Idaho is the 38th most populated state and the 14th largest in America by area. Despite its relatively low population, Idaho has been ranked as one of the fastest-growing states in income rates and the third-best state for starting a small business, according to KTVB.
All of this has contributed to Idaho’s rapid 4.2% GDP (total gross domestic product) growth in 2023, bringing its GDP to $94.1 billion, with 3.4% coming from the state’s exports. With such growth and opportunity, the Idaho State Government’s commercial division, the Idaho Department of Commerce (Idaho Commerce) plays a critical role in helping expand the state’s economy, allowing businesses to grow and establish a global footprint.
According to Tina Salisbury, Idaho Commerce’s business development manager, the department aims to create a business-friendly environment that fosters job growth, supports existing companies, strengthens communities and promotes Idaho both nationally and internationally.
Idaho Commerce was created on March 15, 1955, by the Idaho Legislature with the goal to develop and promote the state’s resources and industries and promote tourism to and within the state.
Jack Marr, a Boise State professor of International Business, emphasized the department’s vital role.
“Small and medium-sized businesses that don’t have the resources or information about expanding their business can use free or subsidized services offered by Idaho Commerce,” Marr said.
One key program operated by Idaho Commerce is the State Trade Expansion Program (STEP) Grant, partially funded by the U.S. Small Business Administration.
“The purpose of the STEP Grant is to increase the number of small businesses that export, increase the value of exports, and increase the number of small businesses exploring significant new trade opportunities,” Salisbury said.
A portion of the grant is allocated to cover the cost of services like international market research and matchmaking provided by the U.S. Commercial Services (USCS), the international trade branch of the Federal Department of Commerce. The two agencies maintain a strong working relationship, co-located within the Joe R. Williams building in Boise.
Hank Ebert, a former employee of Idaho Commerce says, “the close working relationship between Idaho Commerce and the Federal Department of Commerce pays dividends, educating businesses on opportunities and advocating for international trade support”
The Idaho District Export Council (IDEC) is another valuable resource for Idaho businesses. IDEC is a statewide board of public and commercial sector experts that offers small and medium sized enterprises (SMEs) advocacy, education and export consultancy.
Their mission is to complement the export promotion efforts of the U.S. Commercial Service by counseling businesses on the exporting process and conducting international trade education.
“The IDEC is a fantastic resource that helps SMEs by connecting them to opportunities, ensuring they’re prepared, and helping promote Idaho exports to the world,” Marr said.
Another asset Idaho Commerce offers to help SMEs navigate international business opportunities is its three international trade offices located in Mexico, Taiwan and Japan. These offices offer critical support to businesses seeking to expand into Latin American and Asian markets.
These trade offices have local market knowledge, an extensive network of local businesses and services that could offer potential partnerships with Idaho businesses looking to enter their respective markets. Services at these trade offices include market research, regulatory guidance, matchmaking and logistics support, which help reduce barriers for SMEs entering new markets.
“Idaho’s trade office managers provide unmatched expertise and knowledge of international markets to assist Idaho businesses in exploring international business opportunities” Salisbury said.
Idaho Commerce’s contribution to the growth of Idaho-based companies has increased the state’s international recognition. According to Idaho Commerce’s website, since 2003, Idaho’s exports have grown by 70%, from $2 billion to $3.4 billion in 2020. With the help of Idaho Commerce, Idaho’s businesses export to a total of 153 different countries around the world.
“The worst thing an SME can do while exporting their product is going to a new market without proper preparation,” Marr advised. “The support provided by Idaho Commerce can connect you with contacts and free resources to ensure success.”
For more information, visit Idaho Commerce’s official website.
