India VS USA: Comparing the Two Countries for Doing Business
Although the USA is a magnet to every business person setting up a business, India is quickly becoming a leading global platform for startups. Well, if you’re in doubt about where to set up your business, here’s a peek at some of the main differences, India VS USA, in doing business.
Opportunity For Small Businesses
The pros and cons of doing business in India VS USA differ in various ways. First is in the aspect of catering to small businesses. Small businesses thrive in India because of the changing government policies and overwhelming growth in people’s buying power. India has twice more as many startup businesses as the US. It doubles up the US’s 23 million startup businesses, with approximately 48 million.
The next major difference in India vs USA in doing business is women empowerment. Aside from opportunities for small businesses, there is a great emphasis on women empowerment in India. To positively impact society, 98% of Indian women entrepreneurs know the significance of their business. They consider it as a big help in society. In comparison, in the US, 86% of women believe that they’ll succeed in doing business.
Opportunities Provided by the Marketplace
Although India’s market poses particular problems, it also offers business people aiming to grow their businesses with unique experiences. India has made major progress in computer technology and is leading in other sectors of emerging technologies. There is an increased focus on India’s entrepreneurship as well.
Contrariwise, the US government struggles to fix corporate climate vulnerabilities that render the nation a less desirable place to invest. The government has also tried to remove disparities that undermine the United States’ trade and investment environment.
Another good reason it’s better to do business in India is that the current generation has access to many business opportunities that allow them to scale. India is now well aware of the importance of developing and scaling startup businesses, thus establishing a greater focus on financing and supporting people to develop and grow their businesses.
However, in the USA, companies have ignored the present and latent opportunities of a US location in the scramble to globalize. The scalability of working in a certain locale is influenced by several factors: wage levels, skills, service prices, wages, and many more. These are complex and dynamic variables that businesspeople in the US overlooked in keeping up with the competition.
Indian online markets have an impeccable development of 70% as compared to the previous years. Also, internet usage has increased thrice, which shows the importance of the internet to ordinary people.
Aside from that, it is also a decent indicator for businesses who choose to advertise their products through the internet. India surpassed the US with 243 million web customers. Furthermore, it’s projected that by 2030 India will have one billion more internet users.
Efficiency, compliance with timelines, and similar practices are common business etiquette. These practices are common in the American business industry.
While a superior’s assertion or aggressive behaviour towards employees is disrespectful in India. On the brighter side, Indians are gracious hosts, and they welcome guests to their homes, especially to talk about business. This act of hospitality is regarded as relationship-building and is part of doing business in India.
In line with business etiquette, one must also be cautious of their managerial style. While doing business in India, critiquing an employee’s ideas or performance must be carried out wisely. Managers in India closely track workers and workers must meet work timelines. Please do not assume a time management system for Indian workers or be mindful of timelines unless informed.
On the flip side, the best way to succeed in doing business in America is to think like an American. Competitive sports often inspire the language of business management in the country. With that, the rules of the game are clear: make money as fast as you can.
Planning to Do Business in India?
It’s hard to convey a general conclusion that could help those who want to start a business in diverse and evolving countries like India and the USA. Yet, in doing business, India VS USA, it would help consider all of the factors above.
In closing, allow us to remind you that certain degrees of inconsistencies in market norms is inevitable whatever business you are in. 3E Accounting has assisted international companies in setting up businesses in India and abroad.
Thus, before opening a franchise, a branch, or a local partnership in India, a well-crafted business plan is essential. In India and other nations, we will assist you in legally setting up your business. Contact us, and we will support you in managing India-related legal, secretarial, accounting, and corporate works for your business.