SBA Newsline Eight-SBA’s Monthly News Update -Serving Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming-

2003 has been proclaimed the "Year of the Exporter" in Region VIII.

Would you like more information on how your firm can export?

Email us at [email protected]

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Support for our troops is the key to victory. I want to show my complete support for our troops fighting in Iraq during these challenging times. As a Vietnam veteran, that saw combat in theatre, I realize what a difficult time it is for our men and women in uniform. Our thoughts are with our troops – our brothers and sisters, neighbors, co-workers and fellow Americans serving in the Middle East. I also want to re-emphasize the fact that SBA’s Military Reservist Economic Injury Disaster Loan Program is there to help small businesses that have suffered an economic injury because an owner or an essential employee was called to active duty. More information on this program can be obtained at http://www.sba.gov/disaster/mreidl.html or call any of our district offices at 1-800-776-9144.

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Guest Column by Dennis Chrisbaum, International Trade Specialist

A Look at International Marketing: Getting Started. One of the first things you will need before you export is a Schedule B number for your product, which will be put on your Shipper’s Export Declaration. The Trade Information Center can help you research that number, or you can go directly to the U.S. Census site to locate the number at http://www.census.gov/foreign-trade. You also will be able to find your product’s Harmonized Schedule number there. This is important because the first six digits of this number are used worldwide to classify products and determine local duty rates. With this number, you can then research the duty rates that your buyers will pay when importing your products into their country. Depending on the import duty, your products might, or might not, be competitive in a particular market.

When you are familiar with some of the basics of exporting, you will want to begin doing market research on potential markets. The Internet has changed they way we do research–there is so much available online now! One of the best sites to begin your market research is the U.S. Department of Commerce’s http://www.export.gov site, which provides market research by industry sector and country. You also will find country commercial guides on all the major markets in the world here, updated annually by our embassy staffs, on how to do business in a given country and the best prospects for U.S. exports in that market. And, you will find a list of trade events and services that could help you identify buyers or representatives for your products overseas.

If you are involved in producing agricultural or food items, please visit the U.S. Department of Agriculture/Foreign Agriculture Service’s website which has an excellent international business plan on it. Go to http://www.fas.usda.gov, and under "exporter assistance," you will find an option to create your own export plan. In addition, you will find market research reports and trade leads at this site. Two other helpful sites for country background information are: http://www.countrywatch.com and the CIA’s World Fact book, which can be found at http://www.cia.gov. Although international business is different from domestic business in some regards, certain business principles will not change. You still need to do proper market research, and you still need to address the four "P’s" of marketing which define marketing in any environment: product, placement, promotion, and pricing. In next month’s issue of Newsline Eight, I will discuss the four "P’s" of marketing in depth. Remember, marketing your products and services in foreign nations can be profitable, strategic, and always fun.

Dennis R. Chrisbaum, Regional Manager of International Trade Programs, U.S. Small Business Administration, is based at the U.S. Export Assistance Center in Denver. He covers Colorado, Wyoming, Utah, and New Mexico and may be reached at 303.844.6623 x 18; email: [email protected].

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The Regional Advocate’s Corner by Jim Henderson

Small firms are effective innovators. The contribution made by technical change to long-term economic growth and prosperity is well recognized. The important role of small firms to technical advancement, however, is not so fully understood. Recent research, funded by the Office of Advocacy, provides quantitative evidence of the significant role that small firms play in accelerating the pace for technical change. The report also offers insight into the importance of innovative networks in areas where our level of knowledge is developing rapidly (for example in biotechnology, medical technology, information technology and nanotechnology). The report, Small Serial Innovators: The Small Firm Contribution to Technical Change, examined 1,071 of the most prolific patenting companies, i.e. firms who were awarded 15 or more U.S. patents between 1996 and 2000. Such firms are known as serial innovators. A third of these firms are small businesses (businesses with fewer than 500 employees). This report looks at a range of characteristics of the patenting of small firms in relation to that of large firms.

Highlights of the study are that the small serial innovators obtain patents that were more technically important than the patents of large firms. Their patents were cited 28 percent more often by other inventors. Small firms more often pursue leading-edge technical niches. Small patenting firms produce 13-14 times more patents per employee as large patenting firms. A small firm patent is at least twice as likely to be found among the top 1 percent of highest-impact patents as a patent from a large firm. Small serial innovators in Colorado that were part of this study include: Castle Rock Industries Inc., Cortech Inc., Displaytech Inc., Heska Corp., Laser Technology Inc., NaPro Biotheapeutics Inc., Picolight Inc., Ramtron International Corp., Ribozyme Pharmaceuticals Inc. and Symetirx Corp. From Utah small serial innovators were Megadyne Medical Products Inc., Myriad Genetics Inc. Sarcos Inc., and Specialized Health Products Inc. You may obtain a copy of this report from the Office of Advocacy’s website at http://www.sba.gov/advo/research/rs225tot.pdf.

