Global expansion is a never-ending initiative for every forward-looking company. In fact, 69% of U.K. businesses intend to grow their international footprint in the next three years. However, another research reveals that 58% of companies found it difficult to find and onboard talent from other countries.
So how to ace global expansion and achieve your business goals? Well, this intimidating challenge actually has a very simple workflow – find the right country, then the right talent. Let’s first discuss what you should keep in mind while finding the right nation for business expansion.
5 Factors to Consider While Choosing A Country
Every country presents a new set of responsibilities and regulations. The following five points are the most crucial points that can help you sort the right countries for better employability:
Registering a local entity
Registering a local entity is the first thing in mind when considering expanding to another country. However, this step is very time-taking, and its duration varies in every country. For instance, registering your entity in New Zealand might take a few days, while it can take more than a month in India. This duration gap is a direct result of the set up infrastructure, bureaucracy, and legislations of the country.
However, there are a few other tasks to be done after registering your entity, such as finding an office space, obtaining energy and water connections, supplying the necessary technology, etc. All these factors are very crucial as they cost you significant time and money.
Finding skilled talent
The global market presents multinational talent for all companies. An interesting aspect here is that some countries specialize in producing talent for particular industries. For instance, the APAC region produces highly-skilled programmers and customer success specialists.
If you decide to establish a permanent presence in that nation, hiring people there gives you access to a new network of contacts that will streamline the process and maybe lead to profitable commercial prospects.
To find your preferred talent across the globe, look at the countries that offer the best education for the job profile and have a huge number of active professionals. For instance, if you are testing a new product’s viability, you may require excellent salespeople.
Taxes and compliance
Employment and tax laws differ from country to country, much as the regulations for registering a firm. You cannot afford to disregard regulatory issues since they can influence anything from employing personnel to meeting business tax obligations. Companies operating in China, for instance, must pay large contributions to housing and social care programmes for employees, a practise uncommon for employers in most Western nations.
Also, you must take into account how simple it will be to obtain a visa if you decide to transfer current personnel to a new nation rather than acquire new workers.
Once more, this does not imply that employment and tax laws should prevent businesses from opening up shop in a new nation if the market conditions are favorable. To maintain compliance and reduce risk, you should constantly consider regulatory issues and consult with specialists when planning an expansion.
Culture of the country
Naturally, if a nation isn’t ready for the service or product you’re giving, it makes no sense to establish a business there. As a result, it can be extremely important to comprehend the host country’s consumer and corporate cultures while planning an expansion.
Conduct thorough research on the habits and culture of your target country. Consider how seamless it is to fit with the locals and understand their perspective.
Political and economic scenario
For any firm to succeed, political and economic stability is necessary. Even if a nation possesses the infrastructure, skill pool, and business culture necessary for your business to succeed, this could alter with an unexpected change in the economy or the political climate.
Government instability directly impacts the country’s business outlook, increasing their risk as a welcoming marketplace. Such incidents are very common in Africa, and there were similar predictions for the U.K. after Brexit. In the latter scenario, fortunately, the details of business expansion and taxes are ironed out well, so global companies have a good idea of how to operate in the U.K.
10 Best Countries For International Business Expansion In 2023
Now that you know how to sort the countries, ponder over the below 10 countries that are rated the best as per the aforementioned factors:
Singapore has made significant investments in improving its infrastructure and communications in order to keep up with the rapidly shifting economic landscape. Singapore is at the forefront of supply chain solutions in the current global market since the World Bank recognised the Republic as the top logistics location in the world. The nation is renowned for having one of the world’s most dynamic economies, a robust infrastructure, and regional and global high-speed connectivity.
Singapore also has a meager 2% unemployment rate and has recently introduced the Overseas Network and Expertise (ONE) Pass for providing multiple job opportunities to a single professional. Hence, the country has invested confidence in its talent pool to capitalize on its global appeal and establish itself as the world leader in talent and business prospects.
Sweden is the most innovative country in Europe and always competes at the highest levels of technology and management. It is investing 64 billion euros in expanding its highways, railroads, and metro system, and 150 billion euros will be used to build new homes and businesses. Moreover, there is a demand for foreign enterprises to innovate and develop and for international experience, creating significant prospects for contractors.
It is not unexpected that Sweden has one of the most educated workforces in the world, given that it is home to six of the best global universities. In addition, 47.2% of people in Sweden have a bachelor’s degree or more, and the Swedish are renowned for their strong work ethics and affluent consumer tastes.
Canada welcomes foreign investors into its vibrant, multicultural economy and provides significant advantages for corporate growth. Due to a diversified economy, low company taxes, prudent fiscal management, and financial controls, the nation has seen extraordinary progress. Profitability can also be predicted by having a strong banking system, a steady workforce, and a corporate environment that supports innovation and entrepreneurship.
