The best countries to open a small business in 2020

October 02, 2019




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.
  1. Average annual growth rate of GDP above 4% in the period 2019-2020 (International Monetary Fund, April 2019)
  2. Average annual growth rate of imports in euro above 4% in the 2019-2020 (StudiaBo, April 2019)
  3. 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/

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