District Office Reports

Colorado

– Colorado District Office to host a FREE Women’s Business Ownership Finance Workshop on Wednesday, April 23rd, 9:00a.m. to 11:00a.m., at the Lakewood Cultural Center – 470 S. Allison Parkway in Lakewood. Over 150 women entrepreneurs attended the last workshop in February. Learn about the financial options available to women business owners. Representatives from the SBA, Colorado Enterprise Fund, and Venture Capital groups will be on-hand to answer questions. This workshop targets women entrepreneurs that currently own a business, or wish to start one in the very near future. This event is hosted by the City of Lakewood Office of Economic Development. RSVPs are required. For more information, call the SBA’s Jeanette Deherrera at 303-844-2607 x226.

Advertisers needed! The SBA and The Denver Business Journal are sponsoring this year’s "SBA: 50 Years as America’s Small Business Resource" special insert to be run May 23rd in The Denver Business Journal. We need sponsors for this insert. Both corporate and small businesses are encouraged to purchase ads. To place an ad, contact Brad Segura at (303) 837-3500.

Montana

– Montana Economic Developers Association’s Spring Conference set for April.

The Montana Economic Developers Association (MEDA) will hold its spring conference on April 28-29, 2003, at the Montana Club in Helena. MEDA is a private non-profit organization created to increase the effectiveness of local economic development efforts by acting as a statewide resource for its membership. SBA District Director Michelle Johnston will be among those in attendance and participate in discussions centered around economic development resources throughout Montana – how to improve them, what can we do differently, and how to improve delivery of these services and resources. For more information contact: MEDA, 118 E. Seventh Street, Suite 2A, Anaconda, MT 59711. Phone: 406.563.5259 or Fax: 406-563-5476 or E-mail: [email protected]

North Dakota

– "Business Helps Business Conference" to be held at the Ramada Plaza Suites and Conference Center in Fargo on Tuesday, May 6th. Are you a lender or community leader sensitive to the needs of the community that you serve? Do you want to stay on the cutting edge of what finance programs are available to your clients? Are you a small business owner or potential small business owner with the desire to start, build or grow your business? Then this all-day event is for you! It will focus on business-related topics as well as numerous financing opportunities available statewide. Guest speaker, Linda Butts, from North Dakota Economic Development & Finance will address North Dakota economic issues. For more information, contact the SBA’s Marlene Koenig at (701) 239-5131 x 213.

South Dakota

– Export training class to be held in Sioux Falls. The South Dakota International Business Institute, Governor’s Office of Economic Development, USDOC, SBA and Northern State University will present a workshop on International Trade Considerations of E-commerce on April 30th from 8 a.m. to 4:30 p.m. at Augustana College in Sioux Falls. This seminar will provide critical information to businesses engaged in global on-line E-Commerce. The program is designed to enable companies that participate in the E-Commerce industry to better understand the issues, risks and decisions necessary to address the impact trade regulations and logistics have on the international components of the business. Cost of the workshop is $50 per person if payment is received by April 21st, and $60 per person if payment is made at the door. For more information – or to register – contact SDIBI-NSU at (605) 626.3149.

Utah

– Business to Business Expo set for Salt Lake City. The Utah District office, in conjunction with the Utah Business Resource Network, will host a booth at the Salt Lake Chamber’s annual Business to Business Expo. The Expo will be held at the Salt Palace Convention Center on Wednesday, April 30th, Thursday, May 1st and Friday, May 2nd. The Business to Business Expo is more than just the largest business event in Utah. It is a thriving marketplace where you can reach thousands of potential customers and other business professionals. For more information, please contact the SBA’s Loy Rasmuson at (801) 524-3207.

Wyoming

– "Young Entrepreneur Workshop" to be held April 11th and 12th at the Casper College, College Center, Room 217. This event targets local Casper high school students interested in entrepreneurship. The registration fee is $10 per person, which includes snacks and lunch. This workshop is limited to 44 students. Students will learn about the elements of a business plan from local business owners and community leaders. In breakout sessions, students will create their own business plan on a fictitious business and that plan will be judged by a panel of business leaders. The winning group will receive $500 in cash prizes. For more information on this event, please call the SBA’s Sharon Nichols at (307) 261-6500.

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Newsline Eight is circulated to our resource and lending partners by SBA’s Region Eight Office

721 19th Street, Suite 400, Denver, Colorado 80202.

Elton W. Ringsak, Regional Administrator

James R. Henderson, Regional Advocate

Christopher Chavez, Regional Communications Director

SBA: 50 Years as America’s Small Business Resource

Thank you for taking the time to read the April 2003 edition of Newsline Eight. Newsline Eight is the monthly newsletter from the SBA’s Region Eight Office in Denver. Our office covers the states of Colorado, Montana, North Dakota, South Dakota, Utah and Wyoming. This month, Dennis Chrisbaum discusses the benefits of exporting your products and services abroad. Over 10,000 individuals across America receive Newsline Eight.

If you have any questions, please contact the Region Eight Office at 303-844-0501.

Mick Ringsak, Regional Administrator

Jim Henderson, Regional Advocate

Chris Chavez, Regional Communications Director

Contact: Chris Chavez ([email protected])
April 2003 Phone: (303) 844-0501/Fax 844-0506