Are you looking to expand your business in Asia? Or perhaps you have already established your startup in Asia, but not sure about the business culture and how to successfully do business in Asia?
It’s no secret that Asia is witnessing the most significant tech boom in its history. But the best part about this boom is that it isn’t restricted to just technology; other industries have also experienced this, which has given rise to the growth of businesses from varying sectors.
Asia’s high growth forecasts make it an alluring market for businesses with expansion plans. Those who want to enter the Asian market can set up new companies or can expand their operations in Asian countries such as Hong Kong, China, Singapore, India, Malaysia. There seems to be a constant positive correlation of the rapidly expanding economies and growth in various business sectors.
The Asian market has experienced enormous economic growth over the years, primarily due to the size of the markets, strategic locations, resources that the different countries have to contribute, affordable labor, and expanding infrastructure.
So, are you ready to successfully start your business in Asia? If your answer is yes, then look to operate in these diverse, emerging markets because a deeper understanding of cultural differences and familiarity with unique business cultures are essential for the success for every enterprise.
Advantages of Doing Business in Asia
Before starting a new business or expanding a business empire in new locations, entrepreneurs are required to look for what that location can offer and how it can be beneficial towards their businesses. Here are some of critical factors and why the interest in doing business in the Asian market is growing:
Stable political, legal and economic environment
Known for quality, integrity, productivity, and enforcement of the rule of law, Asian markets are very welcoming towards international investments. More importantly the sound economic and political environment with stable legal systems in place is precisely the kind of environment an investor would be keen on for establishing a business entity.
The second benefit of doing business in the Asian market is because of its tax system. The tax system in Asia is much lower and reasonable as compared to a lot of other Western economies.
For example, Hong Kong sets its corporate taxes, also known profits tax, at a flat rate of 16.5%, while Singapore sets its standard rate at 17%. The skilled and educated workforce is also available to hire at affordable prices, which is another benefit for entrepreneurs in developing their business entity in Asia.
The relative ease of doing business
It is relatively easy for foreign investors to develop a business in Asia without experiencing too much difficulty while operating their companies in Asian countries. The markets in Asia are still heavily developing, unlike in the Western markets. It allows entrepreneurs to tweak or alter their opportunities in order to come up with a unique innovation.
With thriving multicultural free-market economies, it is clear that international organizations can significantly profit from the strategic locations of Asian countries. The different countries in Asia are not too far apart, with many of them nearby each other and traveling between these regions takes no more than a day.
How to Successfully do Business in Asia
Once you understand the benefits of doing business in the Asian market, the next step is how to do business in Asia successfully. As a matter of fact, each company is different and would be running on a different course. In order to stay in the No.1 position, entrepreneurs should follow the guidelines of running a business successfully in Asia which include:
Learn about the local society
The first and foremost step of successfully doing your business in Asia is to understand the business cultures of the local society, in order to steer away from any legal system problems. Asian business cultures have varying beliefs that are different in every country and understanding the etiquettes and local customs will go a long way in developing a thriving local business.
Understand that the western way of doing business is not the same as the Asian way
It is essential if you intend to have a successful business relationship with people of Asian background or culture that you take the time to learn and understand the people you are dealing with while doing business in Asia.
Asian business people tend to be a lot more introverted than their western counterparts. Having a genuine interest in people Asian background will always serve you well in developing the business in the Asian market.
Working with a local partner
Doing business in the Asia market is complicated, but if you have a domestic partner with a thorough understanding of the local businesses, this is an invaluable asset to help you in navigating the local bureaucracy. In this way, everything will be wrapped up quickly, decisions to be made, contracts signed and sealed, and any loose ends can be tied up by the local team.
By now you have an understanding about the benefits of doing business in Asia and the guidelines of running a business successfully in Asia. As a matter of fact, the Asian market is unitary, meaning that you will find similar opportunities for most countries you choose for operating your company.