How extend operations beyond national boundaries through risk management?
Most SMEs which want to operate abroad wish conquering growing markets. For a successful implementation it is necessary to fulfill several criteria:
- a critical size
- innovative products, which may interest the intended market
- qualified and if possible personal knowledge of the culture of the target country
- a solid financial structure, which can withstand setbacks, at least at the beginning of the implementationfaire appell
If all these criteria are met, it is necessary to take time to properly build the project, and to call upon professionals and organizations that will be able to support an establishment abroad.
First of all it is necessary to do a very thorough country analysis to know the culture but also the legal and regulatory framework. The socio-cultural study is often overlooked, yet it is an essential constraint. Indeed, untrained expatriate staff could be an important cost for society. Finally, it is useful to know the logistics facilities, the population’s purchasing power, and also where to find skilled labor. Find a local partner of trust can be a real asset to expand abroad while limiting the risks.