Are you a technology company looking for business expansion beyond your home country? Look no further than Southern Europe and Latin America.
First, let’s talk about the markets themselves. Spain, France, Italy and Portugal are known for their strong economies and high levels of technology adoption. In fact, Spain and Portugal have, for example, one of the highest smartphone penetration rates in Europe, with over 80% of their population owning a smartphone. This means that there is a huge potential customer base for your technology products and services.
Another reason to expand into these markets is the fact that they are home to a large and growing population. Spain, France, Italy and Portugal are some of the most populous countries in Europe, and Latin America is home to more than 600 million people. This means there is a huge potential customer base to tap into, with more than 10% of the world’s population.
But it’s not just about market size. These countries also have a culture that values innovation and new technologies. In Spain, for example, the government is very focused on fostering a startup ecosystem, with initiatives such as the “Startup Spain” programme, which offers support to aspiring entrepreneurs. This means that not only is there demand for technology products, but there is also a favourable environment for technology companies to thrive.
What about Latin America? This region is also known for its high levels of technology adoption, with Brazil and Mexico among the top 10 countries in the world with the most internet users. In addition, the Latin American market is growing rapidly, with e-commerce sales expected to increase by more than 20% in the next few years. This means there is huge potential for technology companies to enter this market and take advantage of its growth.
But it is not just about market size or demand for technology. Business expansion in Southern Europe and Latin America also offers other advantages for technology companies. For example, these regions offer lower labour costs compared to other developed countries, which can help reduce operating costs and increase profitability. In addition, the time zone differences between these regions and the US or Asia can also provide companies with the opportunity to offer 24-hour customer support and service.
So why should your technology company consider expanding into Southern Europe and Latin America? The markets are ripe for technology products and services, there is a supportive ecosystem for technology companies and there are additional benefits in terms of cost savings and the ability to offer 24/7 services.
OK yes, those are the reasons but what are the advantages?
The advantages are quite related to the reasons, so they mainly revolve around the size of the markets (big slice of the pie), the business mentality and culture, and the innovative landscape of these countries:
First, let’s talk about Southern Europe. Spain, France, Italy and Portugal are incredibly vibrant and diverse countries, each with their own culture and economy. If you expand your business to these countries, you can access a whole new market of potential customers.
But that’s not all. Southern Europe is also home to some of the world’s most innovative and cutting-edge technology companies. By expanding into this region, you will have the opportunity to collaborate and partner with these companies, which could lead to exciting new developments for your business.
But again, what about Latin America? Well, this region, as I mentioned earlier, is also ripe for the expansion of technology companies. With a growing middle class and a high demand for technology, Latin America is an increasingly attractive market for technology companies looking to expand their reach.
In addition, Latin America is home to some of the world’s most dynamic and fastest growing economies, such as Brazil and Mexico. By expanding into this region, you will be able to tap into these growing markets and potentially see incredible growth for your business.
But there’s more. Internationalising and expanding your business has other advantages too. For example, it can help you diversify your customer base and reduce your dependence on a single market. This can be especially beneficial in times of economic uncertainty, as it can help insulate your business from potential recessions in any one region.
In addition, Latin America is home to some of the most dynamic and fastest growing economies in the world, such as Brazil and Mexico. By expanding into this region, you will be able to tap into these growing markets and potentially see incredible growth for your business.
But there’s more. Internationalising and expanding your business has other advantages too. For example, it can help you diversify your customer base and reduce your dependence on a single market. This can be especially beneficial in times of economic uncertainty, as it can help insulate your business from potential recessions in any one region.
In addition, business expansion into new markets can also help stimulate growth and innovation in your company. By exposing it to new cultures and ways of thinking, you may be exposed to new ideas and approaches that can help drive your business forward.
So, there you have it. Expanding your technology company to Southern Europe and Latin America can be incredibly beneficial to your business. Not only will you be able to access new markets and collaborate with innovative companies, but you can also diversify your customer base and stimulate growth and innovation within your company. Why not take the leap and internationalise your company today?
Well, we know why… because it’s not easy, you need resources, money, time, staff… and for many startups and scaleups these resources are not abundant.
That’s why at Springboard35 we step in to help these types of companies carry out this important and crucial process by bringing in local business development experts. This will help your technology company to leap over or greatly minimise those entry barriers to entering new markets (mainly cultural and linguistic) and we do so by reducing the time, costs and, consequently, the risks involved in the process.
If you are looking to internationalise your company and you don’t know how or where to start… don’t hesitate, we need to meet you!
