Introduction
For starting every business
requires research and a good market. Sometimes for a small business startup
needs a proper survey about how the economic forecast is of the country for the
upcoming year. Labor market regulation is also considered in compiling the best
country to open a small business. The highest ranking (lowest numeric value)
means that the above indicators are conducive to business operations.
According to some articles the growth
of world economy is slowing down. As a result of this international market is
more heated and new starters should consider highly on the combination of risks
and opportunities. These decisions should be based on the SWOT analysis that
consist of the strengths, weaknesses, opportunities and threats in entering a
new market.
SWOT Analysis
SWOT analysis has become mandatory for
every business at the beginning or in the planning process. It helps in
understanding the strengths, weaknesses, opportunities and threats to the business
in the particular business. It can be held responsible for the failure or
success of the business.
Strengths
-
The business should be able to start with very
low cost.
-
The country should be adaptable for the
business.
-
They should be able to innovate and create new
products and services more rapidly.
-
The business should be able to response to
customer needs quicker that large companies.
|
Weaknesses
-
The owners has to bear high cost of
production.
-
Setting a small business in a new country, it
might be difficult to raise funds for the business.
-
Small business might face challenges in get
high end projects.
-
Obtaining permission of license from the
industrial development of the country might be difficult for a new small
business.
|
Opportunities
There will be more chances to expand their
business.
- They can take advantage of the government
policies and opportunities they have implemented.
|
Threats
-
New tax legislation of the country
-
Small businesses might not receive sufficient
loan easily.
-
Cultural changes might affect the product
growth.
|
Data Analysis
Some countries are contracting in
the phase of world economic cycle, but there are countries that are having
significant growth rate. For analysis 10
countries were selected according to the (Bidoia, 2019) . They were analyzed
whether the following conditions were met.
- Average annual growth rate of GDP above 4% in the
period 2019-2020 (International Monetary Fund, April 2019)
- Average annual growth rate of imports in euro above
4% in the 2019-2020 (StudiaBo, April 2019)
- Quality imports (high and medium-high range) above 5
billion euro in 2018 (Ulisse Information System)
Country
|
Imports
in euro
(CARG
2019-20)
|
Gross
Domestic Product
(CAGR
2019-20)
|
Quality
Imports: Liv. 2018
(mld
euro)
|
Malaysia
|
4.3
|
4.7
|
51
|
Panama
|
4.4
|
5.7
|
6
|
Indonesia
|
5.5
|
5.2
|
15
|
Iraq
|
8.0
|
5.4
|
9
|
Egypt
|
12.3
|
5.7
|
9
|
China
|
4.7
|
6.2
|
681
|
Vietnam
|
7.7
|
6.5
|
51
|
Philippines
|
5.1
|
6.5
|
29
|
India
|
6.4
|
7.4
|
40
|
Ethiopia
|
8.4
|
7.6
|
7
|
The different countries are
positioned using their expected
GDP growth rate (x-axis) and euro import growth rate (y-axis). The size of each country
circle is proportional to the level
of quality imports in 2018.
GDP growth identifies
countries that have particularly favorable conditions in terms of demand
growth. According to these measures Ethiopia, India, and the Philippines are characterized with an average
growth rate exceeding 7% in 2019-20.
For a business to start in a
country their growth of imports in the target market. The currency of export indicates
as a growth trend for sales in the market. The chart shows that Ethiopia, Egypt
Iraq, Vietnam, India and the Philippines, are high-opportunity markets with an
annual average growth rate of above 6% for imports in euro.
When considered the operating
costs, high labor cost, significant imports constitutes China emerges as unique.
Because not only has it a high growth rate of both GDP and euro imports, but
with 681 billion euros of quality imports in 2018, it was the first-placed
importer of quality goods in the world. Other Asian countries selected has
quality imports of less than €50 billion. Other non-Asian high growth countries
do not reach €10 billion.
Conclusion
The above discussion presents the
opportunities in the high growth economies for businesses. Even a small
business before stating should consider the international factors. China and
India are considered the more industrialized economies of ASEAN (Association of
South-East Asian Nation). Bu other countries that have high growth rate for the
future are to be considered in analyzing.
However the regional corporation
should be deepened and it need to be limited to bringing down barriers to
business, trade, investment and competition but may also provide a way to
enhance policy coordination that is supportive of stability and predictability.
References
Bidoia, L. (2019, June 5). The Ten Fastest
Growing Countries in 2019-2020 . Retrieved from Exportplanning:
http://www.exportplanning.com/en/magazine/article/2019/06/05/the-ten-fastest-growing-countries-in-2019-2020/