Firms 2,286 $3,431,827,000 

Asian Indian-owned Firms 362 $416,450 

Source: U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: RSEs are included in Appendix 1.

Based on the results of confidence interval testing, the number of Asian Indian-owned firms that export to India is 

significantly greater than the number of Chinese-owned firms that export to India, as shown in Table 10. 

Table 10. Asian Indian MBE Exports to India vs. Chinese Exports to India, 2007

Number of Firms 

Exporting to India 

Export Receipts

($1,000)

Chinese-owned Firms 300 $82,903,000

Asian Indian-owned Firms 944 $545,054,000

Source: U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: RSEs are included in Appendix 1.

There is a significant difference between the numbers of Mexican-owned firms that export to Mexico compared to that of 

Chinese firms that export to Mexico. Mexican firms export at nearly double the amount, as shown in Table 11. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

17

Table 11. Mexican and Mexican American MBE Exports to Mexico compared to Chinese Exports to Mexico, 

 2007

Number of Firms 

Exporting to Mexico

Export Receipts 

($1,000)

Mexican and Mexican 

American-owned Firms 1,666 $2,195,010

Chinese-owned Firms 879 $297,253

Source: U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: RSEs are included in Appendix 1.

Hispanic-owned firms that export to Mexico do so at significantly higher rates than Asian-owned firms, as shown 

in Table 11. 

Table 12. Hispanic MBE Exports to Mexico compared to Asian Exports to Mexico, 2007

Number of Firms 

Exporting to Mexico 

Export Receipts 

($1,000)

Hispanic-owned Firms 2,585 $2,574,172

Asian-owned Firms 1,802 $1,361,996

Source: U.S. Census Bureau, 2007 Survey of Business Owners; statistical analysis by author. *Note: RSEs are included in Appendix 1.

Collectively, the analyses of MBE exporting characteristics indicate that they do indeed have distinct and unique 

advantages when exporting to countries of their ethnic heritage. The data also suggest that their advantages might rest 

heavily upon knowledge of the importers’ language and culture, social and family ties, and an ability to act as mediator 

between domestic and international interests.
Minority Exporters: Characteristics and Strategies for New Business and Expansion

18

Available Resources for MBE Exporters

Having robust information about exporting opportunities is 

critical for minority-owned firms interested in developing 

emerging and existing business models. As discussed, some 

firms have their own resources, such as country of origin 

market connections, while others depend on information 

conveyed through government channels and institutional 

facilitators. Some of the main governmental and nongovernmental resources that are available to help firms 

identify export opportunities are briefly described in this 

section. 

Federal Government 

At the federal level, agencies that are involved in trade 

promotion are members of the Trade Promotion 

Coordination Committee (TPCC).59 Among these 

agencies, the U.S. Department of Commerce and the 

Small Business Administration (SBA) have domestic 

outreach facilities where hands on advice and information 

is provided to steer clients to resources that help 

them identify specific market opportunities. The U.S. 

Department of Commerce also has an extensive network of 

overseas offices through its U.S. Commercial Service.60

U.S. Department of Commerce

Within the Commerce Department, three resources are 

particularly well positioned to provide export opportunity 

information, which include: U.S. Exporters Assistance 

Centers (USEACs), Export.Gov, and MBDA. The role of 

each are described below.

U.S. Export Assistance Centers (USEACs),

61

operated by the International Trade Administration (ITA), 

have “boots on the ground” international trade specialists 

based in more than 100 USEACs in the United States and 

Puerto Rico. These specialists provide assistance to new 

exporting firms, and to firms that want to expand into 

additional export markets and increase their share in 

existing markets. USEACs also connect U.S. companies 

with additional trade resources and provide information 

about specific trade opportunities. For more information, 

visit: https://www.sba.gov/content/us-exports-assistancecenters.

Export.Gov is an online resource that is dedicated solely 

to exporting. It is the primary resource through which 

Country Commercial Guides (CCG) are disseminated. 

CCGs are prepared annually by U.S. embassies with the 

assistance of several U.S. Government agencies, especially 

the U.S. Department of Commerce. CCGs present a 

comprehensive look at the commercial environments of 

countries using economic, political and market analysis. 

Importantly, each guide also identifies top prospects for 

U.S. products and services in each country. For more 

information, visit: http://export.gov/.

The Minority Business Development Agency 

(MBDA) has a nationwide network of business centers 

and resources to reach out and support MBE exporters. 

MBDA is also in a position within the U.S. Department of 

Commerce to steer minority firms to the resources of other 

TPCC agencies. MBDA regularly collaborates with its sister 

agency, the International Trade Administration (ITA), on 

export opportunities, and refers clients on a regular basis. 

For more information, visit: http://www.mbda.gov/.

Liaison Officers at Multilateral Development Banks 

(MDBs), an additional U.S. Department of Commerce 

agency, play an important role in helping firms identify 

export opportunities. The Department of Commerce’s 

Advocacy Center is also responsible for managing the 

agency representatives to the Multilateral Development 

Banks (MDBs).62 The purpose of having the Liaison 

Officers report to the Advocacy Center is to monitor the 

proportion of MDB tenders that are won by American 

firms, and to ensure that American firms are informed 

about procurement opportunities that arise in connection 

with the development projects financed by the MDBs. 

59 The TPCC is an interagency committee chaired by the Secretary of Commerce. 

It was established under the Export Enhancement Act of 1992 to provide a 

unifying framework to coordinate the export promotion and export financing 

activities of the U.S. government and to develop a government-wide strategic plan 

for carrying out such programs. 

60 See Trade.gov, for a list of Commercial Service offices “U.S. Commercial 

Service in Your State.” Available at http://www.trade.gov/cs/states/csinyourstate.

asp (last accessed March 15, 2014).

61 See Export.Gov, “Export Assistant Centers,” (April 3, 2009). Available at http://

export.gov/eac/index.asp (last accessed March 15, 2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

19

The Small Business Administration (SBA)

The SBA has multiple channels through which hands-on 

assistance and export leads are provided to firms. These 

include SBA District Offices where counselors provide 

assistance and information, Women Business Centers, and 

Small Business Development Centers (SBDCs). SBDCs 

provide assistance through 63 host networks branching 

out with more than 900 service delivery points throughout 

the U.S., the District of Colombia, Guam, Puerto Rico, 

American Samoa and the U.S. Virgin Islands. They are 

a key resource for providing a broad range of export 

assistance including directing firms to market opportunity 

data that are generated through TPCC agencies. For more 

information, visit: https://www.sba.gov/.

Local and State Governments 

Local and state governments are also involved in trade 

promotion and provide a broad range of exporting 

assistance including trade missions, export assistance, and 

trade leads. Enterprise Florida (EFI)63 is often cited as a 

best case practice of state-level export promotion agencies. 

It provides companies with data, offers a searchable export 

directory, and heavily markets the state’s exporters. EFI is 

a public-private partnership that operates in conjunction 

with a statewide network of economic development 

agencies, and operates 12 foreign trade offices and seven 

in-state offices. Leading trade missions is a particularly 

important role played by EFI and other state and local level 

export promotion agencies, as confirmed by case study 

participants in this report, as well. 

