Are you an innovative entrepreneur who is looking forward to piloting your business idea internationally? Do you look forward to testing the waters in the European tech industry?
If your answer is ‘yes’, then we are with you. And, by saying that, we mean to take you on a ride through this article that will talk about everything you need to know before expanding your business to Europe.
Expanding your business to Europe comes with a perk hamper in terms of growth & revenue generation. You get to leverage economic stability and solid ground to grow your business. It does not matter whether you are a big corporation, an SME, or a start-up: expansion to Europe can help you diversify your products and services, find new customers and grow your revenue streams.
Why expand your business to Europe
Expanding to Europe opens access to a vast, diverse market of over 740 million consumers, offering significant growth potential. The continent's stable economies, skilled workforce, and robust legal framework create a favourable business environment. Moreover, Europe's rich cultural heritage and global business hubs present unique opportunities for global brand recognition and expansion.
By expanding your business to Europe, you access the world-class infrastructure, an incredibly diverse market and affluent customers. Many local cities, countries and the EU have also been working on the simplified process & incentives with an aim to see foreign businesses set up in Europe.
You also ought to know that the customers are not the only perk of the expansion to Europe. Another benefit that comes along is the chance to tap into a highly educated talent pool. Global employment in Europe helps you diversify your company culture, bring in a range of expertise and skills and build the right products, services and business strategies in a selected market.
Here are a few advantages of expanding a business to Europe
Advantages of the Expansion to Europe
We have already praised a lot the expansion of a business to Europe. The following advantages are of relevance to businesses of all shapes and sizes:
Free movement of goods & services in the region
Free movement of goods means businesses and consumers can benefit from the absence of custom duties and restrictions on quantities within the EU and the EEA. This means that, even if you decide to grow your business in one country, you can easily expand into neighbouring markets by moving your products and services across borders.
Access to a diverse market
Europe is home to a diverse market. The region is economically interconnected, particularly through the EU, EEA and Schengen agreements. Regional differences vary greatly, allowing you to pick and choose the right place, economy and population to execute your expansion.
Opportunity to save costs
By having a business base in Europe, you can save a lot in terms of transportation, shipping and manufacturing costs. While the initial investment may be high, expansion to Europe can indeed help you build your products, services and brand in ways you wouldn’t otherwise have realized.
Access top talent with the right skills
To grow your business effectively & globally, you need access to a diverse talent pool. Europe can, in every way, offer that. You can either grow a remote team or set up a physical office.
The booming European tech industry
The Dutch are well-known for many world-famous inventions ranging from the submarine and Bluetooth to the microscope, telescope and the 4-wheel drive. Next to that, the Dutch company Philips is responsible for the invention of cassettes, CDs and DVDs as well. These are the objects that people use every day; it means that there already is a rich national history of many entrepreneurial inventions & innovations.
Nowadays, you can find a wealth of interesting companies and start-ups that focus on sustainability, clean and renewable energy and solutions that deal with waste. Therefore, tech start-ups from all over the globe are highly sought after, simply because the Dutch believe in a collaborative effort to constantly find original solutions to new-world problems.
As a matter of fact, Europe is already recognized as a tech haven and here are the 3 start-up investment trends that you must keep an eye on:
1. A surgeon start-up funding in the first quarter of 2022
According to a report published by CB Insights’ State of Venture report, the European start-ups attracted $26.8 billion in funding, during the first quarter of 2023. This is a 20% quarter-on-quarter increase, and 34% more as compared to that of 2022.
2. Higher equity to start-up employees
The European start-up employees are receiving higher equity with 15 to 17 per cent at series D. While the equity is lower as compared to that of Silicon Valley, the increase in stock options indicates the greater desire by European start-ups to hire & retain talent.
3. The new EU policies empowering tech startups
- The EU Startup Nation Standard A new policy, the EU Startup Nation Standard, is set up to tackle common issues confronted by start-ups, including attracting talent, retaining employees and venture creation.
- Digital innovation and scaleup initiative (DISC) This policy was set with an aim to counter the investment gap faced by digital startups in eastern, central and southeast regions of Europe by beefing up technical assistance programs and maximising investment opportunities.
- Innovative Radar Platform With the purpose of discovering the outputs of funding for the innovation, the Innovative Radar Platform aims to identify high potential innovations and innovators in research and innovation projects.
How to grow your business in Europe
Check for Permanent Establishment (PE)
Start by checking for a permanent establishment to find out if the business activity, carried out by you, involves permanent establishment risk or not. Generally, any revenue-generating activity involves a PE trigger. Thus, it is always recommended to check in advance & prove the transparency, especially with regard to taxes.
Look for a legal presence
Look for the kind of legal presence you can open. This does not necessarily apply to opening up a physical office. Countries, including Germany, allow businesses to set up virtual companies to test the waters and then expand their business operations. Thus, it is recommended that you look for the options in advance.
In case you feel overwhelmed, you can always choose to seek professional assistance.
Onboard the right talent
As soon as you have a legal presence in Europe, hiring the right talent will set the ball rolling. Hiring the right talent is crucial since it is a primary requirement to achieve business goals.
When it comes to finding the right talent, there are many professional recruitment agencies that can help you in your best interest.
If you, as a reader, are looking for a tech job in the Netherlands, then this might interest you: This is why start-up jobs in the Netherlands are rising, even now.
Employee compliance
When hiring a new talent, adhering to the local employment law is crucial. This helps protect both the business & the employees. ADT helps your business to enter into new markets, fast-track growth and avoid the hassle of incorporating a new entity by taking care of all local tax laws, payroll services, social contributions and health insurance. We can help you with global compliance, therefore making it possible for you to run your business smoothly.
Conclusion
The European tech industry is thriving and there is no stopping anytime soon. Technology is revolutionizing and businesses are booming, making Europe a safe space for any tech business to expand their horizons of operations.
If you are looking forward to expanding your business in the European tech industry, there is no time better than NOW! In case you are not clear about how you can begin the same, our team of experts is right here to serve you.
For any global expansion-related queries, connect with us at experts@adtsolution.com
You may also explore our website by clicking here.
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