Doing Business in Latin America? Here's What You Need to Know
There are many reasons why you would want to move your business abroad. It may be because you want to explore new business opportunities or just because you have more contacts in that particular country.
Fortunately, the Latin American business industry can be a likely option. But before doing so, be sure to do some research on doing business in Latin America.
According to the U.S. Small Business Administration, 96 percent of consumers live outside the United States. Emerging countries like Latin America, offer the most opportunities because consumers' needs for goods and services increase.
In addition, some countries in Latin America are part of the largest trade bloc in the world. These countries are Brazil, Argentina, Uruguay, and Paraguay.
The strong trade market of these countries was further strengthened after Mexico, Chile, and Peru ratified the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) free-trade agreement. Other members of this partnership are Canada, Australia, Brunei, Japan, Malaysia, New Zealand, Singapore, and Vietnam. Latin America also looks promising when it comes to economic growth.
Forbes said that overall Latin American Gross domestic product (GDP) is expected to grow by 2.6 percent in 2020. This is mainly because of the strong economies in Mexico, Brazil, Colombia, and Argentina.
Latin America houses diverse cultures and residents, which could mean there is a rich talent pool to choose from. But which industry poses a lot of business opportunities?
Latin America Business Sectors
If ever you decided to take your business in Latin America, here are some industries that might need you and your business's service.
As populations in these countries grow, there is also a growing need for reliable and safe roads and bridges. To be competitive in this industry, a development company would need to use sustainable techniques to be competitive. This is because many Latin Americans want to see more sustainable brands.
With growing international trade, there will also be a need for import and export trade consultants. You could provide advice on how to be in the trade industry properly.
The technology sector of Latin America also creates a possible business opportunity. Technological services needed can range from tourism to banking.
Research also said that there is a need for higher education programs in South American economies "to fill the demand for educated citizens."
Many sectors are needing more certified workers who can work in the growing infrastructure, housing, and manufacturing industries. Another business opportunity in the education sector is conducting an online educational platform company.
If consultancy is your biggest strength, you could do as a sustainability consultant. Many Latin Americans are looking for sustainable companies and brands to support.
Under the sustainability consultant, you can advise on energy efficiency. You could consult with homeowners on how renewable energy sources can be more efficient for their appliances and structures.
World Bank Group ranked Mexico as the highest economy in Latin America and the Carribean region. This was followed by Puerto Rico and Colombia.
Moving Your Business
Taking your business to new horizons would require a lot of efforts and resources. May it be in Latin America or other countries, research your target market well before taking a risk.
Gauge how much you could risk to earn your reward.
Check these out:
Etiquette Tips for Successful Business Trips to Latin America
5 Things You Should Know About Doing Business in Latin America
Why You Should Consider Launching Your Tech Startup In Latin America
Subscribe to Latin Post!
Sign up for our free newsletter for the Latest coverage!