Is a Move to China Viable for Small Business Owners?
China has a bustling and expanding economy that is attracting many businesses from abroad. The country removed a lot of red tape a few years ago allowing for small businesses and startups to more easily get set up in the country. It’s easy to see the country’s allure. Workers can often be found for very cheap, and the growing economy has a lot of benefits. China also has a big population, which can be potentially great for business.
If you’re a small business owner considering a move to China, there are some things you need to think about. Not all businesses or business owners are the same. More established small businesses with investment ability and selling ability may do better in China, but depending on your business it may be right for you. Below are some things to consider while thinking about a small business move to China.
Intricate Laws and Business Setup
Be aware that the country has a lot of legal issues you will be facing with a move. Outside business owners will have more difficulties and hoops to jump through when it comes to hiring workers and owning land. These issues can be navigated, but you’ll need a thorough understanding of Chinese laws and regulation to move or start a small business here successfully.
Build Local Relationships
Much of your success in China will depend on your ability to develop local relationships. Based on your skills and the type of business you have you may have trouble finding success without integrating and networking with locals. Even if you are a home-based business, you must be ready to network and build relationships. Consider learning the language if you’re serious about a move.
Understand the Culture
Going off of the last point, it is also important to know the culture that you’re going into. China is a nation full of rich heritage. You need to understand the culture and customs to do business here and win people over. If you try to treat the people in China just like they are anybody else, they may be hard to win over.
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Consider Intellectual Property
Even though you may have claimed copyrights in your home country, these won’t necessarily continue to China during the move. You may need to get your intellectual property protected all over again. Depending on the small business you run, this may increase the hurdles you face when moving to the country.
While moving to China has a lot of benefits for business owners, it is not viable for everyone. There are some unique issues to face when moving to this country that you won’t meet elsewhere. If you think you can manage the above issues, the move might be viable for your business. But it’s necessary to think long and hard about it beforehand.