Government-Supported Financial 

Agencies

The Export-Import Bank (“Ex-Im Bank”) of the United 

States assists with the financing of U.S. goods and services 

to international markets. The Ex-Im Bank issues fixedrate financing to credit-worthy, international buyers in 

both the public and private sectors. It also provides loan 

guarantees for financiers of foreign buyers towards the 

purchases of U.S. capital equipment and services. Finally, 

the bank supports export credit insurance to cover the risks 

associated with buyer nonpayment and certain political 

risks (e.g., war or inconvertibility of currency). 

The Overseas Private Investment Corporation (OPIC) 

also supports U.S. private sector investment in emerging 

markets by offering capital and risk mitigation tools. 

Companies can receive direct loans and guarantees up to 

$250 million with maturities up to 20 years on projects that 

meet the minimum U.S. ownership requirement. OPIC 

also allocates political risk insurance, specialty coverage for 

investments in the renewable resources sector, and provides 

additional support for private equity investment funds.

Non-Governmental Facilitators 

Institutions that include the Chambers of Commerce, 

Business Roundtables, the National Minority Supplier 

Development Council and others, play a role in providing 

export opportunity information to their members. In 

some cases, these organizations develop their own market 

research; in others, they consolidate information from 

federal and other government sources to pass on to their 

members. Industry associations, which often undertake 

original research about global demand for the specific 

products of their members, are another key source of 

information.

Access to global markets is also pursued through the U.S. 

supply chain of Fortune 100 companies. In this program, 

MBEs can become global suppliers, facilitating their 

market entry strategy and reach into strategic developing 

economies. 

Overall, these examples offer information for MBEs 

interested in exporting. Leveraging these resources can 

prove vital to MBEs entering or developing their export 

relationships. The four case studies presented in the next 

section of this report show how some MBEs draw on some 

of these resources to facilitate their ability to export.

62 See Export.Gov, “Multilateral Development Banks,” (October, 7, 2014). 

Available at http://export.gov/advocacy/eg_main_022753.asp (last accessed March 

15, 2015). 

63 See also the following company website for Enterprise Florida. Available at 

http://www.enterpriseflorida.com/ (last accessed March 15, 2015).
Minority Exporters: Characteristics and Strategies for New Business and Expansion

20

Case Studies of Four Successful MBE 

Exporters and their Unique Characteristics

Case study respondents were selected on the basis of 

whether they exported to any of the five key NEI NEXT 

target markets of China, South Korea, Brazil, South Africa, 

and Colombia and on their willingness to participate. They 

were referred by export promotion agencies at the state 

level and by various TPCC agencies that are familiar with 

their work. This section represents a summary of notes 

from these interviews. 

Case # 1: MBE Exporter Candace 

Chen: Exporting to China and to 

Multiple Countries 

About the Owner

Candace Chen is a first generation Taiwanese American, 

and exporter to Taiwan, China, and other countries. She 

spent part of her childhood in Taiwan and later emigrated 

to the U.S. with her parents. Chen is the Founder, President 

and CEO of Power Clean 2000, a Los Angeles, CA firm 

founded in 2012. The company is a manufacturer of 

automotive service equipment and specialty chemicals. 

Chen recently established a new product, FaceLube for Men, 

which is a brand of eco-friendly men’s anti-aging skincare, 

grooming, and shaving products that are sold in domestic 

and international markets. 

Chen is a small business advocate and well respected in 

the international trade community. She is often consulted 

by press and is a sought after speaker at high-level trade/

policy events. Among her many honors, she serves as 

an appointed trade policy advisor on SMEs to the U.S. 

Secretary of Commerce and the U.S. Trade Representative. 

Chen is a “Next Generation” member of the Pacific Council 

on International Policy that is the western affiliate of the 

Council on Foreign Relations, a non-partisan foreign policy 

membership organization and think tank based in New 

York. Previously, she chaired the U.S. SME Working Group 

of the Trans-Atlantic Business Dialogue, a high level US/

European Union Trade Policy Forum between American 

and European CEOs of Fortune 1000 companies, U.S. 

cabinet-level officials, and EU commissioners. Chen has 

also been formally recognized by the U.S. Department of 

Commerce with an award for achievement in trade.

Unique MBE Exporting Characteristics:

Entrepreneurial Orientation

“Being a child of entrepreneurs taught her both about 

business operations and about the culture of business,” Chen 

stated during the interview. Chen is entrepreneurially 

oriented, and in the category of those considered to be 

“born global.” Soon after establishing her company, she 

began preparing to export. While growing up in Taiwan she 

learned about exporting by observing her parents’ export 

business. They exported home décor from Taiwan and later 

exported from the U.S. after the family emigrated there. 

Chen’s parents made sure that she and her siblings had 

active roles in the family business, which helped plant the 

seeds of entrepreneurship in her and the desire to become 

an exporter one day. 

Country of Origin Linkages 

Chen always knew that she could draw on connections with 

family and friends in conducting business in Taiwan, as 

her family maintains strong ties in Taiwan and in a number 

of Chinese-speaking countries. During the interview, she 

noted that being a first generation Taiwanese American 

had obvious advantages for her in China and Taiwan. She 

is also fluent in Mandarin Chinese which allows her to 

cull through Chinese language news media for business 

information and for information to help her prepare for 

meetings with her in-country counterparts. 

For Chen, country of origin was not guaranteed entry 

into a country’s export system. “There are limits to the 

advantages that country of origin linkages can confer,” Chen 

says. “Having connections doesn’t mean that it’s easy to do 

business in the countries in which one has a network,” she 

emphasized during the interview. 

While Chen’s networks and linkages assisted her in doing 

business in her target markets to some extent, in the 

end, they could not help her circumvent the formidable 

institutional barriers she faced in exporting to Taiwan 

and China. The bureaucracy associated with obtaining 

government licenses and certifications was so great that she 

was not initially able to export to either country. As a result, 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

21

her first exports were solely to Greece—though eventually 

she was able to break into her target markets. 

Cultural Assets

In her interview, Chen noted that her Chinese heritage is 

both a bonus and common ground that helps her build 

trust in relationships more quickly, particularly those 

Asian countries such as Korea, Japan, Thailand, Singapore, 

Vietnam, and so on, where the culture is influenced by 

Confucian traditions. Chen takes the further step of 

adjusting her dialect depending on which country she is 

working, that also helps build trust. 

“Trust,” she said, “while important in business, does not 

necessarily overshadow credentials or other factors.” Chen 

has learned that it is advisable to take time to build trust 

with local partners, especially before transferring any 

sensitive technology to them. “When business partners 

are relatives it’s easier to build trust of course,” she shared. 

Though she chose not to partner directly with relatives in 

Taiwan, her family has been helpful in referring business 

and in helping her to screen potential partners. 

While trust conferred through ethnic ties is an important 

asset, according to Chen, compatibility between the senior 

management of the partnering firms outweighs it. “Each 

firm’s credentials, financial standing, service philosophy, 

and on-line reputation is critically important and should be 

weighed,” Chen underscored during the interview. In her 

experience, if the U.S. firm is marketing a new technology 

or product concept, choosing partners with the same 

passion is far more important than a larger partner with 

little enthusiasm.

