Home-grown growth – the new way to business development
New worldwide research from Regus shows that companies are increasingly seeking growth in home markets rather than in exports.
Malta, 12 May 2014 – According to the latest business research by Regus, the global workplace provider, 250% more companies are currently looking for business growth in their domestic markets as are seeking it abroad.
The research canvassed the opinions of more than 20,000 senior executives and business owners across 95 countries. It proves that 42 per cent of companies are seeking growth at home, while only 17 per cent are looking to grow internationally.
According to the research, the five most important barriers to international growth are seen as:
1) hiring top quality staff (77%)
2) lack of local knowledge and connections (62%)
3) access to flexible office space (57%)
4) lack of market information (57%)
5) the difficulty of building a local distribution network (45%)
The focus on home-grown growth is even more marked in emerging markets, where three times as many companies (51 per cent) are seeking it compared to the number looking for growth overseas.
This is evidence that the results of economic recovery are starting to benefit more people in developing countries as consumer confidence begins to recover, and reliance on exports diminishes.
Commenting on the study, Mauro Mordini at Regus says: “There has been an important reversal in the past two years, with firms now experiencing more growth from domestic markets than through foreign expansion. This change reminds us of how important it is for businesses to remain flexible and scalable so that they can respond to market volatility, but also highlights an important increase in consumer purchasing power in emerging economies.
“Regardless of whether businesses are expanding in new markets in their own country, or abroad they rely on a series of key factors. They need to access reliable and up-to-date market information, to network and to have easy access to a number of options when considering the best location to set up in. In addition to these needs, flexible working space allows them to rapidly react to the markets and keep their capital free for investment in further growth. Businesses need to be able to rapidly expand, but also to retract speedily should growth possibilities open up elsewhere.”
Regus is the global workplace provider.
Its network of more than 1,800 business centres in 100 countries provides convenient, high-quality, fully serviced spaces for people to work, whether for a few minutes or a few years. Companies like Google, Toshiba and GlaxoSmithKline choose Regus so that they can work flexibly and make their businesses more successful.
The key to flexible working is convenience and so Regus is opening wherever its 1.5million members want support - city centres, suburban districts, shopping centres and retail outlets, railway stations,
motorway service stations and even community centres.
Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange. For more information, please visit: www.regus.com