Six of the top 200 universities in the world are located in Canada, which also has a high ranking for overall quality of life. Technology is also creating limitless opportunities for economic enterprises and is a major factor in the current infrastructure developments in the nation. Canada also has a highly-educated labor force, with 60.6% of the population graduating with post-secondary degrees.
Due to its strong economy (the 14th largest in the world), strategic location near developing Asian markets, political stability, and adaptable regulatory environment, Australia is attracting more and more foreign investment. Australia boasts a top-notch information and communication technology infrastructure and significant levels of investment toward innovation. In fact, a strong economy has led to an increase in immigration to Australia, and this growth has improved the country’s extensive infrastructure.
Other than major global corporations, Australia also boasts many prestigious universities. In fact, the nation is home to eight of the top 200 universities in the world, and 49.3% of the population has earned a college degree.
Some of the top multinational corporations in the world, including big league players in the pharmaceutical industry and the largest food and beverage firm, Nestle, are headquartered in Switzerland. Because of its favorable geographic location, the country provides simple land access and a well-developed automobile infrastructure network for international trade.
The country also offers the chance to study at some of the most prestigious colleges in the world (seven of the top 200 global institutions are located in Switzerland). Furthermore, 99% of the population is literate, and 48.8% have a bachelor’s degree or higher. A highly educated and multilingual workforce also allows prospective employers to hire bilingual employees. Suffice it to say the nation has numerous business benefits, including a prime location, world-class infrastructure, and a highly skilled and diversified labor population.
The United States has long been a prominent investment location and consistently ranks among the top nations in the world for its level of innovation, competitiveness, and business-friendliness. Although the state of the nation’s infrastructure varies, planned strategic infrastructure projects totaling $450 billion are anticipated shortly. Although only 47.5% of Americans possess a bachelor’s degree or higher, the United States is home to 63 of the top 200 colleges in the world and has one of the most productive labor forces in the world.
A business-friendly atmosphere, free marketplaces, and a good standard of living are some of the main highlights of the U.S. The nation is renowned for supporting and encouraging free enterprise, rivalry, and economic expansion. In fact, the United States has the world’s largest consumer market and a market-based, open economy. Moreover, legislative frameworks provide significant operational independence, simplifying and streamlining the business formation process.
Holland’s excellent business environment makes it the ideal location for high-tech firms to grow. A first-rate logistics infrastructure that includes airports, seaports, high-speed roadways, rail, and I.T. connectivity can benefit businesses. With 12 research universities and eight medical centers, Holland is renowned for offering top-notch education. Notably, 45.2% of people have at least a bachelor’s degree, and 90% of Dutch people can speak English, which is a significant draw for multinational businesses.
The United Kingdom is a major global investment destination in the continent. It is also a world leader in innovation and research, as the home to 33 of the top 200 universities. In addition, the U.K. continues to have the second-largest workforce in the E.U., and 52% of people have bachelor’s degrees or higher in education. Flexible labor regulations, low labor costs, high returns, world-class transportation systems, a robust communication network, and, of course, English, the language of business, is the primary language, are all benefits of doing business in the U.K.
Germany has traditionally been a popular location for foreign investors because it is Europe’s largest market and leader in terms of economic strength. In order to provide a direct and effective method of conducting business, Germany offers a first-rate transportation system as well as a superb energy and communications infrastructure. Germany is Europe’s largest consumer market due to its low unemployment rates, extremely stable consumer spending, world-class infrastructure, and strategic location. Twenty-two universities in Germany are included in the Top 200 Best Global Universities ranking, and 30.5% of people in the country have a bachelor’s degree or above.
Luxembourg is last on our list, yet it rates very well in terms of the global economy’s dynamism. It consistently ranks among the top nations in international examinations evaluating each nation’s level of competitiveness. Foreign investors see the government’s pro-business atmosphere and encouragement of financial market diversification as favorable points. Luxembourg also offers cutting-edge logistics infrastructures for communication and transportation, thanks to active encouragement from the government.
International Expansion with Multiplier’s EOR Services
While global expansion can be your key to the next major milestone, you must keep in mind that it is a tedious and time-consuming task. You might get lost in the compliance and payroll side of things without the help of an expert. Therefore, it is best to partner with an EOR while expanding globally and setting up international teams.
Multiplier’s EOR solutions aid you in onboarding candidates from 150+ countries with localized benefits, seamless payroll, faster contract drafting, and quick invoice generation that lets you overview your costs. We take care of your onboarding and compliance regulations so that you can focus on your day-to-day operations and other core competencies.
Connect with us to better understand how we can help you grow beyond borders.