Despite being on the other side of the world to a big part of the global population, Australia is one of the most exciting territories for international expansion, regardless of your business niche or industry.
The country is home to just over 24 million people, but still, so few entrepreneurs understand that it is also home to one of the world’s largest and most lucrative economies – the twelfth largest in the world. With a GDP of more than $1 trillion US dollars and wealth of more than $6.4 trillion US dollars, Australia has a large middle and upper-middle class citizenship, with its service sector performing well and accounting for an eye-watering 68% of the country’s GDP.
It seems as though Australia is an optimal place for entrepreneurs to expand their business into a new territory and unlock new global opportunities. Therefore, below, we give you an overview of the reasons why you should choose Australia for your next business expansion.
Expansion Future-Proofs Your Business
At the Biz Latin Hub, we firmly believe that expanding into new territories not only allows you to capture the attention of new customers and grow your profit margins but also future-proof your business. With the rising threat of politics in the United States and the upcoming Brexit in the United Kingdom, some of the world’s most respected economies are changing, proving that relying on a single economy is risky in today’s ever-changing social and political landscape.
Australia is a market such few businesses have yet to crack, which not only allows you to make headway and rise above your competition but also add another string to your bow and offer your investors and shareholders new revenue streams that are low risk and offer long-term rewards.
The country’s economy continues to perform well against other markets, this year hitting a 3.4% annual growth rate, which was higher than expected and proves the market is strong and stable.
It’s Easy to Enter the Market
Australia market entry is another reason why so many investors are choosing to flock to Oz. With four distinct business structures (sole traders, partnerships, companies, and trusts) you can effectively set up a business and begin trading within the country overnight, and its reasonable tax rates (Australians pay no tax on their first $18,200 earned, and then 19% on money over that up to $37,000 before reaching the highest bracket of 37% on each $1 over $87,000) are another benefit to entrepreneurs looking to enter a new territory. Of course, we recommend that you consult a specialist within the country before you decide to invest and launch a business.
Trade Agreements with Latin America
Latin American businesses are performing well in Australia thanks to Colombia-Australia Trade Opportunities and agreements. One of the most popular trade agreements involves coffee, with US$31 million of Colombia’s trade with Australia made up of coffee beans. Other agricultural exports include cut flowers, with Australia purchasing US$6 million a year from Colombian farmers.
With trade between the two countries on the rise – currently, US$52 million is imported to Australia from Colombia, up from US$18 million back in 2006 – it’s possible to launch a business in Australia and benefit from its trade agreements to procure high-quality raw materials to manufacture and then pass on to affluent Australian consumers, provided that you operate within the right niche.
Other Latin American countries are also seeing strong trade alliances, with The Australia-Latin America Business Council (ALABC) forging ahead to increase relationships between the territories. Peru, Chile, and Brazil are just three LATAM countries enjoying significant and growing trade deals.
Its Mining Sector is Huge
One of Australia’s most well-developed sectors is its mining industry, and as such, many Latin American experts are flocking to the country to take advantage of its rich natural resources. The sector contributes more than 7% to the total GDP of the country, and is the third most important contributor to the country, behind insurance and financial services. Brazillian firm Vale invested millions of dollars into the country to extract coal but has since idled some mines due to poor market conditions. The country, however, is also home to resources such as uranium and natural gas, with a CSIRO report suggesting the country has 140 trillion cubic feet of natural gases that can fuel a city that’s home to a million people for the next 2,800 years.
The Country Has Global Ties
Australia’s open trading economy has allowed it to become a truly global player and a hub for businesses that cannot forge trade relationships in other countries. Australia has trade agreements with countries around the world, including several high-profile Asian markets, with two-way trade topping an eye-watering A$673 billion in 2015-16. The United States is another key partner, with exports of beef, aircraft parts, and alcoholic beverages generating income, whilst it supplies gold, lead, and coal to the United Kingdom and precious metal ores and fruits to Germany.
Need More Information?
It’s no secret that Australia is one of the most exciting locations in the world for international businesses looking to expand within the territory, and we’ll no doubt see foreign direct investment (FDI) continue to grow and develop as more organizations understand its potential.
At Biz Latin Hub, our team has vast knowledge and expertise in Australian market opportunities and helping entrepreneurs from all walks of life expand their businesses globally. To learn more, get in touch with our Australian CEO, Craig Dempsey, via email at [email protected].