How SME's can take advantage of opportunities and overcome barriers

How to take advantage of opportunities 

It is important for SME's to take advantage of every opportunity they come across in terms of expansion.

In most cases, expansion brings employment opportunities, this is a good way for SME's to achieve a positive public image as they are providing job opportunities to locals in that country. As well as this it can benefit the country they have grown into, as over time, unemployment levels go down which is beneficial in terms the economy and household income.

SME's are the main form of business in Japan and they are vital in the growth in GDP and proper money flow across the economy. SME's can take advantage of the lower prices they can offer to clients with regards to providing a quality service. When the economy is good, SME's will flourish. In addition to this, most SME's offer a unique product or service and can use this to their advantage in terms of competition as they can take measures to ensure their USP is special and easily differentiated from that of their competitors in order to excel in their market.

When looking at the demographics of a country it is important to know what the population is going to be like over time. For example, Japan and its ageing population. This means SME's can look at goals and opportunities over the longer-term and make plans for what is going to come next in the business world. Invest NI provide support in terms of developing business strategies and this could be something that aids businesses in their long-term direction. Invest NI stated, "The Invest NI Leader Programme (PDF) is specifically designed to enable SME leaders to grow their business. It offers participating companies an opportunity to assess their performance. It combines one to one and peer learning in addition to the latest leadership thinking from experts and guest speakers. " (InvestNI, 2019) This is advantageous to businesses as they are able to produce an action plan and receive innovative ideas from guest speakers as well as how to develop strategies on how to drive sustainability and international growth. 


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How to overcome barriers

One way in which SME's can overcome barriers in terms of expansion is to identify where the risks lie. First of all the business must carry out in depth research into the country they wish to invest in or set up manufacturing facilities in.

How to overcome language barriers 
More than 99% of Japan's population speaks the national language which is Japanese. This can make things difficult for Japan in terms of trade and communication as most of the population do not speak a common language which can make things difficult when trading with other countries if a business in Japan was to expand. However, there are ways to overcome this. In some cases, language barriers can provide employment opportunities for those working in an international business environment. Businesses can look at their recruitment and selection process and hire candidates who have strong communication and preferably speak English as well as their home language. This can aid a business also as they may not be able to afford a translator with the costs of expansion. 

As well as this, as the business expands into different countries, more employees will be needed to deal with the growth of the business, therefore employees from different areas in the globe will be recruited and be able to bring new languages and innovative ideas to the business also. 

How to overcome associated costs 
Funding is readily available for SME's looking to expand in terms of loans and grants. However, with most financial institutions, the business has to be able to prove they are ready to expand with the presentation of ideas they want to pursue in the business as well as what their long term and short term objectives are for the future. For example, InvestNI provides guidance and support to small businesses to try their best to aid them in setting up outside their home country as well as developing new ideas and strategies to help them succeed.

How to overcome unforeseeable risks such as Brexit
There is no way a business is going to know every obstacle they are doing to come across therefore there is no way they can be prepared to deal with everything that is going to happen. However, contingency planning would be one of the most effective ways for an organisation to be able to deal with categorical issues such as costs, trading partners and natural disasters. Contingency planning allows a business to conduct a risk assessment and can prevent a business from failure from potential threats. In relation to Japan, they have stated, " cumulative company investments into the UK totaled $158 billion, across 634 Japanese firms reporting annual sales of $68 billion and employing 150,000 workers as of the end of March 2017," according to Bank of Japan and Ministry of Economy, Trade and Industry figures. Japan and the UK have great export relationships however with the Brexit deal looming, things may have to change. A lot of staff are employed in the UK and working for Japanese companies such as a Japan financial holding company Nomura, with about 2,300 people working in London. (Oxford Analytica, 2019) Some plans which could be in place to overcome this would be to move their businesses from the UK into other EU countries to avoid having to make any other trading agreements, they can still trade under the EU regulations they are used to. However, this can be a very costly and time consuming process but it would be worth it in the long-run. 


How to overcome international accounting difficulties
Expanding into new markets means adopting new sets of policies and rules in relation to different taxing regulations and tariffs. Failure to comply with different procedures can result in costly penalties, which a newly growing business isn't likely to want to incur. In order to overcome this, finances can be outsourced to local companies who know the market and they can ensure the business is compliant. Another option would be to seek expert advice from a company that specialises in international business expansion. (Talk Business, 2019)

How to overcome risks associated with growth and development
As discussed before there are risks that come with expansion and these can arise from lack of information or in-depth knowledge of the areas for growth. In order to overcome this, businesses can have a research department or collaboratively work together to decide where the best possible places for growth and expansion lie. It is important to know all of the knowledge about the countries even when it comes down to culture and ethics of the habitants in that country to make sure their business practices are ethical when it comes to trading in that country. 

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