SA firms need to seek global opportunities

There are huge concerns among citizens about SA’s economy and the future. With crime, corruption, political uncertainty and shortages of water in some places playing a huge role, as well as massive unemployment and higher costs of living, the mood is generally grim.

Many of the issues facing businesses in SA today are out of the control of business owners. But despite the stress and the responsibilities, running a business still has many advantages.

Leaders of all companies, no matter the size, have a duty to continue to protect and grow their businesses to help work towards an improved economy.

What is the solution? It might seem contradictory to suggest expansion after listing the many problems facing SA, but when the economy is not fruitful or performing well, you have to look a decade ahead to see what will potentially bring success and looking overseas could very well be the answer.

There are many industries that would do well to look abroad. In Cape Town alone, there are some well-placed companies, particularly in the technology space.

Consider Silicon Cape — it is extremely attractive with immense opportunity and so much to offer. Some companies are involved in exciting projects and overseas expansion would allow them to attain far greater goals than the more limited success they will enjoy in SA.

The risks are significant, of course. Firms have to really understand the markets they are entering. Those that have their finger on the pulse will have a competitive advantage.

Firms need to re-evaluate their offering and build bulletproof relationships with their customers. Adequate preparation and research need to be done to find appropriate opportunities overseas. Mainland Europe post-Brexit, for example, will offer a host of opportunities for South African start-ups.

But the most important consideration is “people”. A company will not succeed if it has the best product or service but not the right employees.

Companies should consider whether to employ new people internationally or transfer key employees. Current employees already know and understand the business and will help to keep continuity across countries, which is important.

However, for companies expanding into other African countries, there are distinct advantages to employing locals in their new offices. Africa does business in its own way, each country is unique and has its own requirements and understanding of doing business.

Having employees who know the way business is done in their countries and who enable a South African company to hit the ground running as soon as possible is invaluable.

Africa is very attractive to foreigners. In the legal industry, for example, there has been an influx of foreign law firms establishing offices on the continent using SA as a gateway.

South African companies should not be complacent and let others move in.

Expanding into the rest of Africa makes sense for many businesses here too who already have the competitive edge of being established in SA. MAINLAND EUROPE POST-BREXIT WILL OFFER A HOST OF OPENINGS FOR SOUTH AFRICAN START-UPS

In challenging times, businesses tend to retract and refrain from investing in their future. Instead, they should consider expansion and the international opportunities available to them. By not having all eggs in one basket, firms are able to spread the risk. And with the right preparation, courage to expand, having the appropriate people in place and hard work and commitment, success is possible. Just because your home market is starting to become saturated, why can’t your product or service work well overseas?

Expansion helps not only individual firms but the South African economy as a whole. By succeeding internationally, it helps local offices and brings the spotlight further onto SA and the potential opportunities for international trade and investment. Not to mention an increase in tourism. This can lead to more foreign direct investment, which means more jobs and opportunities and potentially an easing of our challenging economy.

Tough times breed great leaders – step up, fight for the future and your people, and prepare for what lies ahead. Considering expansion outside SA means an undeniably exciting challenge with potential business growth and success.

Green is CEO of GRM, an executive search, market entry, board advisory and leadership consulting firm with offices in Asia and Africa.