How Small Is Too Small? Firm Size as a Barrier to Exporting from the United States

The purpose of this paper is ask whether there is a minimum size that firms must achieve to take advantage of the benefits of exporting from the United States. An analysis of 2,822 firms in 49 different industries in South Carolina, a rapidly growing export–driven state, was conducted to address this question. This paper builds on the contributions of previous research in the areas of small to medium–sized enterprises (SMEs) and export success and SMEs in the export development process. Analysis of manufacturing exports from South Carolina indicates that firm size serves as a necessary as well as a sufficient condition for export success among small manufacturing firms. Reasons for this are discussed, and implications for managers and policymakers are offered.