SME Internationalization and Export Promotion Programs: Lessons from the United States for Latin America

Small and medium enterprises (SMEs) represent one of the main drivers of economic growth across Latin America. However, currently their contribution to GDP is well below that of SMEs in developed countries. Given the pivotal role that SMEs play to promote economic development in the region, it is essential to close these productivity gaps. Trade and internationalization represent important tools as they improve competitiveness, incentivize innovation and promote productivity.

As a consequence, the Inter-American Development Bank (IDB) is designing an electronic platform for SME export promotion and internationalization (hereafter referred as “the Platform”). Given that the U.S. has vast experience in SME export promotion, learning from its policies and programs will be very valuable for the implementation of the Platform. Moreover, recently, export promotion and regional integration have been at the center of the U.S. government’s efforts. President Obama launched the Small Business Network of the Americas (SBNA) to promote greater trade among SMEs throughout the Americas. Thus, the Platform will be able to generate synergies from the initiatives that stem from the SBNA and more successfully promote exports of Latin American SMEs. 

In the semester, the Capstone workshop team identified US best practices related to export promotion and internationalization policies for Small and Medium Sized Enterprises (SMEs). The research allowed the IDB to identify potential partnerships and opportunities for synergy with existing U.S. programs dedicated to export promotion on the federal/state/municipal level.