“Power Clean 2000 supplies cutting-edge American 

technology that is in demand,” Chen shared. As a 

representative for her company, how clients perceive 

her also matters. In her interview, Chen noted that as a 

woman in a male-dominated industry, she stands out and 

is differentiated as a person of Chinese heritage who speaks 

“Americanized English.”

Leveraging U.S. Government Trade Promotion 

Resources

Chen attributes having made some of her market inroads 

overseas by utilizing U.S. Government resources. Soon 

after establishing Power Clean 2000, Chen attended 

an annual automotive trade show in Las Vegas. There, 

she was approached by a trade specialist from the U.S. 

Department of Commerce who wanted to introduce the 

Agency’s exporting programs for small firms. She was 

skeptical because she equated the federal government 

with the “Internal Revenue Service,” and could not 

fathom that a branch of government existed that was 

actually pro-small business. Nevertheless, Chen kept the 

government representative’s card, and subsequently made 

an appointment. She soon took advantage of the resources 

enumerated. Chen eventually utilized most of the export 

assistance programs that were offered at the time, including 

agent/distributor searches and trade missions. 

Chen also sought out the assistance of the U.S. Embassy. 

Working with the staff, she began to understand that 

government export assistance programs could help 

her get into new markets, and lower the cost of doing 

so. Incrementally, with the help of government export 

assistance and her own networks, Chen has built her own 

export portfolio - one market after another in a relatively 

short amount of time. While she does business in Asia, 

she also exports to Bangladesh, the U.K., South Africa, 

and Brazil. The company’s current challenges are the firm’s 

technical capabilities—not her dreams and ambitions. 

Chen has participated in the U.S. Department of 

Commerce’s “Gold Key” program64 and continued to work 

with the U.S. Embassy to connect her to the appropriate 

prospects within a country.

Impact of Exporting

At the time of the interview, direct exports of Power 

Clean 2000 account for an estimated 15-20 percent of its 

total revenues – they used to represent an even higher 

proportion. Over the years, however, the company’s 

business model changed to one that puts greater emphasis 

on exporting indirectly through licensing agreements and 

technology transfers. Her partners are now incorporating 

Power Clean 2000 technology and components into their 

exported products. The company’s new product line, 

FaceLube for Men, is intended for direct export and is 

already being exported on a trial basis to a handful of 

foreign markets. 

64 The Gold Key program is a cost-recovery fee based, customized matchmaking 

service that enables U.S. companies to find an ideal overseas distributor or 

business representative. The program is provided through the U.S. Export 

Assistance Centers. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

22

Overcoming Trade Barriers

Unlike many other SMEs, financing hasn’t been a major 

problem for Power Clean 2000, but intellectual property 

right (IPR) protection has been. In this regard, China 

continues to be a particularly troublesome market. “Over 

the years, the company has encountered just about every 

conceivable IPR nightmare,” Chen stated, “including costly 

battles in local courts and corrupt local officials, to scenarios 

where judgment-proof competitors would simply open up 

shop as a new entity to sell the same counterfeited goods 

faster than the court could serve judgment papers.” Except 

for the ability to understand legal decisions and converse 

with lawyers without the need for translators, her Chinese 

heritage has been of no help in preventing IPR theft. Chen 

has learned the hard way that in China that distribution 

contracts are only as good as the people who sign them. 

In her opinion, the best protection against IPR theft is 

undertaking robust due diligence before entering into an 

agreement with any foreign partner. Continued vigilance 

is also needed, which Chen cautioned not to leave solely in 

the hands of distributors. 

Case # 2: MBE Exporter Irismar Henrie: 

Exporting to Brazil and to Multiple 

Countries

About the Owner

IIrismar Henrie is a Brazilian American, born and raised 

in Rio, Brazil, and emigrating to the U.S. more than 20 

years ago. Henrie has over 30 years of experience in the 

international market, working with a diverse range of 

small, large and multinational companies, importing and 

exporting a variety of manufactured products, and working 

with international banks. Henrie holds a Bachelor’s degree 

in the English, German, Spanish and Portuguese languages 

from the State University of Rio de Janeiro in Brazil. Her 

diplomas in the German language are from Goethe-Institut 

and Ludwig-Maximilans-University in Munich, Germany. 

In addition, Henrie was a scholarship holder of Funcex 

(Fundação Centro de Estudos do Comércio Exterior), a 

private institution whose main purpose is the development 

of Brazilian foreign trade, associated with Cacex-Carteira 

de Comércio Exterior do Banco do Brasil S.A,. Funcex is 

a permanent and independent channel of communication 

between the private and public sector, important for 

the development of foreign trade policies that benefit 

entrepreneurs.

In November 2001, Henrie established Iris Trade in New 

York, an import and export firm that trades mostly with 

Brazil, China, and Europe. The company also acts as 

reseller, trader, merchant, and agent and distributor for 

large global manufacturers of industrial products and raw 

materials. Recently, Iris Trade launched a new division, 

Iris Naturals International that specializes in supplying 

functional ingredients for the dietary supplement, 

cosmeceutical, nutraceutical, and pharmaceutical 

industries. New markets in Asia and Europe have been 

opening up for these products and for the wide range 

of botanicals “in natura” and organic raw materials that 

Henrie supplies from growers in the Amazonian Region of 

Brazil. 

Unique MBE Exporting Characteristics:

Entrepreneurial Orientation

Henrie worked with her parents at their two wholesale 

stores in Rio de Janeiro, Brazilas as a teenager. In the role 

of apprentice, she learned basic business acumen, and paid 

particular attention to the importance of good customer 

service, salesmanship, and the need to price products 

competitively. Prior to starting her own firm, Henrie 

worked in the international trading field for several small 

and large international companies. During that time, she 

always had sights on opening her own business and worked 

extensively in Brazil, Germany, and in the United States. 

Country of Origin Linkages

While Henrie doesn’t have family and friends in Brazil 

to constitute a business network, she had an impressive 

roster of customers that she has built up over the years. As 

a Brazilian, she is also part of the culture and understands 

how to be advantageous in her business dealings. Because 

Henrie worked in Brazil, including when working for 

others, she had a “ready-made” customer base and was 

prepared to transition to entrepreneurship. Henrie noted 

during the interview that, since she has been in business, 

there was never a time that she didn’t have customers. 

Impact of Exporting

Over the years, Henrie has experienced challenges as 

a small business owner, particularly when collecting 

payments. She shared in the interview that the scale of 

her business is too small to take huge risks. She indicated 

that she has gotten “burned” in business twice, but not 

to a major extent. “In the normal course of business, 

not everything always works out,” she noted during the 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

23

interview. Henrie also recognized that any risks she has 

taken have been worthwhile because her business continues 

to grow, along with her reputation in Brazil. 

