Offshore business expansion confidence on the rise
Confidence in offshore market expansion for New Zealand businesses continues to grow, according to a recent survey.
New Zealand businesses are better off resorting to offshore expansion in order to reap greater benefits, according to a recent study by workplace solution provider Regus.
The Regus Global Survey shows 41% of New Zealand companies are planning overseas expansion of their business within the next few years in search of future investment prospects.
More than 12,000 companies worldwide participated in the survey, revealing that those which decide to expand internationally are more likely to benefit from better performance results.
William Willems, regional vice president of Regus, told NBR Online there are plenty benefits surrounding offshore expansion for businesses looking past the domestic market.
“Firms not competing internationally are closing themselves off from significant global market opportunities, a broader customer reach and additional investment prospects,” said Mr Willems.
Extensive research is also crucial to ensuring successful expansion to global markets as too many businesses resort to jumping straight into the deep end.
Survey results also show 30% of businesses find the biggest obstacle to overseas expansion are the challenges of setting up a physical presence in a foreign country.
“The economic outlook in Asian markets for example is particularly strong, and because New Zealand is in close proximity to these markets, overall set-up costs would be lower in comparison to other countries in Europe and North America,” he said.
“This means taking the time to test the market place research the economic, political and legal landscape of a new country.”
Although the results indicate confidence in New Zealand businesses to venture into global industries, potential risks need to be kept in mind for those looking to initiate offshore business growth.
Robert McCambridge
Wed, 14 Mar 2012
Wed, 14 Mar 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Offshore business expansion confidence on the rise
19381