30-06-2025
How Small Businesses Are Preparing For Potential Global Volatility
Greg Hewitt, CEO of DHL Express U.S.
Companies across the country and around the world are facing rising operational costs and economic uncertainty, including concerns about tariffs and consumer confidence. While this combination of factors may not seem like a recipe for growth and bold action, many U.S. small businesses are doing just that—seizing new technologies, tapping into global markets and using their agility to adapt and succeed.
Results from a recent survey by my company of hundreds of U.S. small- and medium-sized enterprises (SMEs) may offer some encouragement and strategic direction for your own business as you navigate a complex economic environment, one largely defined by the uncertainty of ongoing global trade negotiations and the threat of rising tariffs.
What The Survey Says
Not surprisingly, most SMEs point to operational costs as the top challenge this year, with 57% of respondents citing increasing costs as the biggest issue, and 10% cited talent acquisition and management as the greatest concern.
But instead of hunkering down and waiting for market outlooks to improve, most small businesses said they were taking concrete, proactive steps to scale up and manage forward to achieve growth. Those steps include laser-focused cost control (28%), smarter supply chains (15%) and market expansion efforts (18%). In fact, 68% of responding SMEs say they are meeting or beating their financial expectations today, even in a difficult economy, by embracing these tactics.
Despite trade policy changes and tariffs presenting difficulties, most small companies are still planning to pursue global trade as part of their overall business strategies. In other words, they are mitigating risks by diversifying their market presence. European markets are considered key for a majority of those surveyed (35%), followed by Asia (28%) and Latin America (25%). At the same time, data shows that India, Vietnam and the Philippines are expected to lead global trade growth, and so these markets offer critical opportunities for SMEs looking to de-risk their domestic dependency.
What Small Businesses Can Do Next
Since cost control and operational efficiency are so critical, many small businesses are researching how they can better use technology to enter new markets with minimal expenditures. They're prioritizing three key areas: low-cost but reliable international e-commerce platforms; AI integration to enhance customer service and fulfillment; and logistics technology to manage shipments, navigate customs complexities and calculate duties and taxes more accurately.
In fact, for your company, sound research and due diligence can make all the difference on multiple fronts. When it comes to technology, your business should examine how new tools, including AI-powered solutions, can help meet the e-commerce challenges that come with global markets.
Looking Beyond U.S. Borders
This includes the language needs of international customers as well as the creation of marketing and website content that is culturally appropriate to the country where you are doing business. AI-powered chat services and AI-powered product research could also provide assistance in meeting customer service needs more efficiently.
It has always been true that entering or expanding into new international markets requires careful planning and research. Today, this core business principle is more applicable than ever. By carefully examining the cross-border markets you aim to target, understanding how your products align with these markets and analyzing specific barriers to trade (including potential new tariff threats), your company can minimize costly moves into unprofitable regions.
Your in-depth research should look at market conditions, consumer (or business customer) demand or interest in your products, competition, e-commerce usage trends and current or pending trade rules and regulations.
Tap Into Trusted Resources
While the issues involved are complex, multiple resources are available to help small businesses acquire and interpret relevant information. The U.S. International Trade Administration, the United States Census Bureau and the U.S. Small Business Administration each offer access to detailed market intelligence, strategic guidance and new market trends. U.S. Customs and Border Protection provides information about importing and exporting, including explanations of current free trade agreements and foreign regulations.
Choosing The Right Transport Mode For The Job
Your business will also need to thoroughly research logistics options in order to achieve efficiency, avoid costly compliance errors and meet customer expectations. An experienced logistics partner can provide support and information on specific regulations by country, offer smart warehousing options and provide tools to track shipments, calculate duties and taxes that keep customers informed in real time.
Whether exporting or importing, it's critical to understand what mode of transport will be best for certain products. Your logistics partners can assist in making this determination, which will depend on time constraints and needs, as well as budgetary considerations. For e-commerce companies exporting directly to consumers, offering expedited shipping options will be critical to compete and meet the growing demand for quick delivery.
In the face of big economic changes, small businesses across the U.S. are looking to adapt and grow with a focus on global trade. To keep up with the competition, it's time to explore your own international trade options.
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