All of Iris Trade’s revenue – approximately $1 million 

annually – is generated from trading. Its trading portfolio 

includes its mainstay products of spare parts, accessories 

for textile machinery, aviation and mining equipment, and 

electronics that are sold mostly to Brazil. Iris Trade’s new 

product line of Iris Naturals is also becoming increasingly 

important and has opened up new markets in France, 

South Africa, Korea, Indonesia, Holland, and Canada. 

Overcoming Barriers to Exporting

There is a distinction between the barriers Henrie has 

faced as a businessperson in the U.S., and those that are 

specifically related to exporting. In terms of the former, 

Henrie stated that she has experienced discrimination as a 

woman and ethnic minority in the U.S. that she believes is 

the reason why she had initial difficulties obtaining credit. 

After nearly a year of trying, Henrie was finally able to 

secure a SBA-backed loan—but only after she refinanced 

her apartment and utilized a portion of the proceeds 

to grow her business. Aside from the SBA-backed loan, 

she was unaware at the time of the interview of other 

government resources that could assist her and hasn’t had 

the time to fully investigate the possibilities. 

There are no major barriers that Henrie has experienced 

in Brazil, but she also noted that she primarily works with 

larger companies that have insulated her from some of 

the challenges experienced by MBEs. If Henrie wanted to 

elevate her business in size and scale, she shared, she would 

probably have to open a local office in Brazil; however, at 

the time of the interview, she was not ready to make that 

investment. When Henrie completed the interview, she was 

satisfied with working with larger companies, agents, and 

distributors in Brazil, and through facilitators in the other 

countries in which she works.

Case # 3: MBE Exporter Luis German 

Guacaneme: Exporting to Colombia 

About the Owner

Luis German Guacaneme established Dinamica 

International, Inc., DBA Gator Turf, a multi-line flooring 

and surface coverings solutions company, in Boca Raton, 

Florida, in 1998. It is a family-run business that includes 

his wife, son, and daughter. Dinamica primarily exports to 

Colombia that is Guacaneme’s country of origin. Prior to 

establishing his business in the U.S., Guacaneme imported 

products from the U.S. into Colombia. At a certain point, 

he stated, ”[It} dawned on him that it might be more 

advantageous to do it the other way around; to export 

products to Colombia from the United States.” 

Unique MBE Exporting Characteristics:

Country of Origins Linkages

“Being from Colombia and exporting to the country has a 

number of benefits,” according to Guacaneme. First and 

foremost, he noted that “having cultural and linguistic ties 

makes it easier to understand the business environment and 

to be accepted by customers; it also makes it easier to collect 

market information.” Guacaneme found that being familiar 

with and having ties in the Colombia market enabled him 

to access information about strategic partners, agents, and 

distributors more readily than might otherwise be the case. 

These ties also helped him to identify and create export 

opportunities through Spanish language advertising and 

product promotion within the country. 

Family connections were also very valuable for Guacaneme. 

His network of family and friends in Colombia assisted 

him in identifying business leads that supplemented his 

own research. Guacaneme also added that having the inside 

track as a native of Colombia was a two-fold benefit on 

both the exporting and importing sides of the business. 

In addition to being an exporter of flooring products and 

related services to Colombia, Guacaneme imports specialty 

food items and is now expanding into providing consulting 

services related to flooring. 

In his interview, Guacaneme stressed that he had no special 

business ties with Colombia, just family and friends. He 

noted that he had to build his customer bases one client at 

a time. 

Impact of Exporting

Guacaneme emphasized that exporting takes a lot of 

expertise and business owners cannot just rely on family 

connections and friends or even on knowledge of the 

market. “What’s important,” according to Guacaneme,

“is to understand and be an expert in what you are selling, 

to provide good service after the sale, and to be known for 

reliability. Above all, one must believe in oneself.”
Minority Exporters: Characteristics and Strategies for New Business and Expansion

24

Leveraging U.S. Government Trade Promotion 

Resources

Guacaneme emphasized in his interview that the current 

Dominican Republic-Central America FTA (CAFTADR FTA) makes exporting to Colombia more attractive. 

Consequently, he expects to grow his exports to Colombia 

even further in the coming years. 

He was also exploring other markets in the region and 

expanded his business reach into Venezuela, Guatemala, 

and Panama. It took Guacaneme thirteen years to consider 

branching out beyond the market that he knew and 

understood. Beyond the issue of knowing a particular 

country’s market, he stated that he needed to develop a 

comfort level with all of the mechanics of exporting. Over 

the years, he now feels like he has mastered the process, and 

can take full advantage of this knowledge base.

Guacaneme’s company will soon export to the Dominican 

Republic (DR). In preparation, Guacaneme participated 

in an export trade mission led by Enterprise Florida. 

During this process, he received invaluable advice about 

market prospects and is growing the business in the DR. 

In hindsight, Guacaneme found trade missions, like the 

one organized by Enterprise Florida, as very valuable in 

developing his business model. Despite this engagement, 

Guacaneme was somewhat skeptical about federal 

government assistance at the time of the interview. In his 

view, the attention is more on larger firms, not the smaller 

ones. But in the case of Guacaneme, he shared in his 

interview that “he’s happy to be proven wrong on this.” 

Case # 4: MBE Don Williams: Exporting 

among African American Firms

As shared earlier in the report, African American exporters 

do not often have strong country of origin linkages 

making it more difficult to engage family ties associated 

with exporting. While data is not readily available, the 

experience of African American exporters can demonstrate 

how these firms are building upon previous business 

knowledge, available external resources and, in some 

cases, historical ties to other global communities of color. 

The case of MBE exporter Don Williams reflects some 

of the same unique characteristics, while highlighting 

more salient differences with African American-owned 

businesses engaged in exports.

About the Owner

Don Williams, an African American, is Founder, President, 

and CEO, of Princeton Healthcare International (PHI), 

which was established in 1998 in Atlanta, Georgia. By 

the year 2000, PHI was already exporting. PHI is a multiline intermediary exporter doing business in numerous 

countries. One of PHI’s main lines of business is medical 

technologies and equipment that is sourced from a broad 

range of manufactures and suppliers. PHI’s expertise in 

medical devices and information technologies, medical 

diagnostics, patient monitoring systems, performance 

improvement, drug discovery, and biopharmaceutical 

manufacturing technologies, helps a wide-range of 

hospitals, administrators, and clinicians to find new ways 

to predict, diagnose, and treat diseases. PHI’s broad range 

of products and services also enable healthcare providers to 

better diagnose and treat cancer, heart disease, neurological 

diseases, and other conditions, earlier.

PHI exports both goods and services. In regard to the 

latter, PHI provides management consulting services to 

hospitals, clinics, and laboratories—both domestically and 

internationally. The company also specializes in strategic 

planning, operational assessments, feasibility studies, 

financial planning, Certificates of Need (CON), new service 

development, capital improvement planning, financing and 

implementation. PHI also provides assistance in securing 

financing, strategic planning, and in conducting feasibility 

studies. 

