Marián Volent about the advantage of the expansion to the US market
What are your key recommendations that you suggest to Slovak companies to think about while expanding to the U.S. market?
I would recommend companies start with research that can help them to save resources and locate their business nearby research clusters or key potential customers. They can start reading the SelectUSA Investor Guide that is the first-step resource for companies interested in making business investments in the United States. They can also use the Cluster Mapping Tool to examine a specific location's clusters and economic performance or get information on specific cluster across all regions in the United States. I would also recommend them to use Assess Costs Everywhere (ACE) online tool that provides manufacturers with the top reasons for investing and sourcing in the United States. ACE will also help Slovak managers assess total costs more accurately and enable informed decision-making. If companies are looking for incentives, they can search and compare various state incentive programs at State Business Incentives Database. Another great resource for small businesses is the Small Business Administration’s Business Guide.
How do you perceive the USA as a destination for Slovak entrepreneurs and why should Slovak companies/startups expand to the U.S.?
The United States offers the largest consumer market on earth with a GDP of $20 trillion and 335 million people. Household spending is the highest in the world, accounting for nearly a third of global household consumption. The United States is a world leader in consumer goods market research, product innovation, manufacturing, and branding and marketing, and offers a highly skilled workforce.
This lucrative open market is a powerful growth engine for Slovak and other foreign companies of all sizes. The United States has relatively favorable regulatory environment for businesses and strong entrepreneurial culture and a supportive ecosystem for startups. A great event that Slovak companies can explore is the annual SelectUSA Investment Summit.
This event brings together the entire U.S. economic development ecosystem to Washington D.C., allowing foreign investors to connect and network with potential partners and identify a suitable location in the U.S. market. The 2024 SelectUSA Investment Summit will be held June 23-26, 2024 at the Gaylord National Harbor.
What could be the main driver/motivation for Slovak entrepreneurs?
Expanding into the United States can help Slovak entrepreneurs diversify their business portfolio and mitigate risks associated with relying solely on the Slovak or European Union markets. By investing and/or establishing a presence in the United States, they can increase production capacity and find new customers across the United States.
Establishing a successful business in the United States can also significantly enhance the reputation of a Slovak company, both domestically and internationally which can also help them to open doors to new export opportunities into other international markets.
What are the key challenges Slovak entrepreneurs face while expanding to the US?
Slovak entrepreneurs should do their research and learn about the U.S. business culture. They should also network with other Slovak entrepreneurs who have successfully expanded to the United States to learn best practices. The U.S. banking system is highly regulated and setting up a bank account can be a complex and time-consuming process.
Slovak companies need to have a realistic budget in place and be prepared to invest in their new business. The average total annual cost for a branch office of a foreign company with up to two employees can vary significantly depending on the location, industry, and specific needs of the company, but can be between $150,000 and $250,000 per year.
SelectUSA can assist Slovak entrepreneurs with connections to established Slovak investors who can provide testimonials about their experiences investing in the United States.
