For many companies, there comes a point when they’re ready to go global and reach a new market.
There are many benefits that come from entering new markets. From gaining a competitive advantage to accessing a more diverse range of talent, expanding your business abroad can increase profits whilst cutting costs.
However, before deciding to make the venture into another market, it’s important to ensure you know which one is right for your business. There are many options, whether you’re wanting to go into Europe for its great location and stable business environment, or to the US, which has one of the largest economies in the world. Each country has a different set of pros and cons.
To help you make the right decision, we’re looking at the top five most popular destinations for global expansion, as chosen by our readers.
Italy – 5th
Alongside its reputation for unrivalled food, art and fascinating history, the country offers an attractive economy to do business. Italy is one of the largest manufacturing countries in Europe and hosts a highly educated, innovative and talented workforce. The country also has an established R&D infrastructure and pro-investment culture, making it a perfect place for growing businesses.
Another reason for its favourable place in our reader’s top countries for global expansion is that the country has an incredibly innovative business culture. It is currently developing networks of innovation incubators and science and technology parks connected to universities and local development agencies. This helps contribute to its highly educated workforce, who are available to employers choosing to do business in the country.
The country also boasts an impressive economy, which is the third-largest economy in the eurozone and eighth largest in the world. Its great location on the southern edge of Europe is very helpful for trading. Its transportation network includes 6,800km of motorways, 1,000km of high-speed railways and ports in strategic locations.
Germany – 4th
It’s not difficult to see why Germany is so popular amongst our readers. The country offers a stable political and economic climate for expansion. With a high-ranking economy, consumer market, and workforce combined with its strategic position in the European Union (EU), the country is a wise choice for many organisations looking to expand their marketing into the country.
It’s the largest economy in the European Union and the fourth largest in the world after the USA, China, and Japan. The German economy is highly innovative and focuses on exports, with several well-known international brands including Volkswagen, Mercedes, BMW, Adidas, Siemens, and Deutsche Bank, calling it their headquarters. The German economy also houses a large portion of specialised small-to-medium-sized businesses and oversees the fast growth of many innovative start-ups.
These accolades, coupled with Germany’s stable trading economy, offer a highly developed political and economic framework for companies looking to do business in Germany. Germany’s position in the European Union also opens a diverse broad European market for Germany businesses. International businesses can enter the German and European market with the use of a PEO or EOR model.
Canada – 3rd
Considering it’s one of the friendliest countries, attracting tens of millions of tourists every year, it’s no wonder it's one of the top countries for global expansion. The county’s business environment is heavily European-influenced, and its highly developed mixed economy represents this.
As the second largest country in the world, Canada’s landscape is extremely diverse. The country has the 9th largest GDP by nominal, and the 15thlargest by PPP in the world. It’s also fortunate to have the third-highest total of natural resources, which make up one of the country’s largest industries.
If you’re in search of a skilled workforce, Toronto also has you covered. The city is homed to fast-growing technology hubs. It has the fourth largest in North America and the city is home to over 5,200 start-ups and 15,000 tech companies. These focus on artificial intelligence, cybersecurity, augmented and virtual reality and blockchain. The government further attracts tech companies by providing incentives and funding for start-up companies.
Expanding business into Canada also offers access to a large market, a population of 38 million to be exact. Its location also means easy access to the US, where there are a further 327 million potential customers. Canada's trade agreements provide further benefits to businesses expanding into the country. The country is part of the Comprehensive Economic and Trade Agreement (CETA) with the European Union and the twelve-nation Trans-Pacific Partnership (TPP).
UK – 2nd
The UK brings businesses a wealth of opportunities for global expansion. London is the financial hub of the world with some of the largest financial establishments existing in the city, including the London Stock Exchange and the Bank of England.
Another contributing factor for its popularity is the UK’s corporation tax rate, which is the lowest in the G7 (which comprises the UK, Canada, France, Germany, Italy, Japan and the US). The country has double taxation agreements with several countries. For US businesses, this allows freedom to trade with other countries without the worry about doubling the tax on the same income.
The country also has an incredibly talented and skilled workforce, housing four of the top ten universities. One of the biggest benefits of doing business in the UK is its ease of doing business. According to the World Bank, the country ranks very highly compared to other countries. Ease of trading across borders and registering property are just some factors that determine the countries ranking.
The country is home to the second-highest amount of professional software developers in Europe. The total currently stands at 849,000, just behind German at 901,000. Further to this, it ranks 5th in the world for access to growth opportunities. So, when recruiting your workforce, you can be sure there will be no shortage of skilled applicants.
USA – 1st
As the world’s largest economy, it’s no surprise that the highest portion of our clients have chosen to expand their business into the country. The USA is the home of Silicon Valley, and most businesses found, are at the top of Forbes’ lists, however, due to differing employment laws between states, many organizations often utilise PEOs and EORs to place employees all around the country.
Businesses expanding into the country gain access to its highly developed, mixed economy. Which is the largest by GDP and network. The country is also a hub for innovation, with almost half of all businesses in the Fortune 100 calling it their headquarters. The country is at the forefront of tech in areas including, pharmaceuticals, biotech and IT. Further to this, it has free trade agreements with 20 other countries, providing businesses with access to millions of consumers. And to top it off, household spending is the highest in the world, accounting for nearly a third of global household consumption.
How to choose the right country for your business
Deciding where to take your business in 2022 can be challenging. It’s important to take time to decide what your priorities are, and which country will be more effective in achieving your goals.
Procorre Global operate in over 120 countries worldwide and can help your company set up in a country without an entity. Get in touch today to find out more.