As CEO of PHI, Williams engineered the first sale of 

healthcare equipment to the West African nation of Cote 

d’Ivoire (Ivory Coast) that was underwritten by the ExportImport Bank of the United States. He has since completed 

numerous equipment, service and financing transactions in 

West and Southern Africa, and is now regarded as a leading 

authority in U.S. trade with sub-Saharan Africa. In 2002, 

PHI’s exporting achievements in Africa received a special 

award from the U.S. Department of Commerce.

After a series of successful transactions in Latin America, 

PHI became one of the first MBEs to obtain expansion 

financing from OPIC, a U.S. government agency that 

traditionally helps finance major sales in developing 

countries by Fortune 100 corporations. Mr. Williams 

holds a Bachelor’s Degree from Boston University and a 

Masters in Management from Northeastern University. He 

is a graduate of Columbia University’s Graduate School of 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

25

Business, Executive Marketing & Business Program, and is 

a former Adjunct Professor of Marketing, Business Policy, 

and Healthcare Management.

Williams has served as chairman of U.S. Department of 

Commerce’s Industry Trade Advisory Committee (ITAC 

11) on Small and Minority Business, which is an integral 

link between industry and the U.S. Government. He also 

serves as Board Director and Chairman for the Small 

Business Exporters Association of the United States, and 

Board Director for National Small Business Association. 

Previously, Williams was selected by former President 

Jimmy Carter to be a Member of the Board of Councilors 

of the Carter Center in Atlanta, the human rights institute 

founded by the former President. 

Unique MBE Characteristics

Entrepreneurial Orientation

Williams is not an accidental exporter. He established his 

business in order to export – and he was well prepared 

for exporting from the start. Prior to establishing PHI, 

Williams was a senior professional at Siemens, which has 

a major international healthcare business. In that position, 

he learned about working in international markets. 

In his interview, he stated that: “[h]e always embraced 

internationalism and viewed himself as a global citizen, 

even though many found it extraordinary to see an African 

American world-traveler.” 

Williams’ international outlook was based entirely on his 

own making and imagination. He had no family or friends 

who helped spark his interest in travel or international 

business, nor did he have a network of family and friends 

to serve as reference points or mentors. According to 

Williams, “The key is to never fear exporting.” During the 

interview, Williams considered himself to be in a category 

of naturally inclined to export. A combination of his 

own entrepreneurial spirit, his professional training and 

knowledge of the healthcare sector, and the mentoring he 

received at Siemens, has enabled him to become adept in 

international markets. 

Today, over 50 percent of PHI’s revenue is derived from 

exporting and, in the future, Williams intends to skew the 

ratio to at least 70:30. 

Impact of Exporting

As Williams reflected on his experience as an exporter, he 

underscored that there are no shortcuts. “You have to roll up 

your sleeves and do the work and the starting place is to know 

and understand your sector,” he said. As an intermediary 

exporter and direct exporter of services, Williams focuses 

on understanding his competition, current product prices 

and latest technologies, and other factors that define the 

medical sector. His apparent hard work and persistence 

help him to stay abreast of developments on both the 

supply and demand sides of his business.

Williams added, “Many times when I speak to audiences 

about exporting, everybody wants to know the answer about 

how to export and whether there’s a magic formula. There 

isn’t. Exporting is hard work and, as I have said, there are no 

shortcuts.”

When discussing his internal management, Williams 

shared that “[i]n my headquarters office, everybody works 

on our export deals, because exporting is the core of our 

business. Overseas, we have strategic partners in every 

market in which we are working and every relationship is 

structured to fit the particular circumstance.” Williams 

stated he has learned the hard way about how to vet and 

evaluate partners. “It’s not only about trust. The critical issue 

we care about is whether the partner has the commitment to 

get out there and sell.”

“Trust is built incrementally, one deal at a time. You take 

small smart steps and go from there. In the meantime, it 

is important to have your partners sign Non-Disclosure 

Agreements. In fact, we just sued a partner in South Korea—

and we won,” Williams stated during the interview.

Overall, exporting has contributed to a more viable 

business model for PHI. According to Williams, “[m]

y message in a nutshell is that exporting is rewarding, but 

it’s hard. You shouldn’t do it unless you are ready to do it, 

know what you are doing, and have a financial solution that 

enables you to do it. One way or the other, jumping in blindly 

is not an option.”

Overcoming Barriers to Exporting

When PHI started, it had minimal capital. Williams 

emphasized that African American firms, as a whole, tend 

to be undercapitalized and under-resourced. “As a result, it’s 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

26

particularly difficult for African American firms to go global, 

as they often have to use their own money and typically their 

pockets aren’t deep enough,” he stated. 

Williams, like many other African American firms, had no 

major financial backers - and no deep financing of any kind 

at the onset of his business. However, what he did possess 

was an abundance of knowledge about the sector and the 

personal traits of commitment, drive, and work ethic. 

Williams also knew how to source the products he wanted 

to sell overseas, and had some knowledge about foreign 

demand—especially in underserved markets. In short, he 

shared, “I knew if I could deliver [the right products at the 

right price], I was in. I didn’t have to have relatives or friends 

in the foreign markets; I was selling what they were buying.” 

Many African American-owned firms, and most exporters, 

according to Williams, also start out in Canada and 

Mexico, which are very well known and easy to navigate 

markets. Williams, however, purposely went in another 

direction. Knowing that he’d have difficulty competing in 

the healthcare sector in Canada and Mexico against much 

larger firms, he focused on underserved markets where PHI 

didn’t have as much competition. 

His first export experience was in Cote d’Ivoire; next, 

Ghana, India, and then Brazil, and he’s still in expansion 

mode. At the time of the interview, PHI exports products 

and services to ten countries including South Africa, 

Colombia, Chile, and South Korea.

“It is not a coincidence that PHI’s expansion globally is in 

markets where the U.S. has Free Trade Agreements (FTAs),”

Williams said during the interview. “Such agreements 

matter to small firms like ours because they lower the cost by 

eliminating tariffs, which can make all the difference to my 

ability to compete.” By contrast, he stated: “not having FTAs 

with Brazil and South Africa hurts us a lot.”

Leveraging U.S. Government Resources

Williams sought both federal and state level support in 

the expansion of his exporting business. At the time of the 

interview, PHI took advantage of everything that is offered, 

and received export financing from the Ex-Im Bank and 

uses its insurance products, as well. PHI had also been the 

recipient of OPIC resources. Generally, Williams stated, “we 

stay apprised of what the government is doing at the federal 

and state levels and are in close touch with the state level 

export promotion authorities in the State of Georgia where 

we are located.” In addition, Williams, as an Advisor to the 

Secretary of Commerce on Trade Policy Matters Affecting 

Small and Minority Business for many years, felt connected 

to the appropriate resources and networks. “This Committee 

keeps me apprised of various trade policy matters and gives 

me a voice to raise my concerns,” said Williams. 

Though he took advantage of government programs to 

promote his exporting, Williams stressed that he was not 

relying on the government to do his homework for him. 

Generally speaking, he stated, “I have deeper experience 

in doing global business than those in the government who 

would advise me – but that doesn’t mean that the connections 

and the information facilitated by government agencies aren’t 

important. They add to what I’m doing and researching on 

my own.” 

