As an Indian entrepreneur, establishing a new business abroad can be both an exciting and a challenging opportunity. There are many budding SME business owners who dream of migrating to developed (and at times to not so developed) countries, but only a few can actually make it happen.
Evidence shows 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 a professional and a personal standpoint.
Starting a new venture abroad comes with lots of key advantages, especially for SMEs. There are many reasons why entrepreneurs should consider pursuing entrepreneurship as a migrant in a foreign country. Some of them are:
Leveraging untapped markets
By migrating abroad, small to medium-sized corporations can reap the benefits of expanding their businesses in overseas markets. With the availability of newer 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.
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 business owners. Hence, it makes sense to shift the business to or at least open up a branch or a 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 highly-skilled workforce.
Improving profit margins
Immigrating through an 'entrepreneur route' means business diversity, which leads to better profit margins. Expanding one's business in a foreign country puts less pressure in terms of pricing, thus making it quite easy to maintain margins. Overseas companies avoid delay in payments, thus making it the safest and most efficient way to conduct business. Also, margins are greater when the demand for products and services is high, technology is young, and learning opportunities are available.
Now, many countries offer unconditional visas or permanent residency status to high net-worth individuals, after they invest a specific amount of money. The money can be invested in government bonds, projects, property, or can be given to some authorities, which in turn gives the entrepreneur residency rights that can be upgraded to a citizenship after a few years. Most Indian entrepreneurs opt for these programs for the benefit of their children, as the top-notch facilities offered by these countries are crucial for their kids’ education and careers.
Hedging business risks
If a company’s business operation is only limited to one or two areas, what would happen to the company’s bottom-line during unforeseen events or natural disasters? Diversifying a company’s assets through international operations can balance the negative outcomes in any one market. Also, a company can introduce unique product and services, which further enhances the revenue for the organisation.
That apart, another big benefit of migrating through entrepreneur programs is the opportunity to obtain international exposure that can facilitate further expansion. Having a business overseas also gives a major boost to brand recognition, credibility, and respect among potential customers both in the domestic and the 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 business. Once the citizenship is granted, one can easily enjoy the unconditional rights to run a business without worrying about the cumbersome formalities involved.
Expanding a 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. Also, one needs to gain an in-depth knowledge of the rules and regulation of conducting a business in a foreign country.
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. If things were not clear, it would be advisable to consult a trusted immigration consultant who will guide one on what needs to be done to confirm your immigrant entrepreneur status, as also assist in related areas.
(The author is President, Abhinav Outsourcings Pvt. Ltd., an immigration and visa consultancy)
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Updated Date: Aug 23, 2018 15:40:14 IST