Diversification – an effective and safe way to develop business after the crisis

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The development and maintenance of a company’s operations in post-crisis times is a hard nut to crack for entrepreneurs. The answer to this challenge is diversification. Not only does it minimize the risk of running a business, but it also increases expansion into foreign markets. However, proper preparation for diversification is crucial. One of the programs supporting both small and large companies in this area is Global Silesia, implemented by the Upper Silesian Fund S.A. and the Marshal’s Office of the Silesian Voivodeship.

The dynamically changing reality and the economic crisis caused by the pandemic significantly restricted the functioning of companies from many sectors of the Polish economy, affecting both consumer behavior and the actions taken by entrepreneurs offering products and services. Many of them wondered how to protect themselves against the future risks of running a business. Some were also looking for ways to make additional profit. Silesian companies opted for diversification – an effective and safe way to expand, supported by the Upper Silesian Fund.

Diversification – a sound development strategy

Diversification is a risk management strategy that may take many forms, including the expansion of the product and service range or of the groups of recipients and suppliers. Nonetheless, in difficult times – just like today – primary option should be opening up to new markets and expanding areas of operation. Such aspirations are particularly important for companies operating in industries with high development and export potential: IT/ICT, energy, green economy, industry 4.0, broadly understood automation and robotics, as well as innovative food processing technologies. Thanks to diversification, companies not only increase their development prospects but are also more resistant to the pressure of the competition. Actions taken under this strategy are also a good way to change the local markets and manage disruption risks in global supply chains, like the one caused by the Vietnamese container ship Ever Given blocking the Suez Canal.

National and international plans for economic recovery are conducive to taking decisive actions and increasing business activity. Today is the perfect time to minimize the risks associated with running a business. It is also high time to acquire new contacts and become independent of the conditions prevailing only on a single local market. Diversification is a solution that meets the expectations of entrepreneurs seeking new ways to develop.

The Global Silesia program is opening up to new opportunities

Entering new markets and undertaking export activities is difficult and time-consuming for entrepreneurs. In such cases, it is crucial to thoroughly analyze and evaluate the company’s capabilities. It is no less vital to identify the business potential in a different environment. Finally, it is also necessary to verify potential trade partners, learn and understand the mechanisms present on foreign markets, as well as the customs and cultural background of a given country. These extensive requirements and a plethora of tasks to be performed dissuades many an entrepreneur from taking the first step to set up a business in a foreign market. In such a situation, however, you should not rely only on yourself. It is worth asking real experts for support – ones who know foreign markets inside out, are well-aware of the rules governing them and have practical experience in diversification.

Silesian companies already receive support in the export of products and services as well as practical knowledge on running a business in very diverse foreign markets. Appropriate conditions for working with foreign partners and for establishing and expanding trade and economic contacts are created thanks to the efforts of the Marshal’s Office of the Silesian Voivodeship acting together with the Upper Silesian Fund. The Global Silesia program strengthens the multifaceted development of these companies, increases the region’s investment attractiveness, and boosts the diversification awareness of entrepreneurs.

The Upper Silesian Fund program is addressed to micro, small and medium-sized enterprises based in the Silesian Voivodeship or operating in its territory. Companies not only take part in crucial global economic events but also acquire valuable and practical knowledge during training as part of the Internationalization Academy. Hosted by experts and experienced practitioners, the cyclical meetings held at the Academy allow you to expand your knowledge of the most important aspects of business internationalization. The Upper Silesian Fund also actively supports Polish companies during trade missions to foreign countries and helps them in expansion at international fairs. Each year, it hosts more than 15 events dedicated to micro, small and medium-sized enterprises from the Silesian Voivodeship. Its 2021 activities included organizing trade missions to Croatia, Tunisia and Georgia. A major initiative of this type was a trip to Expo 2020 Dubai, which coincided with key events of Poland’s Expo program – the Polish-Arab Economic Forum (December 6, 2021) and the Polish Day (December 7, 2021). The mission brought Silesian Companies many opportunities to establish new business contacts in the United Arab Emirates and other Middle Eastern states. It is worth adding that Dubai is not only the center of trade in the region but also a hub connected to even more distant markets.

The project “Economic promotion of the region and activities related to the creation of favorable conditions for investment and export” is co-financed by the European Regional Development Fund under the Regional Operational Program of the Silesian Voivodeship for 2014-2020.

To learn more about the project, please visit https://invest-in-silesia.pl and  https://fgsa.pl/

About Neel Achary 18722 Articles
Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.