“At the end of the day we have to remember that 95 percent 

of the world’s consumers are out there, not here—even though 

many firms are content just to sell to the U.S. Government. 

The growth is out there though so I’d encourage firms to get 

their ducks in a row to begin exploring new markets, but do 

it the right way, do your homework, and know what you are 

selling to whom,” Williams shared in the interview. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

27

Lessons Learned From the Case 

Studies

Many of the themes in the literature review reflect the 

testimony of the case study participants. From their 

experiences, for instance, country of origin linkages can 

have a positive impact on exporting potential, but it’s also 

possible to succeed just being entrepreneurially-oriented 

as in the case of Don Williams who held no significant 

cultural ties to his exporting countries. Moreover, barriers 

to exporting require planning, vetting and partnerships 

to be properly addressed and resolved. Although some 

barriers, as in the case of Chen’s IPR infringement, are 

more difficult to overcome. These exporters all learn from 

experience and keep their aspirations for growth front 

and center. Accessing government resources was equally 

meaningful for case study respondents, especially when 

delving into unknown or less friendly business situations. 

Most important in all of the case studies was the salient 

point that understanding U.S. markets was as important of 

one’s awareness of global operations. 

The case studies reveal six best practices for MBE exporters 

to be successful.

Doing nothing is not an option. All of the exporters 

had to start somewhere and the starting point was the 

desire to branch out overseas to expand their market 

opportunities. However, it is noted that all of the exporters 

were previously exposed to export operations before they 

started the process themselves. 

Going it alone in foreign markets is not an 

effective export strategy. All of the case study 

participants emphasize the importance of having a 

professional and reliable network of agents, distributors, 

and/or partners in foreign markets to promote sales and 

provide support.

Taking advantage of all available resources is 

a good strategy, including trade agreements.

In order to take advantage of resources, one must know 

what resources are available; this requires research and the 

willingness to engage with government entities in order 

to ascertain how they can help. Most of the profiled firms 

also managed to be involved with entities at various levels 

of government in order to stay better informed about trade 

policy. These firms also use this information to pinpoint 

and strategize about which markets to target.

Knowing when to listen to others or to go with 

your gut instinct is important. While the firms here 

profiled asked for advice from others, their own experience 

and judgments were paramount when making decisions 

about if and when they should enter into foreign markets. 

Smaller can be better when exporting to a niche 

market. All of the case study respondents shared that 

smaller firms face greater obstacles to exporting. However, 

when smaller firms leverage their advantages in foreign 

markets, it can help them succeed. The profiled firms have 

shown that they use any advantages they have, including: 

knowledge, connections, and/or external resources. In the 

truest sense of the word, they are entrepreneurs.

When country of origins ties do not exist, 

MBEs can rely upon historical ties to global 

communities of color to cultivate cultural 

affinities. Exporting creates a competitive advantage for 

all MBEs, regardless of home country. In the case of MBEs 

the ability to compensate by increasing their knowledge 

of the country and the business acumen, along with 

requesting support to cultivate the appropriate economic 

ties, works to the advantage of these firms. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

28

The data presented in the report suggest that more MBEs 

need to be cultivated to be exporters of products and 

services, and when they do, it positively impacts their 

bottom line. Such a finding is incredibly important as the 

scale of exporting is likely to assist MBEs gain parity in 

the marketplace. As MBEs export, it will be their level of 

experience, development of products and services and 

resolve to historical and persistent challenges that will 

facilitate further inroads in global markets. In the ensuing 

years since the 2007 SBO data were recorded, this has 

undoubtedly already occurred. The question is how to 

effectively support minority-owned firms to ensure that 

trade policy and trade promotion initiatives are crafted to 

unleash their full exporting potential.

Efforts by the U.S. Census Bureau to generate a richer 

dataset focusing on the totality of MBE exporters is a start, 

and this data should be equivalent to the information 

available about SME exporters. 

Clearly, the data suggest that MBEs should be made aware 

of the value of exporting to expand their business models 

and reach. More targeted outreach to minority-owned 

firms is needed, and existing data should be supplemented 

with additional studies to better understand the locations, 

products, and methods of exporting among subgroups 

within the exporting universe. The characteristics of the 

subgroups vary and so do their exporting strategies, top 

products and services, and overseas markets, as the data 

in this report suggest. Thus, promotion strategies aimed at 

Asians may need to differ from those aimed at Hispanics or 

African Americans. 

The data show that FTAs create export opportunities. FTA 

benefits should be promoted to seasoned and new MBE 

exporters. Evidence from the case studies has indicated that 

successful MBEs are seizing some of these opportunities. 

Consideration should, therefore, be given to expanding 

outreach to subgroups within the MBE universe of firms 

to ensure that they are aware of the opportunities afforded 

through FTAs.

Moreover, government and non-government resources 

must be highlighted to gain the level of commercial 

diplomacy needed to create more internationally-driven, 

minority-owned firms. Leveraging the expertise of the U.S. 

Department of Commerce, and the associated agencies, 

like MBDA, can only affirm the Obama Administration’s 

commitment to a more robust export economy. 

Going forward, the research demonstrates that greater 

attention towards supporting MBE exporters is essential to 

their growth, and analyzing data about their characteristics 

to tailor trade promotion initiatives can also facilitate 

expansion. As the U.S. population trends toward a 

majority population, MBE share of business ownership 

should parallel this growth, with exporting as one of many 

viable options available to MBEs. Leveraging the ability 

of minority-owned firms to export benefits the nation 

through job and wealth creation and ultimately contributes 

to U.S. global competitiveness in existing and emerging 

industries. 

MBDA has played an integral role in supporting MBEs 

that desire global business expansion and partnership. 

As the preeminent agency within the U.S. Department of 

Commerce committed to minority business development 

and expansion, MBDA will continue to serve as both a 

convener and connector of these firms in the U.S. and 

overseas. 

Going Forward
Minority Exporters: Characteristics and Strategies for New Business and Expansion

29

Introduction 

The study commissioned by the Minority Business Development Agency of MBE exporters draws heavily on the U.S. 

Census 2007 SBO. In order to be able to make valid comparisons between datasets, the Consultant has been requested 

to undertake confidence interval testing. Accordingly, tests were applied to selected data (employment, productivity, and 

receipts) pertaining to the main characteristics of MBEs that have been addressed in the SBO report. In addition, tests have 

been conducted to determine the significance of selected country of origin social network effects that certain subgroups of 

MBEs can leverage to help them export. 

Methodology

A test for the difference between two sample means was employed to determine whether there is significant difference 

between the means of selected estimates for MBEs that export compared to those that do not export. The difference 

between the means of each category of exporting MBEs was also compared to each other on their export to selected 

countries in order to determine whether MBEs export more to their countries of origin due to the social network 

advantages they are perceived to have. The countries selected are: China, India, and Mexico. 

Confidence intervals at 90 percent (A – zxSEA, + z x SEA) were constructed for each estimate the difference between two 

estimates. 

In order to test the statistical significance we used confidence interval. The confidence interval of the difference of two 

parameters is given by: 

 ([A–B] – z x SESEA–B,[A – B] + z x SEA–B).

