Savvy SME Guide to Global Business Expansion

Entering the international business landscape can be both exhilarating and intimidating for SMEs with limited resources. Partnering with an EOR solution for global expansion can be the perfect strategy for quickly getting your business operations up-and-running abroad, with minimal risks and challenges. Read more: Savvy SME Guide to Global Business Expansion

Savvy SME Guide to Global Business Expansion

Multinational business operations have long been the purview of giant organizations with deep pockets for branding and marketing.

But in the 21st Century, technology has dramatically changed the global business landscape, opening doors for small and medium enterprises (SMEs) to take their business operations abroad.

Navigating the global business landscape can be costly and time consuming for smaller entrepreneurs, but you don’t have to go it alone. An Employer of Record (EOR) solution provides global expansion tools and local expertise to SMEs, to help you quickly and easily get your business up-and-running in a multitude ofcountries around the world.

Use this convenient Guide to learn more about global business expansion, and discover convenient and affordable solutions available for mitigating compliance and taxation risks, and optimizing international business growth.

Challenges Faced by SMEs When Expanding Abroad

Venturing into a foreign business landscape can be at the same time exhilarating and intimidating, especially for smaller companies with limited resources to allocate for global expansion. You have to carefully weigh your risks against potential gains, with little room for error or loss.

Some of the biggest risks faced by SMEs when expanding abroad include:

  • Cultural and language barriers. For your company to succeed on the global business landscape, you need to be cognizant of local laws and customs, and be respectful of local culture. In many countries, like France and Poland, the inability to communicate in the local language can pose serious barriers to launching and conducting business operations.
  • Risks of non-compliance with local labor laws. Many companies make the mistake of assuming that foreign countries’ labor laws are similar to those at home. But most countries have unique laws for regulating business practices, and many impose stiff penalties on foreign enterprises that fail to comply.
  • Immigration challenges for your expat team. If the nature of your business demands feet on the ground from your home office, you will need to dig into the requirements of your target country, to ensure your expat employees meet all legal requirements for immigration and residency.
  • HR management and payroll issues. Most countries have clearly defined regulations regarding human resources and payroll, and rigid laws governing employee termination. This can place an overwhelming burden on your HR team to ensure compliance and avoid penalties in a distant foreign country.
  • Complexities of tax withholding and remission. Taxes are always a pain point for SMEs, who often struggle to balance profits, losses and tax compliance. Foreign countries often have multi-tiered taxation systems, and complex and rigid requirements for international employers.
  • Challenges related to diversity in hiring. In recent years, countries around the globe have modified their labor laws to accommodate disabilities, gender issues, issues related to race and religion, and issues specific to women. Those laws heavily favor job candidates and employees, and your company can easily be targeted for discrimination by anyone who chooses to file a lawsuit. Targeted companies can find themselves in a quagmire of lawsuits that disrupt business and quickly deplete resources.
  • Difficulties associated with business entity establishment. Some of the world’s most coveted locations for setting up business have some of the most complex and difficult-to-navigate processes for establishing a business entity. Without a local advocate who knows the ins and outs of in-country business establishment, your company could be doomed to months of bureaucratic red tape that eats up all your resources.

How a Global EOR Solution can Streamline Business Expansion and Mitigate Risks

SMEs often have limited resources when expanding abroad, and you cannot afford to take costly risks. In addition, recent lockdowns, travel restrictions and mandates have amplified the risk of venturing into new territories where conditions can be volatile.

For many SMEs, a global Employer of Record (EOR) service provider offers the perfect solution for companies that are not yet ready to fully commit to an established business entity in a foreign country.

A global EOR solution provides numerous benefits for SME global expansion:

  • Hiring and HR management. Onboarding and compensating the best talent is key to business success. A global Employer of Record hires your global workforce on your behalf, manages payroll and benefits, and takes care of employee termination, easing the burden of your HR team at home.
  • Tax withholding, filing and remittance. Tax issues are always a key pain point for any business, and complying with taxation laws in a foreign country is critical for international businesses. A global PEO works with local partners, to ensure that employee taxes and contributions are withheld and remitted according to local taxation laws.
  • Assistance with expat immigration. Immigration laws vary widely from one country to the next, and the immigration process can be difficult to navigate in some locations. Your global PEO can assist you with sponsorship, documentation and form filing, so you can get your expat team on the ground in record time, with minimal hiccups.
  • Guidance on local culture and customs. An international EOR provides local support for your personnel, to ensure they transition smoothly into their new country of residence.
  • Assurance of full legal compliance. With a global PEO as your partner, you never have to worry about being in violation of local compliance requirements. Avoid risks, fines and penalties, and establish your reputation as a trusted local brand.
  • Stress-free invoicing. Leave the details of HR management to your EOR partner, and pay a single monthly invoice, no matter how many countries you choose to expand your business to.
  • Round-the-clock support. Your global EOR has international employment experts available 24/7 to answer your questions and provide support for your team.

Partnering with a Global Employer of Record

A global EOR solution such as Express Global Employment can save you time and money, and expedite the time it takes to build your team and get your business operations underway. In many cases, you can hire and onboard some of the world’s top talent in a matter of days.

Partnering with a global employer of record is a savvy way for SMEs to test the international business waters, with minimal risks and challenges. Your EOR does the heavy lifting of HR management and in-country compliance, so you can focus on growing your business.

 

 

Read more:
Savvy SME Guide to Global Business Expansion

Source : Business Matters More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

Inflation steady at 3.1% ahead of predicted surge in the cost of living

The rate of inflation crept down slightly to an annual rate of 3.1% in September, according to official figures which are tipped to surge ahead in the months ahead and force the Bank of England to intervene. Read more: Inflation steady at 3.1% ahead of predicted surge in the cost of living

Inflation steady at 3.1% ahead of predicted surge in the cost of living

The rate of inflation crept down slightly to an annual rate of 3.1% in September, according to official figures which are tipped to surge ahead in the months ahead and force the Bank of England to intervene.

