TradeUp Capital Fund recognizes the importance of Small and Medium-Sized Enterprises (SMEs) as the cornerstone of the U.S. economy. SMEs, firms with fewer than 500 employees, make up 99 percent of all firms, employ over 50 percent of private sector employees, and generate 65 percent of net new private sector jobs.
SMEs looking to export must emphasize American expertise and comparative advantages, namely innovation in technology and human capital, if they want to be competitive in the global marketplace. TradeUp's partner HSBC found that at the sector level, “machinery and transport equipment are set to play the biggest role in driving long-term growth in US merchandise exports, contributing close to 45% of the projected increase in the decade to 2030.”
This suggests that U.S. skill and proficiency in upscale manufacturing and the continued investment in R&D and technological innovation will help to retain a leading position in a highly competitive international market.