Where:

[A–B] + z x SEA–B is the upper bound.

[A–B] – z x SEA–B is the lower bound.

Ζ is the constant value selected at specified alpha. In this case the value is 1.645 because we specified alpha to 0.1 

is the standard error of the difference of two parameters which is given by:

APPENDIX 1: 

Research and Methods Technical Notes
Minority Exporters: Characteristics and Strategies for New Business and Expansion

30

Analysis of Results and Report of Relative Standard Errors

Average Productivity

Table A. Relative Standard Errors for MBEs with Exports vs. MBEs without Exports for Table 6

Average Productivity (AP) 

($1,000) RSE of Average Productivity

MBE Firms with Exports 408 4

MBE Firms without Exports 123 1

Source: U.S. Census, Survey of Business Owners, 2007 

The average productivity for MBEs with exports was $408,000, while the comparable calculation for MBEs without 

exports was $123,000 showing a difference of $285,000 (90% CI: 311.9, 258.1) 

Table B. Relative Standard Errors for MBEs with Exports vs. Nonminority Firms with Exports for Table 6

Average Productivity (AP)

($1,000) RSE of Average Productivity

MBE Firms with Exports 408 4

Nonminority Firms with Exports 318 1

Source: U.S. Census, Survey of Business Owners, 2007 

The average productivity of MBEs with exports was higher by $90,000 (90% CI: 117.4, 62.6) compared to the average 

productivity of nonminority firms with exports. 

Table C. Relative Standard Errors for MBEs with Exports vs. Nonminority Firms without Exports for Table 6

Average Productivity (AP) 

($1,000) RSE of Average Productivity

MBE Firms with Exports 408 4

Nonminority Firms with Exports 155 1

Source: U.S. Census, Survey of Business Owners, 2007 

The average productivity of MBEs with exports was $408,000 compared to $155,000 for nonminority firms with exports, 

which shows a difference of $ 253,000 (90% CI: 312,000, 258,000). 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

31

Table D. Relative Standard Errors for Asian Firms with Exports vs. Asian Firms without Exports for Table 6

Average Productivity (AP)

($1,000) RSE of Average Productivity

Asian Firms with Exports 407 5

Asian Firms without Exports 132 2

Source: U.S. Census, Survey of Business Owners, 2007

Average productivity of Asian firms with exports was $407,000, which was higher by $275,000 (90% CI: 308,800, 241,200) 

compared to $132,000 for Asian firms without exports. 

Table E. Relative Standard Errors for Black or African American Firms with Exports vs. Black or 

 African American Firms without Exports for Table 6

Average Productivity (AP) 

($1,000) RSE of Average Productivity

African American or Black Firms 

with Exports 294 17

African American or Black Firms 

without Exports 98 3

Source: U.S. Census, Survey of Business Owners, 2007

The average productivity of Black or African American firms with exports was $294,000, which was higher by $196,000 

(90% CI: 278,400, 113,600) compared to $98,000 for Black or African American firms without exports. 

Table F. Relative Standard Errors for American Indian and Alaska Native Firms with Exports vs. 

American-Indian and Alaska Native Firms without Exports for Table 6

Average Productivity (AP) 

($1,000) RSE of Average Productivity

American Indian and Alaska 

Native with exports 354 11

American Indian and Alaska 

Native without exports 135 5

Source: U.S. Census, Survey of Business Owners, 2007

The average productivity of American Indian and Alaska Native firms with exports was $354,000, which was higher by 

$219,000 (90% CI: 284,000, 154,000) compared to $135,000 for American Indian and Alaska Native firms without exports. 

The wide confidence interval shows greater variability of the average productivity among American Indian and Alaska 

Native firms. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

32

Table G. Relative Standard Errors for Hispanic Firms with Exports vs. Hispanic Firms without 

 Exports for Table 6

Average Productivity (AP)

($1,000) RSE of Average Productivity

Hispanic Firms with Exports 444 6

Hispanic Firms without Exports 120 2

Source: U.S. Census, Survey of Business Owners, 2007

The average productivity of Hispanic firms with exports was $444,000, which was higher by $324,000 (90% CI: 368,000, 

280,000) compared to $120,000 for Hispanic firms without exports. 

Average Employment

MBEs with exports have higher average employment compared to minority and nonminority firms without exports. 

However, minority firms have lower average employment relative to nonminority firms with exports. The average number 

for MBEs with exports was 21, while the comparable number for MBEs without exports was 7, which shows MBE 

exporting firms have on average have 14 (90% CI: 15, 13) more employees than MBEs without exports. 

Table H. Relative Standard Errors for MBE Firms with Exports vs. Nonminority Firms with Exports for 

 Table 7

Average Employment RSE of Average Employment

MBE Firms with Exports 21 4

Nonminority Firms with Export 64 1

Source: U.S. Census, Survey of Business Owners, 2007

Average employment of MBEs with exports was 21 while while the comparable figure for nonminority firms was 64, which 

shows a difference of 43 employees (90% CI: -45, -41). 

Table I. Relative Standard Errors Black or African American Firms with Exports vs. Black or African 

American Firms without Exports for Table 7

Average Employment RSE of Average Employment

Black or African American Firms 

with Exports 33 14

Black or African American Firms 

without Exports 8 2

Source: U.S. Census, Survey of Business Owners, 2007
Minority Exporters: Characteristics and Strategies for New Business and Expansion

33

A comparison of average employment within the minority firms with and without exports show that the difference of the 

average employment among Black or African American firms with exports and those without exports was 25 (90% CI:33, 

17). The wide confidence interval also shows greater variability of the average number of employment among Black or 

African-American firms. 

Table J. Relative Standard Errors for American Indian and Alaska Native Firms with Exports vs. AmericanIndian and Alaska Native Firms without Exports for Table 7

Average Employment RSE of Average Employment

American Indian and Alaska 

Native Firms with Exports 

28 20

American Indian and Alaska 

Native Firms without Exports

7 4

Source: U.S. Census, Survey of Business Owners, 2007

Comparison of average employment within the minority firms with and without exports show that the difference of the 

average employment among American Indian and Alaska Native firms with exports and those without exports was 21 

(90% CI:30, 12). The wide confidence interval also shows greater variability of the average number of employment among 

American Indian and Alaska Native firms. 

Table K. Relative Standard Errors for Asian Firms with Exports vs. Asian Firms without Exports for Table 7

Average Employment RSE of Average Employment

Asian Firms with Exports 21 5

Asian Firms without Exports 7 1

Source: U.S. Census, Survey of Business Owners, 2007

A comparison of average employment within the MBES with and without exports shows that the average employment 

among Asian firms with exports was higher by 14 (90% CI: 16, 12) relative to those without exports. 

