Many small business wanting to grow by selling to customers in other countries learn the costs for trade shows, international travel, insurance, and market research can be an obstacle.
Delaware has a program — The Compass Grant— that helps cover those costs.
Administered by Export Delaware, a division of the Delaware Department of State, the Compass Grant offers Delaware small businesses up to $10,000 per year for international business development activities
. Grant-funded activities range from exhibiting at trade shows to overseas customer visits to purchasing EXIM Credit Insurance, which helps protect businesses against the risk of not getting paid by foreign buyers.
In the last fiscal year, the program awarded $85,355 across 29 grants and the return was impressive, according to the state. Participating companies reported $10 million in new international sales as a direct result — that’s $117 in new revenue for every $1 invested by the state.
Among the success stories cited by the state: An aviation company used the grant to cover EXIM Credit Insurance premiums and reported $4.6 million in new in
ternational sales. A manufacturer exhibited at a trade show in Germany and reported $100,000 in new sales. An accounting firm attended a trade show
in Japan, signed new client agreements, and reports $15,000 in new sales
In addition to the sales results, recipient companies told the state that they hired 21 new employees to keep up with the growth, and retained 166 more — and they project $21 million in new sales over the next 18 months.
“Delaware small businesses depend on this program,” said David Máthé, director of International Business Development for Delaware.
Máthé said that in just the first few weeks of the new funding year, applicants have already requested nearly half of what was awarded in all of last year.