Advantages Of SMEs Going Global – Jignesh barasara
It is seen that usually, the large enterprises have a global presence. Also, it may due to this fact that a startup took the risk of expanding crossing the borders that the company would have attained this status as a huge enterprise feels Jignesh Barasara.Going global for a small enterprise is not easy and not everyone’s cup of tea. So then the question at hand is should the SMEs go global and if yes which are these companies. The experts feel that if you have the potential and the right contacts and also funds it would be a good move to cross the borders and establish yourself and find customers in the other markets.
There are many benefits because of this kind of a move for any enterprise. Let us list a few.
Migration helps leverage untapped market. By such a migration medium-sized and even small companies can get a lot of benefits by way of expansion of their business in the markets abroad. There will be many more possibilities available. The business may be able to offer more appealing products and services that are not available in that market on the foreign shores. Thus a new customer base can be created. When a company is offering a certain kind of product and service not available in that country the government may offer some incentives. This will go a long way in boosting your enterprise. Also, it may generate employment for the local people so you will get good support both from the people and the government.
You may get the benefit of enjoying the ease of doing business. Certain countries have strict rules and it is not very conducive to start a business with ease. There are certain government policies, stringent tax regimes, construction permits and the like that may cause certain hurdles. All these may not be found on foreign shores. So it would make sense to migrate to the country that gives you better opportunities rather than waste your time and energy seeking permissions and grants for years together.
Profit margin can be higher by migrating the business to other countries. The pricing and other terms of sales may allow you to price your product higher thus bringing more profit for you. Then more the profit earlier you can realize the return on investments. Also, there may not be much delay in payments so there won’t be many financial hassles to be faced. This increases your financial conditions whereby you can work on your project and products with more ease and offer better quality products and services. You may not need to compromise on any count thus you will get a competitive edge helping you to garner more customers.
All these lead you to increased productivity and more profit and better prospects for growth. Soon you will be known as an international brand as you can then have a bigger chance to diversify and capture more markets.