Table L. Relative Standard Errors for Hispanic Firms with Exports vs. Hispanic Firms without Exports for 

Table 7

Average Employment RSE of Average Employment

Hispanic Firms with Exports 21 5

Hispanic Firms without Exports 7 1

Source: U.S. Census, Survey of Business Owners, 2007

Comparison of average employment among Hispanic firms with and without exports show that the average employment 

among Hispanic firms with exports was higher by 12 (90% CI: 13, 11) relative to those without exports. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

34

Exports Receipts as a Share of Total Revenue

The share of receipts that are derived from exports indicates the extent of a firm’s export orientation. The higher the share 

the greater the degree of export orientation. Significance tests were conducted to ascertain the difference in the export 

orientation of MBEs compared to nonminority firms. 

Table M. Relative Standard Errors for Export Share of Total Revenue: MBE Firms with Exports vs. 

Nonminority Firms with Exports for Table 8

Export Receipts as a Percentage 

of Total Receipts

SE of Export Receipts as a 

Percentage of Total

MBE Firms with Exports 14 1.5

Nonminority Firms with Exports 5.4 0.2

Source: U.S. Census, Survey of Business Owners, 2007

The share of export receipts of total revenue for MBEs with exports was 14% compared to the 5.4% for nonminority firms 

with exports showing a difference of 8.6% (90% CI 8.9, 8.3). 

Table N. Relative Standard Errors for Comparison of Export Share of Total Revenue Among MBE Firms with 

Exports: Hispanic vs. Asian Firms for Table 8

Export Receipts as a Percentage

of Total Receipts

SE of Export Receipts as a 

Percentage of Total

Hispanic Firms 12.6 1.7

Asian Firms 15.7 2.3

Source: U.S. Census, Survey of Business Owners, 2007

Comparison of export receipts as a share of total revenue between Hispanic and Asian firms shows that the 

difference is not statistically significant (90% CI 6.7, -0.5) since the confidence interval contains zero. 

Table O. Relative Standard Errors for Comparison of Export Share of Total Revenue Among MBE Firms: 

Black or African American vs. Hispanic Firms for Table 8

Export Receipts as a Percentage 

of Total Receipts

SE of Export Receipts as a 

Percentage of Total

Hispanic Firms 12.6 1.7

Black or African American Firms 4.5 0.8

Source: U.S. Census, Survey of Business Owners, 2007
Minority Exporters: Characteristics and Strategies for New Business and Expansion

35

A comparison of export receipts as a share of total revenue between Hispanic firms and Black or African American firms 

show that the share for Hispanic firms is greater by 8.1 percentage points (90% CI 11.6, 4.6). However, the wide confidence 

interval shows wide variability of the estimate. 

Table P. Relative Standard Errors for Comparison of Exports Share of Total Revenue Among MBE Firms: 

Black or African American vs. Asian Firms for Table 8

Export Receipts as a Percentage 

of Total Receipts

SE of Export Receipts as a 

Percentage of Total

Asian Firms 15.7 2.3

Black or African American Firms 4.5 0.8

Source: U.S. Census, Survey of Business Owners, 2007

A comparison of export as a share of total revenue between Asian firms and Black or African American firms shows that 

the share for Asian firms is greater by 11.2 percentage points (90% CI 11.8, 10.6). 

Export Market Destination: Country of Origin Social Network and Export 

Performance

Table Q. Relative Standard Error for Comparison of Chinese MBE Firms Exporting to China vs. Asian Indian 

Firms Exports to China for Table 9

Firms Exporting to China (number) RSE of Firms (number)

Chinese Firms 2,286 11

Asian Indian Firms 362 19

Source: U.S. Census, Survey of Business Owners, 2007

While the difference between the number of Chinese MBEs exporting to China and Asian Indian firms exporting to China 

is significant, [90% CI 2353, 1495], the very wide confidence interval observed can be attributed to the wide variability of 

the population of Asian Indian firms from which the sample is taken which is reflected in its high relative standard error. 

Thus the confidence interval, while statistically significant, does not provide much information about the difference in 

exporting between Chinese and Asian Indian firms to the China market. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

36

Table R. Relative Standard Errors for Asian Indian MBE Firm Exports to India vs. Chinese Firm Exports to 

India for Table 10

Firms Exporting to India (Number) RSE of Firms (Number)

Chinese Firms 300 16

Asian Indian Firms 944 20

Source: U.S. Census, Survey of Business Owners, 2007

The difference between the number of Asian Indian–owned firms and the number of Chinese firms that export to India 

ranges from 324 to 964 [90% CI 964, 324]. 

Table S. Relative Standard Errors for Hispanic MBE Firm Exports to Mexico vs. Asian MBE Firms Exports to 

Mexico for Table 11

Firms Exporting to India (Number) RSE of Firms (Number)

Hispanic Firms 2,585 10

Asian Firms 1,802 10

Source: U.S. Census, Survey of Business Owners, 2007

The difference between the number of Hispanic firms exporting to Mexico compared to Asian firms exporting to Mexico 

ranges from 265 to 1,301(90% CI 1301, 265) showing that more Hispanic firms export more to Mexico than Asian firms. 

Table T. Relative Standard Errors for Mexican, Mexican American, Chicano MBE Firm Exports to Mexico 

vs. Chinese MBE Firm Exports to Mexico for Table 12

MBEs Exporting to Mexico (Number) RSE of Firms (Number)

Hispanic Firms 1,666 15

Asian Firms 879 10

Source: U.S. Census, Survey of Business Owners, 2007

The difference between the number of Mexican, Mexican American, Chicano–owned firms and the number of those of 

Chinese firms that export to Mexico ranges from 351 to 1,223 firms [90% CI 1,223, 351]. 
Minority Exporters: Characteristics and Strategies for New Business and Expansion

37

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Minority Exporters: Characteristics and Strategies for New Business and Expansion

40

About the Minority Business Development 

Agency (MBDA)

The U.S. Department of Commerce’s Minority Business Development Agency (MBDA) is the only federal agency solely 

dedicated to the growth and global competitiveness of minority-owned businesses in America. Established in 1969, MBDA 

provides services to African American, Asian American, Hasidic Jew, Hispanic American, Native American/Alaskan, 

Native Hawaiian, and Pacific Islander entrepreneurs. 

MBDA’s mission is to promote the growth and expansion of minority-owned businesses through the mobilization 

and advancement of public and private sector programs, policy, and research. The agency coordinates and leverages a 

nationwide network of more than 40 MBDA Business Centers and a wide range of domestic and international strategic 

partners in support of its mission. 

Over the past several years, MBDA has focused on providing business development services to minority entrepreneurs 

who are pursuing federal contracts, emerging industries, alternative sources of capital, and expansion to global markets. 

These services, and other agency programs and initiatives, continue to position minority entrepreneurs to build size, scale 

and capacity, create jobs, and strengthen the U.S. economy.

About the U.S. Department of Commerce

The U.S. Department of Commerce promotes job creation, economic growth, sustainable development, and improved 

standards of living for all Americans by working in partnership with businesses, universities, communities, and our 

Nation’s workers. The department touches the daily lives of the American people in many ways, with a wide range of 

responsibilities in the areas of trade, economic development, technology, entrepreneurship and business development, 

environmental stewardship, and statistical research and analysis.

1401 Constitution Avenue, NW

Washington, DC 20230

202-482-2332

www.mbda.gov

www.MBDA.gov