Expat entrepreneurs mean business
Entrepreneurs are that special breed of people who can spot an opportunity and – more importantly – have the initiative to pursue it. While many of us might lay claim to that one brilliant idea, how many of us can or will do anything about it? This drive is what makes the entrepreneur exactly the type of person who will upend their life and move abroad, if their dream requires it. But why do so many people end up moving abroad to kick start their businesses?
Benefits of moving abroad
There are many reasons why entrepreneurs choose to move abroad but one of the main reasons is stimulated by money-making (or saving) potential. The costs of starting a business are a huge factor for cash-strapped startups. Many choose to work remotely and instantly cut overheads by basing themselves in foreign cities where rental costs are low.
Countries keen to attract startups offer enticing tax breaks or other financial incentives to the small business owner. Financial centres like Silicon Valley, New York, Berlin and London are also known to give startups a financial pipeline to Venture Capitalist bucks, further enticing those with entrepreneurial spirit to uproot and transfer their business abroad.
There is no business without people
Similarly, staff costs vary dramatically globally. A staff.com study found that the average wage for a web developer in India was $12,000 while in Australia, it was $87,000. While cost of labour is a factor, the pool of talent is another. There are centres of excellence in certain professions due to a local university producing high-calibre graduates so it often makes sense for a business to go directly to where the talent is, rather than wait for it to come to them.
There are a myriad of reasons and advantages for entrepreneurs moving abroad, but with many things in life this choice comes with a whole host of challenges. In this short series of blog posts, I will look at the the problems that expat entrepreneurs are likely face when relocating and offer my solutions, as well as advice from some successful expat entrepreneurs who have “been there, done that.” Next week, I will focus on how to build your private and professional network amongst the expat and wider community wherever you are in the world.