Where To Go? Choosing A Location In A Developing Country

While a macro view of economic trends leans toward a slow pace in the coming years, many are location-specific windows of opportunity. According to the Organization for Economic Cooperation and Development, the global GDP growth in 2023 is expected to be 2.7%. However, in certain areas, that increase is higher. The United Nations estimates a 4.1% growth in GDP in developing countries for 2023.

The location chosen will play a significant role for companies looking to set up operations in a different country nearshore. Establishing a presence in an area with the right workforce, economic opportunities, and geographic conditions could positively impact a company’s performance. When additional measures are taken to improve society, there can be ongoing wins for the long term.

Evaluating the Labor Market

Touring a developing country and studying economic and social data about the place often provides an inside view into its labor pool. In areas such as Honduras, El Salvador, Guatemala, and Southern Mexico, a young, growing population is eager to improve their skills and living conditions. Companies that tap into this workforce could find the resources they need to carry out their work in a timely, productive way.

Setting the right schedules and benefits for workers will ultimately affect the results of a corporation’s efforts. Offering wages considered above average for a region could attract motivated workers. Providing flexible working conditions and offering support to staff who want to improve their skills could also help retain employees.

Surveying the Local Infrastructure

Developing countries with a port or easy access to other nations might be a prime spot to consider. International companies with exporting needs could benefit from high-quality roads and transportation systems. Places that have ample sunlight could be conducive to solar power, and locations interested in developing renewable energy could be a top spot on the list too.

Local governments may be open to working with incoming companies too. Authorities who aim to improve their regions could offer incentives to new businesses. Companies might offer to collaborate with leaders to build new systems and create job opportunities.

Striving to Make a Difference

While it can be easy to identify aspects of a developing country to improve, making sustainable changes can be complex. To create an impact, it’s often necessary to survey the needs in a region over time. Talking to experts in the area and touring other nonprofits could help company executives understand the overall conditions and opportunities.

One key strategy corporations can use to instill lasting benefits often starts with educational resources. Working with schools to create inspiring learning environments for children is one step in that direction. Companies may offer to support teacher training or carry out workshops for parents. Firms could help schools create English classes for students and must provide ways for them to learn skills required in manufacturing.

Partnering with healthcare-focused nonprofits in the area is another move forward. Workers at a company might offer to help at a local medical center. Volunteers from other countries could partner with an international firm in a developing country to offer health brigades every year.

Finding a place with the right workforce, favorable economic conditions, and growth potential requires some searching. Taking the time to conduct interviews and visit places could uncover new opportunities. After finding a good fit, a company can work with local figures to create a business that helps to improve the local society. Over time, the region can experience growth that outpaces global averages and is sustainable over the long term.

When businesses are set up with a foundation in sustainability and the circular economy, a life-changing impact can occur. The company, its people, and the surrounding community are all positioned to benefit. Collectively, this system can create improved living conditions and, ultimately, a better world.