Be aware of the added value you bring as an expat entrepreneur
You might think that not being a local puts you at a complete disadvantage. That is not true. Instead of being rattled by insecurity about being a newcomer, be confident that you do bring something unique as an expat.
As compared to local entrepreneurs, expat entrepreneurs might have a more global perspective, the ability to compare industries in different countries and fresh ideas. They can notice gaps in the market or business problems that locals don't notice because they are used to the status quo of their country. The cultural background of expat entrepreneurs, even things as “simple” as their homemade food and ethnic wear, can become a unique part of their brand.
Many expats, for instance, start a side business from home by selling homemade food from their country. That food might be rare, expensive or not authentically made in their new country. Their cultural background gives the product an immediate reputation for authenticity.
For instance, in an interview with Expat Magazine in June 2022, Amel and Marouane, two French expats of Algerian origin who now live in Mauritius, talk about starting to make artisanal hummus to sell to a Mauritius-based clientele. They found the administrative procedure to register their business and get a hygiene certificate straightforward in this country, and soon enough, they were placing their products in supermarkets.
Think about which products and services your home country is famous for. Are there already many businesses selling these in your new country? If not, would there be potential customers for these, i.e., is there a gap in the market?
A service can involve teaching clients your native language as a trainer/tutor, giving sports or wellness classes, coaching locals in a management style that's more common in your home country. Many Indian expats, for instance, have found a lucrative niche in teaching yoga abroad. Yoga is one of the most recognizable Indian cultural exports, and they have tapped into its business potential to become “yogapreneurs.”
Get educated about the local entrepreneurial landscape and create a “glocal” network of experts
"Glocal" is a portmanteau word for things that bring together both local and global factors. To thrive in this globalized world, many businesses need to have a glocal approach. Fast food chains integrating local architectural traditions in their outlets and a few fusion items on their menu is an example of being glocal. KFC in China, for example, serves congee with fried chicken.
Expat entrepreneurs' network and business know-how must also be glocal. Even if they have an excellent international network, they must remain humble and aware that they also need to win the trust of a new local network. Before even thinking of getting a startup off the ground, go to local networking events, join a local volunteer group or cooking club or film club, and become involved in the community of a co-working space.
Even if you don't strictly need a place to work from, co-working spaces are particularly useful because they have an eclectic community of both locals and expats, many of whom are seasoned entrepreneurs. Co-working spaces also have events that teach you about local business law, new technologies, the economic situation, etc. Some even have startup incubators, i.e., institutions that offer support and resources to startups in their initial stages.
Incubators help startups with drawing a business plan, hiring team members and finding their first clients. Through the aforementioned spaces, expats can find local investors and, even better, a local business partner. It's safer to share the risk involved in launching a business with a local partner who is more familiar with the country's market.
To grow a network and accumulate hands-on knowledge of the local business culture, it's also worth attending a local university or working in a traditional office job for a local company for a short while. That could just be 6 months to 1 year. Being proficient in the country's official language and being familiar with its business law are also key. For the latter, expats can seek tailored expat coaching.
As a non-citizen, it's especially important to know what funding sources you are eligible for. In most countries, the state has some funding for startups, especially for social enterprises, for those led by entrepreneurs from marginalized communities and for those in emerging economic sectors (e.g., fintech, green energy). Unfortunately, much of this state funding is available only to citizens.
Furthermore, banks might be reluctant to give hefty loans to newcomers in the country. Sometimes, expat entrepreneurs have no choice but to resort to their personal savings, crowdfunding and global angel investors. Angel investors are wealthy individuals who invest in startups anywhere in the world if they are convinced by the idea and get ownership equity in the company.
Even if expats might not get state funding for their startup in a foreign country, there still exist some state-funded support programs for which they are eligible, sometimes even specifically tailored for them. They are similar to startup incubation programs. For example, in Canada, there exist multiple state-funded programs for women expats, especially those from ethnic minorities, who are interested in entrepreneurship.
