Singapore has always been a nation which has been much involved in international business activities. Such has been true of the country in the past; this fact remains the case to this day. Singapore’s heavy international business involvement largely stems from the fact that the country possesses neither a wealth of natural resources nor the land area or population to be fully self-sustaining through ordinary methods. Therefore, the country has had to develop its economy through international trading activities. To do so, Singapore has had to turn itself into a global center for business and trade. Today, Singapore is one of the Asia-Pacific region’s leading corporate hubs; it is also home to the regional headquarters of some of the world’s most well-known companies.
However, not every Singaporean company has found similar success when expanding to other countries. The vast majority of companies based in Singapore are not involved with any plans to expand to other countries. This fact has come in spite of much government support as well as many efforts made to assist with the international expansion of local firms. Unfortunately for Singapore-based companies which have not chosen to expand to other countries, this decision to remain in Singapore has cost them much profits because they have missed out on being able to cater to a significant number of customers.
Difficulties Faced by Singaporean Companies During International Expansion
Some of the main challenges faced by Singaporean firms face when expanding to other countries involve intercultural differences with regard to social values and norms. In many countries, failure to understand such differences could lead to the failure of the business. Therefore, Singaporean business owners who are apprehensive about their ability to handle such differences often prefer to remain in Singapore. For this reason, government assistance is not enough to ensure the success of a Singapore business which expands abroad. Entrepreneurs of Singapore must understand and overcome cultural barriers when their business expands; doing so goes a long way towards easing the transition of the business abroad so as to create a competitive advantage for the business.