Nowadays, more and more youngsters are approaching entrepreneurship as a bright career. In recent times, the startups by young entrepreneurs have got enormous success and huge funding from various resources. Initially after graduation or post-graduation, they are setting up a small enterprise of their own and finally aspire to go abroad to set up their business for a comfortable and hassle-free life alongside the decent income. As a budding Indian entrepreneur, establishing a new business abroad can be an exciting as well as a challenging opportunity.
There are many business owners of Small Medium Enterprises (SMEs) who dream of migrating to developed (and at times not so developed) countries, but only a few of them can actually make it happen. There is much evidence available that investing abroad is a significant factor for an entrepreneur to be successful in the long run. In fact, it is often considered a necessity due to its remarkable outcomes both from professional and personal fronts. Starting a new business venture abroad comes with lots of key advantages. There are many reasons why entrepreneurs should consider pursuing entrepreneurship as a migrant in a foreign country. Some of them are described below:
Leveraging untapped markets through migration: By migrating abroad, small to medium-sized corporations can reap the benefits of expanding their businesses in overseas markets. With the availability of new possibilities, these businesses may offer more appealing services and products that are not present in the existing foreign market, hence create a new customer base. What’s more, the nation’s government may also provide certain incentives or benefits for the business establishment as it will boost the economy and generate employment.
Enjoying ease of doing business through migration: One of the biggest advantages of going global is that a new country will offer a supportive business environment to conduct a business. In India, there are certain restrictions in terms of government policies, construction permits, and stringent tax systems as well as other regulatory policies that pose some challenges for the business owners. Hence, it makes sense to shift the business to or at least open up a branch or subsidiary office —through migration —in a country that doesn’t necessarily curb its ability to generate profits while offering advantages in the form of competitive tax systems, favourable economic climate, better quality of products and a highlyskilled workforce.
Earn better profit margins by migrating overseas: Immigrating through an entrepreneur route means business diversity, which leads to better profit margins. By expanding your business in a foreign country puts less pressure in terms of pricing, thus making it quite easier to maintain margins. Overseas companies avoid delay in payments, thus making it the safest and most efficient way to conduct the business. Also, margins are greater when the demand for products and services is high, technology is young, and learning opportunities are available.
Benefit of immigration status through investment: Many countries offer unconditional visas or permanent residency status to high networth individuals, once they invest a specific amount of money. The money can be invested in government bonds, projects, property, or given to some authorities, which in turn give the entrepreneur residency rights which can be upgraded to citizenship after a few years. Most of the Indian entrepreneurs opt for these programmes for the benefit of their children as the top-notch facilities offered by these countries are crucial for their kids’ education and professional career.
Hedging business risks through diversification via immigration: Diversifying a company’s assets through international operations can balance the negative outcomes in one market by successfully operating in another. Also, a company can introduce unique product and services, which further enhances the revenue for the organisation.
Promoting international exposure and expansion via immigration: Another biggest benefit of migrating through entrepreneur programmes is the opportunity to have an international exposure that can facilitate even more expansion in further. Having a business overseas also gives a major boost to the brand recognition, credibility, and respect among the potential customers both in domestic and international market.
Supportive business climate: There are times when business owners face difficulties in running operations in their home country. That is why more and more entrepreneurs are moving abroad where they don’t have to deal with complicated legal formalities or bureaucracy to seamlessly conduct the business. Having a favourable business environment plays a pivotal role in getting rid of too much of paperwork that comes when setting up a new business in a foreign land. Once the citizenship is granted, one can easily enjoy the unconditional rights to run a business without worrying about the cumbersome formalities involved.
Expanding business to other global markets has its own distinct advantages; however, the decision should be taken with a lot of consideration and homework. One needs to have a clear understanding of immigration rules and other visa formalities that need to be completed while going through the process. Apart from this, a prospective entrepreneur must gather knowledge about the local culture and work on unique ideas to make the most of this opportunity and ensure that the international move is rewarded with great returns.
The writer is president, Abhinav Outsourcings Private Limited.