The Office for National Statistics (ONS) said that rises in the cost of fuel last month, reflecting the impact of the delivery difficulties that sparked panic-buying, and wider increases across the economy were offset by falling restaurant and hotel costs as the effects of last year’s Eat Out to Help Out scheme fell away.

Economists had predicted the Consumer Prices Index (CPI) measure would remain at 3.2%.

But they warn that October’s figure is set to shoot up – driven by the 12% leap in the energy price cap at the beginning of this month and wider increases in the cost of goods and services linked to the COVID global supply chain disruption and worker shortages – the latter made worse by the government’s post-Brexit immigration rules.

Please use Chrome browser for a more accessible video player

Commenting on the statistics,  Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “the dip in inflation reflects temporary data distortions rather than the reality on the ground.

“The slowdown was largely due to strong base effects caused by dining out costing less last month in comparison with September 2020, when prices increased following the end of the Eat Out to Help Out scheme.

“A renewed inflationary surge is expected in the coming months with the increase in the energy price cap, partial reversal of the VAT reductions for hospitality & tourism and persistent supply chain disruption. This is likely to push inflation above 4% by the end of 2021.

“Rising inflation could disrupt UK’s economic recovery by eroding consumers’ spending power and squeezing firms profit margins and ability to invest.

“While inflation is uncomfortably high, the Bank of England must hold its nerve on interest rates. Raising rates at a time of escalating cost pressures and looming tax rises would severely undermine an already fragile recovery.

“Although global price fluctuations aren’t typically something in the UK government’s direct control, more needs to be done to help businesses keep costs down and stay competitive. This should include a moratorium on all policy measures that increase upfront business costs for the remainder of this parliament.”

On the impact of September’s CPI inflation rate on firm’s business rates bills in the next financial year, Suren added: “Despite enduring the deepest recession on record, businesses are now facing a punishing rise in business rates in the next financial year because of soaring inflation.

“The chancellor should therefore use the upcoming budget to abandon the up-rating of business rates for at least the next financial year to avoid severely aggravating already diminished business cashflow and further damaging our high streets and town centres.”

Business Matters got the opinion of a number of business owners and entrepreneurs on the OPNS announcement: \Jay Mawji, Managing Director of the global liquidity provider IX Prime, commented: “Britain’s inflationary clouds continue to gather – but so far the storm has yet to break.

“The cost of living rose by a brisk 0.3% in September alone as fuel prices picked up sharply. Prices at the pump are now at their highest level for eight years.

“But the annual rate of CPI eased slightly, helped in part by some distorting effects from this time last year.

“At 3.1% CPI is still well above the Bank of England’s 2% target, and the Bank’s Governor this week dropped his biggest hint yet that he is preparing to act to tame inflation. But September’s surprise easing of inflationary pressure may now shift the Bank’s timings.

“A chorus of increasingly shrill warnings on inflation from businesses in all sectors, coupled with the Bank’s hawkish talk, had led some marketwatchers to predict a rate rise could come as early as November.

“But today’s softening of inflation, deceptive though it may be thanks to base effects, means the chances of a rate rise at the Bank’s next MPC meeting in a fortnight’s time have reduced.

“This is bad news for savers and won’t help the Pound, which had been steadily creeping up as traders priced in ever more likelihood of an interest rate rise. For November at least, all rate rise bets are off.”

Jamie Rackham, founder of Facebook group, NOT ON AMAZON, where nearly 150k indie makers sell their products for free: “With energy bills rising, inflation stubbornly high and tax rises to come, every penny counts. As a result of this, our community has grown faster than ever over the past month as members can promote their businesses and advertise their work on the page at no cost, which leaves more money in their pockets.”

Gillian Ferguson of Scotland-based Twisted Empire Bakes: “The energy crisis and high cost of living are piling ever more pressure on top of already drowning small businesses. One of my main ingredients has gone up by 25% and I supply the hard-hit hospitality sector so can’t put my prices up. I bake for a living and I’m worried about keeping the ovens on. Happy Brexit.”

Scott Gallacher, a Chartered Financial Planner at Leicestershire-based independent financial advisers, Rowley Turton: “Due to concerns about high inflation and potential labour shortages, we brought our annual wage rise forward to keep our staff happy. We are planning to absorb that cost rather than increase our fees. I’m not sure the Government raising interest rates would help, as inflation seems to be mainly due to supply issues rather than excess demand.”

Jez Lamb, founder of the Wirral-based craft beer marketplace, Beers @ No.42:” The answer to high inflation is simple for small business owners, right? Just whack up your prices to combat it and all’s well. Sadly that doesn’t work, as it risks losing you customers. It’s alright for the big boys as they have the financial strength to keep their prices low, but small business owners, as ever, have to take a hit on their real-world income and spending power.”sq§

Robert Walton, Managing Director of commercial interior specialist,  The Lindhurst Group”The economic recovery is too fragile to tolerate increased interest rates at this stage. While inflation is unhelpful, there needs to be institutional confidence to drive underlying growth. Unfortunately, we will be increasing prices for the first time in three years as margins cannot be eroded further if the business is to develop and invest for the future.”

Debbie Porter, Managing Director of Bakewell-based Destination Digital Marketing: “All costs are on the rise but for small businesses the decision to increase their own prices accordingly is a tricky one. At some point there may be no choice, but retaining customers is paramount at this time and it is a decision fraught with danger for small business owners.”

Read more:
Inflation steady at 3.1% ahead of predicted surge in the cost of living

Source : Business Matters More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.